Food and Beverage Drive Manufacturing Industry Growth

The non-oil and gas processing industry (manufacturing) in the fourth quarter of 2017 only grew by 5.14% year-on-year (YoY). This indicates that the manufacturing sector has not fully recovered, as the manufacturing sector's Gross Domestic Product (GDP) remains below the national economic growth of 5.19%. Cumulatively throughout last year, the non-oil and gas processing industry grew only 4.88% and also remained below the domestic GDP of 5.07%.

The food and beverage industry led the growth of the non-oil and gas processing industry. The industry's GDP in the last three months of last year grew by 13.76% year-on-year. The proliferation of culinary businesses in the country is one of the contributing factors.

Of the 15 industries in the manufacturing sector, only five were able to grow above the sectoral average. Even five industries experienced contraction (negative growth). The deepest contraction was in the tobacco processing sector, which experienced a contraction of 7.64%. The increase in cigarette excise duties, which came into effect at the beginning of 2018, will burden the tobacco processing industry.