Malaysia Manufacturing Shrinks for 1st Time in 3 Months

2026-06-02 00:35 By Chusnul Chotimah 1 min. read

Malaysia’s S&P Global Manufacturing PMI declined to 49.0 in May 2026 from April’s four-year high of 51.6, marking the first contraction since February.

The latest reading was also the lowest in three months, as new orders and output eased amid subdued demand.

Meanwhile, new export orders softened for a third consecutive month and at the sharpest rate since last October.

In response to moderated output, firms paused hiring, while purchasing activity increased for the second consecutive month.

The increase was driven by efforts to hedge against expected raw material price hikes and to build buffer stocks amid the ongoing conflict in the Middle East.

On the price front, input costs rose, driven by higher raw material and fuel prices, although inflation eased from April's recent peak.

Meanwhile, output price inflation also eased as firms sought to remain competitive.

Lastly, business confidence improved for the first time in four months, reaching its highest level since February.



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Malaysia Manufacturing Shrinks for 1st Time in 3 Months
Malaysia’s S&P Global Manufacturing PMI declined to 49.0 in May 2026 from April’s four-year high of 51.6, marking the first contraction since February. The latest reading was also the lowest in three months, as new orders and output eased amid subdued demand. Meanwhile, new export orders softened for a third consecutive month and at the sharpest rate since last October. In response to moderated output, firms paused hiring, while purchasing activity increased for the second consecutive month. The increase was driven by efforts to hedge against expected raw material price hikes and to build buffer stocks amid the ongoing conflict in the Middle East. On the price front, input costs rose, driven by higher raw material and fuel prices, although inflation eased from April's recent peak. Meanwhile, output price inflation also eased as firms sought to remain competitive. Lastly, business confidence improved for the first time in four months, reaching its highest level since February.
2026-06-02
Malaysia Manufacturing Growth Hits 4-Year High
Malaysia’s S&P Global Manufacturing PMI rose to 51.6 in April 2026 from 50.7 in March, marking a four-year high and signaling a moderate improvement in factory activity. Output expanded at the fastest pace since December 2021, driven largely by stockpiling efforts as firms and clients built safety inventories amid the Middle East conflict. New orders returned to growth after two months of moderation, supported by bulk buying, though export demand weakened for a second straight month. Employment increased for a second consecutive month, while backlogs rose slightly due to material shortages and delivery delays. Purchasing activity picked up as firms sought to secure inputs, but inventories of pre-production goods continued to decline. On the price front, input cost inflation accelerated to a 45-month high, driven by rising energy and material costs, while output charges increased at a record pace. Lastly, business confidence weakened to an eight-month low.
2026-05-04
Malaysia Manufacturing Activity Returns to Growth
Malaysia’s S&P Global Manufacturing PMI rose to 50.7 in March 2026 from 49.3 in February, marking the highest level since April 2022. Output rose at the fastest pace since December 2021, supported by improved demand conditions and new tender wins. Employment increased as well, ending two months of job cuts, while firms reduced backlogs, reversing February’s slight accumulation. However, new orders moderated for the second straight month, and international demand softened for the first time in three months, prompting firms to cut purchasing activity for the first time in nine months. Input cost inflation increased to its highest level since October 2024, driven by higher transport, energy, and material costs amid the Middle East conflict, while output price inflation hit a 45-month high and was stronger than the historical average. Lastly, business sentiment for the year-ahead outlook weakened further to a seven-month low.
2026-04-01