KUALA LUMPUR: Business conditions in Malaysia’s manufacturing sector moderated for the first time in four months in February 2026 based on the S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI), which eased to 49.3, below the neutral 50.0 threshold.
The PMI hit a 20-month high of 50.2 in January.
In a statement, S&P Global Market Intelligence economist Maryam Baluch said the sector reported a challenging month with companies reporting weakness in output and new order.
She said although cost burdens rose, manufacturers highlighted the importance of reviving demand and chose to offer discounts to customers.
"While the decrease in output prices was only marginal, this could aid companies in securing new business in the coming months,” she added.
S&P Global also highlighted the issue of longer delivery times of up to 15 months.
"Port and container congestion, customs delays and increased supplier workloads were some of the reasons linked to the latest deterioration in vendor performance,” it said.
However, it said production forecasts across Malaysian manufacturers remained optimistic, with firms hopeful that improved demand conditions will feed through to output growth. - Bernama
