KUALA LUMPUR, May 2 (Xinhua) -- The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI) fell slightly from 48.8 in March to 48.6 in April.
S&P Global Market Intelligence said in a note on Friday that the PMI signaled a modest weakening in the health of the Malaysian manufacturing sector, which was nonetheless the most pronounced in 2025 so far.
That said, given the historical relationship between the PMI and official data, the latest data suggest that gross domestic product (GDP) growth continued as the second quarter of the year got underway, while also pointing to sustained year-on-year improvements in official manufacturing production.
"PMI data for the start of the second quarter of 2025 suggest that demand conditions in the Malaysian manufacturing sector remained subdued during April, as production and new order inflows continued to moderate. That said, the data are still consistent with the GDP growth observed in the final quarter of last year continuing," said S&P Global Market Intelligence economist Usamah Bhatti.
According to him, further evidence indicates that conditions are likely to remain muted in the short- and medium-term.
He noted that firms opted to work through existing orders in the absence of new order growth while also scaling back employment, purchases, and stock holdings.
"Inflationary pressures trended downwards once again in April, with average cost burdens rising only mildly, which contributed to a further fractional reduction in charges. However, this was not enough to improve confidence regarding the outlook, as the overall degree of optimism slipped to its lowest level since July 2023," he says, adding that firms expressed concerns about the potential adverse impacts of a muted global economy and U.S. tariffs. Enditem
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