KUALA LUMPUR: Malaysia’s manufacturing purchasing managers’ index (PMI) fell to 48.6 in December 2024 from 49.2 in November, indicating a further slowdown in the sector, according to SandP Global on Thursday.
According to Namibia Press Agency, the decline reflects a modest deceleration in the manufacturing industry, marking the most significant contraction since March. The recent figures point to subdued demand and a modest reduction in production, with firms scaling back operations at the steepest rate observed over the past year.
The data also suggests that Malaysia’s gross domestic product (GDP) growth in the fourth quarter of the year continued, though at a slower pace, while indicating steady year-on-year improvements in official manufacturing production. Usamah Bhatti, an economist at SandP Global Market Intelligence, highlighted the ongoing challenges facing the sector, stating that conditions are likely to remain muted in the short term.
“Firms opted to work through existing orders in the absence of new order growth, while also scaling back employment, purchases, and stock holdings,” Bhatti added. The adjustments reflect strategic responses by manufacturers to the current economic climate, as they navigate through a period of reduced demand and operational scaling.
