Kuala lumpur: The seasonally adjusted S and P Global Malaysia Manufacturing Purchasing Managers' Index (PMI) for December 2025 remained unchanged at 50.1 from November's reading.
According to BERNAMA News Agency, this figure represents a continued fractional strengthening in the operating conditions within Malaysia's manufacturing sector.
The report states that, based on historical data trends, the current PMI reading aligns with further solid year-on-year growth in both gross domestic product (GDP) and manufacturing production as 2025 concludes. This positive outlook is supported by a notable increase in workforce numbers, with employment rising for the second consecutive month in December. This uptick is the third-fastest recorded since data collection commenced in July 2012 and marks the most significant increase in over seven years.
S and P Global Market Intelligence economist Maryam Baluch highlighted that the Malaysia Manufacturing PMI remained positive as the year ended. A key observation from the latest survey indicates employment rose at one of the strongest rates on record, with signs of output stabilization. Companies reportedly hired additional staff in anticipation of new projects and to fill vacancies, while output showed signs of stabilizing in December.
Baluch noted a moderation in new order inflows during December, following a modest expansion in the prior month. The subdued demand conditions were reflected in softer price pressures, with mild inflationary trends partially due to a slowdown in raw material purchasing activity. Some firms offered discounts to clients to boost sales.
Muted demand trends were cited as a factor in the easing of new business, with new export orders experiencing a fourth consecutive monthly decline in December. The rate of moderation was slight but slightly stronger than the previous period.
The report further indicated a stagnation in purchasing activity among goods producers, with the seasonally adjusted index aligning with the neutral threshold of 50.0. This marks the first time since last June that goods producers did not increase their input purchases.