Textile & apparel output up in 2006

22 Aug '07

3 min read

In 2006, the production index of the Malaysia textiles and apparel industry increased by 7.5 per cent to 89.8, compared with 83.5 in 2005.

The expansion in production was due largely to a 21.9 per cent increase in the production of the apparel sub-sector to meet the increased demand in export markets.

Sales:
In 2006, the textiles and apparel industry experienced decline in sales by 6.0 per cent to RM8.2 billion, from RM8.7 billion in 2005. Sales of apparel products decreased by 10.1 per cent to RM3.1 billion in 2006, from RM3.4 billion in 2005, due to competition from imported apparel.

Sales of textiles products also recorded a decrease by 3.4 per cent to RM5.1 billion in 2006, from RM5.3 billion in 2005.

Employment:
Employment in the textiles and apparel industry decreased by 2.2 per cent to 65,023 workers in 2006, compared with 66,506 workers in 2005.

This was due to increase automation in the production processes and outsourcing of labour intensive activities from low cost producing countries, such as Viet Nam.

Productivity
The textiles and apparel industry registered a decline in Sales Value per Employee of 1.5 per cent to RM128,090 in 2006, compared with RM130,050 in 2005. Labour Cost per Employee and Unit Labour Cost increased by 1.3 per cent and 2.8 per cent, respectively.

In 2006, the textiles sub-sector recorded an increase of 3.7 per cent in Sales Value per Employee. The sub-sector was able to sustain its labour cost competitiveness as indicated

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