Malaysia Manufacturing Growth Steady in July

2026-08-03 01:16 By Judith Sib-at 1 min. read

Malaysia’s S&P Global Manufacturing PMI came in at 50.7 in July 2026, unchanged from the previous month.

Growth in new orders accelerated to an eight-month high, while production increased only slightly.

Supporting the rise in total new orders was a renewed increase in new export orders, driven by improved demand from international customers, including those in Europe and the US.

This also pushed purchasing activity marginally into expansion territory.

However, supplier lead times lengthened for an eighth consecutive month.

Meanwhile, firms reported having sufficient capacity to process existing workloads and new order inflows, as reflected by a renewed decline in backlogs.

With this, manufacturers reduced employment levels in July.

Both input costs and output prices increased at their weakest rates in five months.

Nonetheless, business confidence fell to a three-month low and remained subdued by historical standards, as geopolitical tensions continued to weigh on the outlook.



News Stream
Malaysia Manufacturing Growth Steady in July
Malaysia’s S&P Global Manufacturing PMI came in at 50.7 in July 2026, unchanged from the previous month. Growth in new orders accelerated to an eight-month high, while production increased only slightly. Supporting the rise in total new orders was a renewed increase in new export orders, driven by improved demand from international customers, including those in Europe and the US. This also pushed purchasing activity marginally into expansion territory. However, supplier lead times lengthened for an eighth consecutive month. Meanwhile, firms reported having sufficient capacity to process existing workloads and new order inflows, as reflected by a renewed decline in backlogs. With this, manufacturers reduced employment levels in July. Both input costs and output prices increased at their weakest rates in five months. Nonetheless, business confidence fell to a three-month low and remained subdued by historical standards, as geopolitical tensions continued to weigh on the outlook.
2026-08-03
Malaysia Manufacturing Sector Returns to Growth
Malaysia’s S&P Global Manufacturing PMI rose to 50.7 in June 2026 from 49.0 in May, signaling a recovery in the manufacturing sector. Both new orders and output returned to growth in June after contracting marginally in the previous month. Following marginal increases in both April and May, manufacturers left input buying unchanged in June. While the fresh rise in new orders prompted some firms to increase their purchases of inputs and raw materials, others noted that demand was still too weak to justify higher buying activity. Employment levels also remained broadly stable. Meanwhile, supplier delivery performance deteriorated further in June, attributed to material shortages and the current geopolitical situation. On the price front, input cost inflation eased to a three-month low, although manufacturers raised selling prices at a faster pace than in May. Lastly, manufacturers remained optimistic about production growth over the coming 12 months.
2026-07-01
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