Malaysia Manufacturing PMI Dips to 4-Month Low

Malaysia’s S&P Global Manufacturing PMI fell to 49.3 in February 2026 from a 20-month high of 50.2 in January. This signalled a moderation in the sector’s health for the first time in four months, amid renewed slowdowns in new orders and output. This led to a sharp drop in employment, the joint-strongest in the series history, matching the pace seen in August 2020. Purchasing activity softened, while firms continued to report longer delivery times, the most marked in 15 months. Stocks of purchases and finished goods were also reduced, extending current declines to eight and three months, respectively. After four consecutive months of decline, backlogs of work recorded a fresh increase. Regarding prices, input costs rose modestly following January’s first decrease in 68 months, while output prices fell for the first time in four months. Still, manufacturers remained optimistic about production in the year ahead, hoping that improved demand conditions will feed through to output growth.

Malaysia’s S&P Global Manufacturing PMI edged up to 50.2 in January 2026 from 50.1 in December. This marked the third month of growth and the highest level since May 2024, supported by a renewed rise in output and stabilising demand conditions. New export orders increased for the first time in five months and at the fastest pace since July 2024. Manufacturers raised their purchasing activity modestly, which partly helped to soften the decline in pre-production inventories. After December’s job creation, which ranked among the fastest on record, firms reduced staffing levels in January but remained on top of workloads, as backlogs dropped for a fourth month. Input costs fell the first time since May 2020, linked to the appreciation of the Malaysian ringgit. Output price inflation rose but remained modest and below the series average. Lastly, sentiment regarding output prospects rebounded notably and was the second-highest since October 2013, only behind that seen in November 2025.

Malaysia’s S&P Global Manufacturing PMI held at 50.1 in December 2025, unchanged from November but still at its highest level since May 2024. The latest reading signaled a second straight month of factory activity growth after earlier periods of decline. Employment rose for a second month, marking the third-fastest gain since records began in 2012 and the strongest in over seven years. Output edged toward stabilization, while new orders slowed slightly. Export orders eased for a fourth month, with the pace of decline marginally stronger than in November. Buying activity stagnated for the first time since June. Delivery times lengthened again due to adverse weather and congestion, though delays stayed limited. Finished goods inventories fell the most in eight months as firms drew on stock to meet sales. On prices, input costs and output charges rose marginally, with inflation at multi-month lows. Lastly, sentiment stayed positive, but optimism eased from November’s 12-year top.