Malaysia's manufacturing sales, which are a key driver of the economy, sank 26.2 percent in April from a year earlier, according to official data released today.

The government's statistics department attributed the sharp fall to the poor performance of the iron and steel sector and the computer industry amid lower demand due to the global economic slowdown.

The number of people employed in the manufacturing sector, which accounts for about a third of Malaysia's gross domestic product, fell 7.7 percent from the same period a year ago, the department said.

Revised March manufacturing figures showed sales were down 25.6 percent year-on-year.

Malaysia has said its economy is likely to contract by 4.0-5.0 percent this year, despite a massive RM60 billion stimulus package unveiled in March, after the economy shrank 6.2 percent in the first quarter.

Auto sales also plunged 8.3%

The country’s auto sales fell for an eighth month in May. It plunged 8.3 percent year on year last month to 43,944 units, an industry group said.

However, the Malaysian Automotive Association (MAA) said the figure was up from the 41,135 vehicles sold in April, helped by a 16.6 percent jump in sales of domestically made cars.

It added that sales of imported autos dipped 4.5 percent from April as a result of an unexpected increase in interest rates on hire-purchase loans.

Sales of motor vehicles totalled 203,760 in the first five months of the year, 11 percent lower than at the same point in 2008.

The industry group forecast sales at 480,000 units for the whole of this year, down from 548,115 last year.