Malaysian Textile/Apparel Output Weakens

Malaysia's monthly output of textiles and apparel has declined for seven consecutive months, ranging from only 2.7 percent in April to a major drop of 19.4 percent in May.  The competitiveness of the textile and apparel sector has been impacted by loss in export orders, the continued appreciation of the Ringgit and the sector's overall cost structure.

Domestic textile production has been the hardest hit, but apparel output has sharply declined in June and July, dropping 9.2 percent and 7.2 percent, respectively, while year-to-date output is up 7.1 percent due to a brisk expansion in the first quarter of 2007.

Monthly exports of textiles and apparel have incurred losses for eight consecutive months.  July exports fell 5.4 percent to RM884.1 million, while January through July cumulative exports have fallen 12.1 percent to RM5.837 billion.  This downturn has been even greater in quantity terms due to a sharp increase in the average export price per unit. 

The steady appreciation in the Malaysian Ringgit against the U.S. dollar has undermined its market share in the U.S., which is the Malaysia's top export market.  January through August exports to the U .S. market declined 21.15 percent, with apparel exports dropping 6.78 percent and non-apparel exports decreasing 44.97 percent.  

 

Back to Index of December 2007