The capacity utilisation rate increased and above 80 per cent throughout the third quarter of 2024.  In July 2024, the Manufacturing industry operated at 82.2 per cent (July 2023: 78.6%), increased 3.6 percentage points compared to the previous year, while August 2024 registered 82.8 per cent (August 2023: 79.6%), increased 3.2 percentage points; and 82.3 per cent in September 2024 (September 2023: 80.1%), increased 2.2 percentage points. Even so, factors such as low demand; insufficient supply of materials; and the repair & maintenance of machinery & equipment remained as the main constraints to achieve full capacity utilisation.

The capacity utilisation in the export-oriented industries increased by 3.4 percentage points to 81.8 per cent (Q3 2023: 78.4%). The rise was mainly attributable to the increase of capacity utilisation rate in the Manufacture of computer, electronics and optical products industry (81.3%) by 2.3 percentage points; as well as 2.2 percentage points increase in the Manufacture of chemical and chemical products (84.4%) industry. However, two industries recorded the capacity utilisation below 80 per cent namely Manufacture of vegetable and animal oils and fats (79.4%); and Manufacture of wood and products of wood and cork, except furniture, manufacture of articles of straw and plaiting materials (76.6%). In comparison with the previous quarter, the capacity utilisation rate of the export-oriented industries also rose by 0.5 percentage points from 81.3 per cent recorded in second quarter of 2024.

In the meantime, the capacity utilisation in the domestic-oriented industries also expanded by 2.1 percentage points to 83.8 per cent. The expansion was primarily influenced by the Manufacture of fabricated metal products, except machinery & equipment (84.4%); and the Manufacture of processed food products (84.9%) industries, which increased by 2.7 percentage points and 1.7 percentage points, respectively. Conversely, the lowest capacity utilisation rate was posted by the Manufacture of paper and paper products industry at 78.4 per cent. As compared to the second quarter of 2024, the capacity utilisation in the domestic-oriented industries also went up by 0.1 percentage points from 83.7 per cent.

The Manufacturing industry capacity utilisation rate that surpassed the national rate in the third quarter of 2024 recorded for seven states, namely WP Labuan (96.7%), Terengganu (85.8%), Negeri Sembilan (85.7%), Selangor (85.3%), Pahang (85.3%), Melaka (85.2%), and Johor (84.4%). The lowest capacity utilisation rate posted by Perlis at 67.5 per cent with 1.7 percentage points decline as compared to the same quarter last year.