PETALING JAYA: Economists are positive on the country’s manufacturing activities as the year ends, but some are taking a cautious stance towards this trend moving into the first half of next year due to looming headwinds.
The electrical and electronics (E&E) sub-sector, including semiconductors, is expected to lead the way for stronger manufacturing growth, further underpinned by the deployment of artificial intelligence (AI), favourable investments and construction activities from various projects.
OCBC senior Asean economist Lavanya Venkateswaran told StarBiz she expects manufacturing activities, particularly associated with the E&E appliances sector, would remain solid for the remainder of 2025 and into early 2026.
“We expect continued resilience in E&E production moving into next year, albeit moderating from 2025, supported by AI-related applications and data centre infrastructure.
“However, the question remains whether growth momentum in this sector can sustain through 2026,” Lavanya said.
OCBC Senior Asean econo
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