KUALA LUMPUR, Feb 3 — The seasonally adjusted S&P Global Malaysia manufacturing purchasing managers’ index (PMI) rose to 48.7 in January 2025, signalling a sustained and modest softening in the health of the manufacturing sector.
S&P Global said the latest PMI reading suggested that gross domestic product growth was running at a softer, yet still positive rate, as well as pointing to sustained year-on-year improvements in official manufacturing production data.
“Production levels were subdued in the latest survey month, with the respective seasonally adjusted index remaining below the neutral 50.0 mark. Output has now been scaled back for eight months in succession, with the latest moderation the most pronounced since December 2023,” it said in a statement here today.
According to S&P Global, muted new order inflows were a key factor behind the decrease, although some firms commented on higher input prices and delivery delays.
Moving forward, S&P Global said sentiment in the Malaysian manufacturing sector was positive at the start of 2025 with hopes of better demand conditions underpinned by predictions of output growth in the year ahead.
S&P Global Market Intelligence economist Usamah Bhatti said that in response to current demand conditions, manufacturing firms opted to lower their selling prices as part of attempts to stimulate sales.
He added that the reduction was the first since June 2023 and – while only modest – was the strongest seen for a decade.
“Sentiment stayed positive, however, with firms expecting higher output in the coming year. The degree of confidence was solid despite easing to a seven-month low, amid hopes of improved demand conditions,” he said. — Bernama
