KUALA LUMPUR: Business conditions in the Malaysian manufacturing sector moved closer to stabilisation at the end of the first half of 2025, according to S&P Global Market Intelligence.
In a note today, the firm said the latest S&P Global Malaysia manufacturing purchasing managers’ index (PMI) reading suggests that the modest growth seen in official gross domestic product (GDP) statistics in the first quarter of 2025 was sustained into the second quarter.
"The data also suggests that the expansion in manufacturing production continued throughout the second quarter,” it said.
The seasonally adjusted S&P Global Malaysia manufacturing PMI rose to 49.3 in June, up from 48.8 in May.
S&P Global economist Usamah Bhatti said June data indicated a gradual move towards stabilisation in the health of the Malaysian manufacturing sector, although operating conditions remained challenging.
"Firms recorded sustained, albeit softer, moderations in demand and production - the softest in four months. Most encouragingly, firms raised their employment levels for the first time since last September.
"That said, concerns were raised on the price front, with manufacturers recording the steepest increase in input prices for seven months.
"In response, firms lifted their charges to the greatest extent in nearly a year in a bid to protect margins,” he said in a statement today.
According to S&P Global, there was also a softer reduction in new export orders, while businesses signalled a renewed rise in employment during June.
"Business confidence, meanwhile, was positive but remained well below the series average.
"On the price front, input cost inflation gathered pace from May to reach the highest in seven months. In turn, firms signalled the strongest rise in output charges since August 2024,” it said. - Bernama
