Malaysian manufacturing sales in March surged 16.2 percent year-on-year to RM33.7 billion, official data showed today, with economists saying it marked a record high boosted by strong global chip demand.

March sales were also up 14.6 percent from February, the Statistics Department said in a statement.

For the first quarter of the year, the sector had cumulative sales worth RM92.7 billion, an increase of 13.5 percent year-on-year, it said.

"March's manufacturing sales are a new all-time high, thanks to strong global chip demand as well as robust domestic demand," said Azrul Azwar, senior economist with MIDF Bhd.

Output likely to increase further

Azrul noted that the growth in sales during the month outpaced manufacturing output which expanded 14.9 percent.

"Judging by the faster growth in sales compared to output, it indicates that manufacturers are facing a ... growing book order. This means that output is likely to increase over the next few months due to rising chip demand," he said.

The uptrend in sales is expected to be maintained for the first half of the year before any signs of moderation emerge, he added.

Other economists said Malaysia's manufacturing sector rebound should help the country's economy grow by at least six percent this year.

The central bank has raised its 2004 growth forecast to 6.0-6.5 percent, up from 5.5-6.0 percent previously, after a better-than-expected showing of 5.2 percent last year. It projected double-digit expansion of 10.2 percent for manufacturing after 8.2 percent growth in 2003. - AFP