(AFP) The country's manufacturing sales tumbled 7.2 percent year-on-year in 2001 and were down 16 percent in December, the Statistics Department said today.

December sales totalled RM23.6 billion, 4.8 percent lower than November's value, the department said in a statement.

The cumulative sales value for the manufacturing sector last year was RM309.4 billion, down from RM333.4 billion in 2000, it added.

In December, 977,048 workers were employed in the sector, down 6.8 percent from the same month last year and 0.6 percent lower than in November.

The manufacturing sector, which contributes 30 percent to Malaysia's gross domestic product, has been hit by the US slowdown and the aftermath of the Sept 11 terror attacks in New York and Washington.

Prime Minister Dr Mahathir Mohamad, who is also finance minister, has predicted last year's gross domestic product growth at 0.5-1.0 percent, down from an earlier government projection of 1.0-2.0 percent.

The premier said the economy was expected to grow 3.0 percent this year - down from an earlier official forecast of 4.0-5.0 percent.