Malaysia Manufacturing PMI Hits 5-Month Peak

The S&P Global Malaysia Manufacturing PMI rose to 49.7 in July 2025 from 49.3 in June, the highest reading since February, signaling a slower pace of contraction. New orders declined at the weakest rate in five months, moving closer to stabilization, while the moderation in output was the softest since February. Notably, overseas sales expanded for the first time in eight months, offering a boost to overall demand. Purchasing activity edged higher—the first rise in three years and the strongest since April 2022. Employment slipped slightly as backlogs of work continued to fall, with the rate of depletion accelerating to the fastest since February. On the price front, input cost inflation rose for the third month to its highest level since November 2024, driven by rising raw material costs and a weaker ringgit. However, output price inflation was largely unchanged, ticking up only modestly. Finally, confidence notched a five-month high, supported by hopes of a pickup in market demand.