Malaysian Textile Output Declines - Apparel Output Maintained

Malaysia's textile sector has experienced a severe downturn during the first half of 2007, with monthly output declining for the past five months of 2007. 

The cotton-weaving sector has led this weakness, with May cotton fabric production falling 20.7 percent from the previous year, while January through May cumulative cotton fabric output dropped 7.1 percent to 62.882 million square meters. 

In contrast, monthly apparel output has continued to expand.  May apparel output posted 9.2 percent year-on-year growth, reaching 8.666 million units, while January through May cumulative apparel output grew 14.1 percent to 37.384 million units.

The industry's problems are tied to a sharp reduction in exports.  January through May cumulative textile and apparel exports fell 16.3 percent to RM3.996 billion (continued appreciation in the Ringgit has hurt the sector's competitiveness). 

Export volume to the U.S., the top export destination, sharply declined during the first half of 2007, incurring a loss of 16.5 percent in January through May.  On the other hand, apparel exports actually posted 1.5 percent growth during this period, but textile exports to the U.S. have plunged 44.8 percent in volume.  This is at the heart of the downturn in textile output.

 

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