KUALA LUMPUR - MALAYSIA'S manufacturing sales, which are a key driver of the economy, sank 22.7 per cent in January from a year earlier, according to official data released on Thursday.

The government's statistics department attributed the sharp fall to the poor performance of the computer industry and the iron and steel sector.

The number of people employed in the manufacturing sector, which accounts for about a third of Malaysia's gross domestic product, fell 9.0 per cent from the same period a year ago, the department said.

Malaysian industrial output plunged 20.2 per cent year-on-year in January as the manufacturing, mining and electricity sectors suffered a decline.

The government last week unveiled a stimulus package worth US$16.2 billion (S$24.6 billion) but warned the export-driven economy could still shrink by 1.0 per cent this year despite the massive spending. -- AFP