KUALA LUMPUR (May 2): Malaysia’s manufacturing conditions deteriorated further in April as firms scaled back production amid subdued demand, latest data showed.
The seasonally-adjusted manufacturing purchasing managers index (PMI) slipped to 48.6 in April from 48.8 in March, according to S&P Global that compiles the gauge. A reading above 50 points indicates activity expansion, while a reading below 50 signals contraction in the sector.
“Further evidence indicates that conditions are likely to remain muted in the short- and medium-term,” said Usamah Bhatti, an economist at S&P Global. “Firms opted to work through existing orders in the absence of new order growth while also scaling back employment, purchases and stock holdings.”
The data, nevertheless, are consistent with the continuing economic growth observed since the final quarter of last year, she commented on the latest reading.
The government and Bank Negara Malaysia have recently said that the forecast for the economy to expand between 4.5% and 5.5% for 2025 may be revised, amid mounting external headwinds from international trade tensions.
Flash estimates showed that Malaysia’s gross domestic product (GDP) growth may have moderated to 4.4% in the first quarter of 2025.
Data from the latest PMI survey also suggested that the tough business conditions are likely to continue in the coming months, S&P Global said.
Further, the degree of confidence among manufacturers surveyed in the 12-month outlook for production waned from March and was the lowest recorded since July 2023 amid concerns over the global economic and trade outlook, S&P added.