Kuala Lumpur: The seasonally adjusted S and P Global Malaysia manufacturing purchasing managers’ index (PMI) remained unchanged at 49.5 in October 2024, marking a significant period of stability as new orders saw an increase for the first time since June 2024.
According to BERNAMA News Agency, the PMI figure, which slightly lingers below the neutral 50.0 threshold, indicates a minor softening in business conditions over the month. While the data continues to reflect muted conditions in the sector, the rate of moderation was reported to be minimal.
The report highlighted that overall new business experienced a seventh consecutive month of growth in October 2024, driven by sustained demand in new export orders. Businesses reported increased order volumes from customers across the Asia-Pacific region, including countries such as Australia, the Philippines, and Vietnam.
Despite the growth in order books, production levels at Malaysian manufacturers were scaled back for the fifth consecutive month, attributed
to subdued general demand conditions. On the cost front, higher raw material costs and unfavorable exchange rate fluctuations resulted in a rise in input prices; however, the rate of inflation eased to a three-month low.
S and P Global noted that the pace at which firms increased their selling prices was the slowest recorded since May 2024. Looking ahead, the agency expects the growth in new orders to continue over the coming year, bolstering optimism for the 12-month outlook for manufacturing production.
Market Intelligence economist Usamah Bhatti expressed optimism for the months ahead, as firms remain hopeful that the renewed increase in orders will be sustained and potentially accelerate. This anticipated recovery in production levels is expected to reflect positively in forthcoming official data readings.
