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...
Singapore's consumer price inflation showed a slight uptick in November, with overall CPI rising 1.6% year-over-year, compared to 1.4% in October. However, core CPI, which excludes private road transport and accommodation, slowed to 1.9% from October’s 2.1%, reflecting moderating price pressures in key areas.
Key Inflation Metrics
Overall CPI:
- MoM: No change.
- YoY: Increased by 1.6%.
- Below the 1.85% forecast in a Wall Street Journal survey.
Core CPI:
- YoY Growth: Slowed to 1.9% from 2.1% in October.
Sectoral Breakdown
- Housing & Utilities: +2.6% YoY (24.80% index weight).
- Food: +2.4% YoY (21.10% index weight).
- Transport: +0.5% YoY (17.07% index weight).
- Recreation & Culture: +1.4% YoY.
- Education: +3.0% YoY.
- Miscellaneous Goods & Services: +0.4% YoY.
- Communication: -1.3% YoY (only sector with negative growth).
Implications for Monetary Policy
The continued deceleration in core inflation, now hovering just under the 2% level, supports the case for the Monetary Authority of Singapore (MAS) to consider an easing of its exchange rate-based policy. MAS typically views core inflation below 2% as aligned with its long-term goals for economic stability.
Outlook
Singapore's inflation dynamics suggest that price stability is largely on track, with signs of moderation in critical sectors like food and transport. Policymakers may leverage this trend to sustain economic growth while keeping inflationary pressures under control.
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