Kuala lumpur: Malaysia’s manufacturing sector experienced a slight downturn in October, with the Purchasing Managers’ Index (PMI) slipping to 49.5 from 49.8 in September.

According to BERNAMA News Agency, revealed in their Kenanga Economic Viewpoint report, was marginally below the neutral threshold of 50.0, marking the lowest level in four months.

Despite the decline, the bank noted that manufacturing conditions remained largely unchanged and in mild contraction. This signals a weak start to the final quarter of 2025, aligning with expectations for slower growth during this period. Kenanga highlighted that new orders declined for the first time in three months, attributed to muted market activity and weakened client confidence, particularly affecting the Asia-Pacific and African markets.

The report further detailed that Asia’s overall manufacturing performance weakened, with countries such as Taiwan, Japan, and South Korea also reporting lower PMI readings. This was due in part to softer external demand and the implications of import tariffs imposed by the United States.

Kenanga maintained its gross domestic product (GDP) growth forecast for 2025 at 4.5%, in contrast to an estimated 5.1% for 2024.