Kuala Lumpur: Seven states surpassed the nation's manufacturing industry capacity utilisation of 81.9 per cent in the fourth quarter of 2024, with Labuan leading at 97.9 per cent, followed by Johor and Pahang at 84.8 per cent and 84.6 per cent, respectively.

According to BERNAMA News Agency, Selangor, Melaka, Negeri Sembilan, and Terengganu also exceeded the national average, with capacity utilisation rates of 84.1 per cent, 84.0 per cent, 83.2 per cent, and 82.8 per cent, respectively. Perlis recorded the lowest rate at 67.4 per cent, a decline of 5.3 percentage points from the previous year.

All sub-sectors posted capacity utilisation above 80 per cent, with the non-metallic mineral products, basic metal, and fabricated metal products sub-sector achieving the highest rate at 84.7 per cent. This was followed by textiles, wearing apparel, leather, and footwear at 83.4 per cent, and transport equipment and other manufactures at 82.0 per cent, according to DOSM's chief statistician, Datuk Seri Uzir Mahidin.

Despite the overall positive performance, the manufacturing industry's capacity utilisation saw a slight decline of 0.5 percentage points compared to the third quarter of 2024. The year-on-year increase in capacity utilisation was noted throughout the quarter, with October, November, and December showing rates of 81.9 per cent, 82.2 per cent, and 81.4 per cent, respectively.

Factors such as low demand, insufficient supply of materials, and machinery maintenance were cited as primary causes for under-utilisation. Export-oriented industries saw an increase in capacity utilisation by 2.4 percentage points to 80.9 per cent, with the manufacture of furniture achieving the highest rate at 87.8 per cent.

However, the manufacture of vegetable and animal oils and fats, and wood products recorded rates below 80 per cent. Export-oriented industries saw a marginal decline of 0.9 percentage points compared to the previous quarter.

In contrast, domestic-oriented industries maintained a positive growth rate, increasing by 1.0 percentage points to 83.9 per cent. The manufacture of tobacco products and other non-metallic mineral products led with rates of 92.0 per cent and 86.6 per cent, respectively. Despite this, the manufacture of motor vehicles and paper products posted the lowest rates in this segment.

Overall, the manufacturing industry capacity utilisation rate for 2024 was 81.8 per cent, marking an increase of 2.4 percentage points from the previous year.