Malaysia Textile/Apparel Output Rebounds in November

Rebounding November 

Malaysia's textile and apparel sector experienced a rebound in both production and output in November 2006.  This was accompanied by a surge in exports, with total textile, apparel and footwear exports reaching RM930.7 million, which was the highest level since August and represented a 22 percent year-on-year increase. 

Total January through November cumulative exports expanded 7.5 percent to RM10.268 billion.  The top export market was the U.S., with January through November exports to the U.S. increasing 14.6 percent to 347.48 million square meters. 

Monthly apparel output has been very strong in recent months, expanding 39.9 percent in September, 17.4 percent in October and 14.6 percent in November.  November output reached 7.505 million units, which was the second highest output of the year.  January through November cumulative apparel output expanded 35.7 percent to 76.91 million units, while textile output experienced a more limited recovery.

Slowed in September

Malaysia's boom in textile and apparel exports dramatically slowed in September through October, but remained strong year-to-date.  September exports of textiles, apparel and footwear declined 6 percent from the previous year to RM913.9 million and were followed by a 20.6 percent decrease to RM781.3 million in October.  October shipments were somewhat influenced by a reduction in the number of working days during the month due to the Islamic Eid Holiday and Hindu Deepavali Festival

January through October cumulative exports reached RM9.356 billion (2.663 billion U.S. dollars), representing a 6.5 percent year-on-year increase.  The U.S. remained one of the top markets, with exports through October up 17.6 percent.  Cotton apparel and man-made fiber non-apparel products were the strongest export products.

Textile and apparel production significantly increased in the January through July time period.  The slowdown in exports led to a downturn both in September and October, with September production falling 2.3 percent and October declining 8.5 percent.  October total output was the lowest since February, and the weakest sector has been cotton textiles. 

Cotton fabric output

Cotton fabric output has turned very weak in recent months -- October output plunged 18 percent below year-ago levels at 13.122 million square meters.  Year-to-date output has declined 4.2 percent.  In contrast, domestic output of apparel has continued strong, up 17.4 percent in October and up 38.5 percent year-to-date.  Strong domestic demand has been evident, influenced by robust economic growth.

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