Kuala Lumpur: The seasonally adjusted S and P Global Malaysia manufacturing purchasing managers’ index (PMI) climbed to 49.7 in February 2025, marking the highest level since last August, as reported by S and P Global. This uptick reflects a continuation of modest growth in Malaysia’s official gross domestic product (GDP) data for the first quarter of 2025, following trends observed in the latter half of the previous year.

According to BERNAMA News Agency, the data indicates that Malaysia’s manufacturing production expansion persisted into 2025, with new orders rising for the first time since October in the latest survey period. S and P Global attributed the increase in overall new business partly to growth in domestic sales, although new export orders declined for the third consecutive month, particularly within the Asia-Pacific region.

S and P Global Market Intelligence economist Usamah Bhatti commented on February’s data, highlighting improving trends in Malaysia’s manufacturing sector despite generally challenging conditions. “Most encouragingly, firms secured greater volumes of new work for the first time in four months. However, demand remained largely muted. As a result, production and employment were scaled back, though only marginally,” Bhatti stated.

Bhatti further noted that cost inflation stayed subdued relative to the series average and showed little change from January, enabling firms to reduce selling prices for a second consecutive month. “The outlook for the coming months appears brighter, as firms are hopeful that the renewed increase in new orders will be sustained and accelerate, leading to an eventual recovery in production,” he added.