Malaysia's manufacturing sales, which are a key driver of the economy, dived 26.1 percent in February from a year earlier, according to official data released today.

The government's statistics department attributed the sharp fall to the poor performance of the computer sector, the iron and steel industry and the refined petroleum sector as the knock-on effects of the global downturn evaporate demand and slow the Malaysian economy.

The number of people employed in the manufacturing sector, which accounts for about a third of Malaysia's gross domestic product, fell 6.5 percent from the same period a year ago, the department said.

The ministry also downwardly revised January manufacturing figures to show that sales for that month were 29.1 percent lower compared to a year earlier.

Malaysian industrial output plunged 20.2 percent year-on-year in January as the manufacturing, mining and electricity sectors suffered a decline.

The government in March unveiled a stimulus package worth RM60 billion but warned the export-driven economy could still shrink by 1.0 percent this year despite massive spending plans.

An independent think tank, however, said yesterday that Malaysia's export-driven economy will shrink by 2.2 percent this year, citing gloomy business and consumer confidence.