KUALA LUMPUR (XINHUA) – The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) was little-changed in January, rising from 48.6 in December 2024 to 48.7 to signal a sustained and modest softening in the health of the manufacturing sector.
S&P Global said in a statement yesterday that Malaysia’s manufacturing sector conditions remained subdued at the start of 2025, as firms recorded ongoing moderations in both production and new orders.
The latest PMI reading also suggested that Malaysia’s gross domestic product (GDP) growth is running at a softer, yet still positive rate, as well as pointing to sustained year-on-year improvements in official manufacturing production data.
Economist at S&P Global Market Intelligence Usamah Bhatti said PMI data for the opening month of 2025 revealed that business conditions in the Malaysian manufacturing sector were muted as production levels were scaled back at a quicker pace in the midst of subdued new orders.
“Moreover, the rate of reduction in output was the most pronounced in just over a year. As such, the data indicated that GDP growth is likely to have softened coming into the new year,” he noted.
He also said that in response to current demand conditions, manufacturing firms opted to lower their selling prices as part of attempts to stimulate sales.
“Sentiment stayed positive, however, with firms expecting higher output in the coming year. The degree of confidence was solid, despite easing to a seven-month low, amid hopes of improved demand conditions,” he added.
