2026.07.0100:41:20UTC+00Malaysia Manufacturing Sector Returns to Growth

Malaysia’s S&P Global Manufacturing PMI rose to 50.7 in June 2026 from 49.0 in May, signaling a modest improvement in manufacturing conditions. Both new orders and output returned to expansion in June after posting slight contractions in the previous month.

After marginal increases in purchasing activity in April and May, firms kept their buying of inputs broadly unchanged in June. While renewed growth in new orders led some manufacturers to step up purchases of inputs and raw materials, others reported that demand remained too weak to justify higher buying. Employment levels were also largely stable during the month.

Supplier delivery times continued to lengthen in June, reflecting ongoing material shortages and the impact of the current geopolitical environment. On the cost side, input price inflation eased to a three-month low, although firms raised their selling prices more than they did in May. Looking ahead, manufacturers remained optimistic that output will increase over the coming 12 months.