Malaysia Manufacturing PMI Stays at 18-Month High

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.

The S&P Global Malaysia Manufacturing PMI rose to 50.1 in November 2025 from 49.5 in October, marking the highest print since May 2024 and signaling the first expansion in factory activity after 17 straight months of decline. New orders grew for the third time in four months, posting the fastest pace since April 2022, while foreign demand eased slightly. Firms expanded buying for a fifth month, helped by the first improvement in vendor performance since May. Pre-production inventories fell for the fifth month as stocks were used in production. Employment grew the most since September 2022, ending four months of job cuts, with backlogs of work falling to the largest extent since October 2023. On the price front, input cost inflation hit a four-month high amid higher raw material prices, driving the sharpest rise in output charges in 15 months. Looking ahead, sentiment climbed to its highest since July 2013, underpinned by new product launches, expansions, and stronger customer demand.