KUALA LUMPUR: The latest purchasing managers index (PMI) data for the manufacturing sector in 2025 shows an upward trend with readings of 48.7 points in January and 49.7 points in February, says Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Finance Minister, said that the government will continue to monitor Malaysia’s manufacturing sector to ensure it continues to drive the country's economic growth.
"The implementation of national policies, such as the Madani Economic Framework, which includes the New Industrial Master Plan 2030 (NIMP 2030) and the National Semiconductor Strategy (NSS), demonstrates the government's commitment to strengthening the competitiveness and sustainability of the country's manufacturing sector at the global level.
"The government's efforts through the 2025 Budget are expected to continue driving this sector to face current and future challenges," he said in a parliamentary written reply to a question raised by Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam).
Dr Wee had asked the Finance Ministry to explain the government's view on the previous downward trend of the PMI for seven consecutive months until Dec 2024.
He also wanted to know the government's plan to address the contraction of the manufacturing sector.
In response, Anwar said that the PMI is one of the economic indicators used to assess trends in the manufacturing sector through a monthly survey of 450 manufacturing companies.
"The decline in Malaysia's manufacturing PMI, which experienced a downward trend for seven consecutive months from June to December 2024, does not reflect an actual deterioration in the performance of the manufacturing sector.
"PMI is solely based on survey feedback and business sentiment during a specific period, and does not take into account other factors such as the increase in value-added industrial output and foreign direct investment," he said
Anwar added that the performance of the manufacturing sector needs to be assessed holistically, taking into account various economic indicators.
"PMI is also not the only indicator that reflects the overall performance of the manufacturing sector.
"There are other economic indicators for the manufacturing sector that show better performance during the same period, which more accurately reflect the true state of the manufacturing sector in the country," said Anwar.
Malaysia’s manufacturing PMI compiled by S&P Global signalled a softer contraction in industrial activity in February, with the PMI edging higher to 49.7, the highest reading since August 2024.
For the first time in four months, firms also recorded an increase in new orders, easing the decline in production volumes.
