01.10.202600:42:02UTC+00Malaysia Manufacturing Sector Contracts in September

Malaysia’s S&P Global Manufacturing PMI slipped to 49.9 in September 2026 from 50.2 in August, signalling the first deterioration in operating conditions since May. New orders fell for the first time in four months and at the sharpest rate since June 2025, while output growth lost further momentum, easing to its weakest pace in seven months.

Firms cut back on input purchases for a second consecutive month, pointing to sufficient inventory levels, constrained product availability, and softer inflows of new business. Supplier delivery times lengthened as vendor performance deteriorated at the fastest pace in three months.

The labour market offered a relative bright spot, with employment rising for a second straight month. Meanwhile, input cost inflation moderated for the fifth consecutive month to its lowest level since February, and output price inflation slowed to a seven-month low.

Despite these developments, business confidence remained muted. Sentiment regarding the year-ahead outlook weakened slightly, slipping to a five-month low.