KUALA LUMPUR: The headline Nikkei Malaysia Manufacturing Purchasing Managers' Index (PMI) dropped to 47.1 in April 2016 from 48.4 in March.
Financial information services provider Markit said the PMI April Index was the lowest in five months.
The index is an indicator of manufacturing performance, where any figure greater than 50.0 indicates overall improvement of sector operating conditions.
The headline PMI signalled a sharper rate of deterioration in the Malaysian manufacturing sector.
"According to panellists, a drop in demand and unstable economic conditions contributed to the fall in output. A marked contraction in production was matched by a sharp decrease in total new orders.
"In fact, new work intakes declined at the quickest rate since December 2015. The data suggested that a fall in domestic demand led to a further contraction in total new orders," Markit added.
Amy Brownbill, economist at Nikkei-Markit, said sharper declines in both new orders and production, and softer growth in international demand caused manufacturers to shed some of their workers for the second time this year.
"This suggests firms remain uncertain towards the outlook. Goods producers also cut back on input buying and at the fastest rate since the survey began in July 2012.
"Cost inflationary pressures intensified, after having increased at the weakest rate in eight months during March.
"Reports of the weak exchange rate pushing up imported raw material costs were cited as the main factor behind the rise in input prices," Brownbill added. - Bernama
Already a subscriber? Log in.
Limited time offer:
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!