KUALA LUMPUR, March 3 — Malaysia’s manufacturing sector showed signs of expansion as new orders increased for the first time in four months, suggesting growth momentum into 2025.
The S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) rose to 49.7 in February, the highest since August 2024, moving closer to the neutral 50.0 mark.
“February data indicated improving trends for the Malaysian manufacturing sector, although conditions remained generally challenging,” said Usamah Bhatti, economist at S&P Global Market Intelligence.
Manufacturers reported a slight increase in new business, with firms attributing this to a gradual improvement in demand despite lingering caution among clients.
The rise in orders helped soften the decline in production volumes, though employment levels remained slightly reduced.
“Most encouragingly, firms were able to secure greater volumes of new work for the first time in four months; however, there were still reports that demand remained largely muted,” Bhatti added.
While domestic sales improved, export orders continued to decline, particularly in the Asia-Pacific region.
Manufacturers maintained a cautious approach, limiting stockpiling and reducing purchasing activity at a slower rate than in January.
“Cost inflation also remained subdued compared to the series average and was little changed from that observed in January,” Bhatti noted.
Looking ahead, firms expressed optimism that the rebound in new orders would persist and accelerate, paving the way for a broader recovery.
“The outlook for the coming months appears brighter, as firms are hopeful that the renewed increase in new orders will be sustained and accelerate, leading to an eventual recovery in production levels,” Bhatti said.
