Malaysia’s manufacturing PMI remains unchanged at 49.7 in August

KUALA LUMPUR, Sept. 2 (Xinhua) — Malaysia’s manufacturing conditions remained broadly stable in August, with S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) staying at 49.7.
S&P Global Market Intelligence said in a statement on Monday that the latest data indicated a fractional downturn in the Malaysian manufacturing sector.
It suggested gross domestic product (GDP) growth in Malaysia is running at a broadly similar rate to that seen in the second quarter, as well as pointing to modest year-on-year improvements in official manufacturing production data.
“The latest PMI data suggested that demand conditions in the Malaysian manufacturing sector remained subdued midway through the third quarter of 2024, as production and new order inflows moderated at a marginal rate,” said Usamah Bhatti, economist at S&P Global Market Intelligence.
He noted the data are still consistent with Malaysia’s GDP growth seen in the second quarter of the year continuing.
However, he said further evidence was provided to indicate that conditions are likely to remain subdued in the short term.
According to him, firms opted to work through existing orders in the absence of new order growth, while firms also scaled back purchases, employment and stock holdings.
“Positively, firms remained confident that output would improve over the coming year, with the degree of confidence solid overall. That said, firms mentioned that they remained unsure regarding the speed of the recovery, with downside risks centered around a muted global economy,” he added. ■