Malaysian Textile & Apparel Exports
Decline in Step with Falling Output

Better reflecting fading shipments to Malaysia’s largest foreign textile and apparel market, August exports fell at the steepest pace in months, more closely following the trend in textile and apparel production.  

Changes in exports and output returned closer to parity with one another in August, as shipments fell -5.6% from twelve months earlier to just over RM1.0 billion, the steepest decline in five months. This decline slowed the year-to-date growth to 3.5% from the first eight months of last year.  The drop more closely tracks the -10.2% fall in August production of textiles and apparel, the fifth straight month of eroding output.   

These declines pull the year-to-date output in the sector down -0.6% from the same period last year.  Long term, the divergence this year between higher exports and slightly lower output is unsustainable, as most output from the sector is destined for foreign markets and thereby a function of growth in foreign demand. 

 

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