The electronics manufacturing services (EMS) sector in Malaysia has seen mixed performance in 2024 despite being part of the broader tech upcycle, with rising costs, inflation, and supply chain disruptions offsetting growth from increased global demand and outsourcing trends. Key EMS Performances Winners : SKP Resources Bhd (+76% YTD) V.S. Industry Bhd (+47% YTD) NationGate Holdings Bhd (+51% YTD) P.I.E. Industrial Bhd (+29% YTD) Strugglers : ATA IMS Bhd (-8% YTD) JHM Consolidation Bhd (-36% YTD) Growth Drivers and Challenges Diversification Opportunities : The China+1 and Taiwan+1 strategies have positioned Malaysian EMS players to gain market share. However, reliance on major customers, such as Dyson, continues to be a concern. Cost Pressures : High inflation and production costs have affected profit margins. Company Highlights SKP Resources : Recorded a 27% y-o-y net profit increase , benefiting from a recovery in consumer demand. V.S. Indust...
Inflation in Malaysia ticked up slightly in October, driven by higher prices for food and personal care items, including jewellery, according to official data released on Friday.
The consumer price index (CPI) — Malaysia’s main measure of inflation — rose 1.9% year-on-year in October, slightly above the median forecast of 1.8% from a Bloomberg poll. This marked an increase from September’s inflation rate of 1.8%. Month-on-month, the CPI recorded a 0.2% rise in October.
The largest contributor to the CPI, food and beverages, saw a 2.3% increase compared to October last year. Meanwhile, the personal care and miscellaneous goods and services category surged by 3.4%.
Other categories such as restaurant and accommodation services; recreation, sport, and culture; health; transport; and household furnishings also rose but at a slower pace. Conversely, inflation in the information-and-communication and clothing-and-footwear categories remained in negative territory during October.
Sub-indices for housing, utilities, education, alcoholic beverages, tobacco, and insurance services maintained the same rate of increase as seen in September.
Core inflation, which excludes volatile and price-controlled items, held steady at 1.8% year-on-year in October, unchanged from the prior month. This measure reflects domestic-driven inflation dynamics.
The central bank anticipates inflation to stay “modest” for the rest of 2024, but the outlook for 2025 depends on domestic policies and external risks. The official inflation forecast for 2024 remains at 1.5%-2.5%, as stated in the Economic Report 2024/2025.
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