Malaysia Manufacturing PMI Hits 20-month High In January, Stronger Ringgit Cuts Input Costs -- S&P Global
KUALA LUMPUR, Feb 2 (Bernama) -- Malaysia saw its headline manufacturing purchasing managers’ index (PMI) rise to a 20-month high at 50.2 in January 2026 from 50.1 in December 2025, signalling a third consecutive monthly improvement in the health of its manufacturing sector.
S&P Global said the improvement was supported by a renewed rise in production, as well as a stabilisation in new factory orders. It noted that the ringgit appreciation also contributed to the first reduction in input costs since May 2020, and that output prices increased only modestly in January 2026.
S&P Global Market Intelligence economist Maryam Baluch said the stronger PMI signalled strengthening business conditions in the country for the third straight month in January, with production returning to growth, while demand conditions stabilised, supported by a renewed strengthening in demand from overseas.
“Moreover, companies reported a brighter outlook, and confidence was in fact among the highest in the series history,” she said in a statement.
Baluch noted that another key element from the latest survey was a first fall in input costs since May 2020 as firms benefited from the effects of a stronger ringgit. “A lack of inflationary pressures should hopefully help to support growth in the months ahead,” she added.
In a separate statement, S&P Global said the ASEAN manufacturing PMI increased slightly to 52.8 in January 2026 from 52.7 in December, supported by strong output and new orders.
Baluch said the January data indicated another solid improvement in operating conditions across the ASEAN manufacturing sector. “Business confidence reached its highest level since April 2023 and was only slightly below the long‑run survey average, indicating that companies expect the sector’s current growth trajectory to continue,” she added.
She said the growing signs of pressure on capacity suggested scope for job creation to accelerate after several periods of only modest employment growth, and firms have already increased their purchasing activity to support higher production requirements.
“However, the latest improvement was accompanied by a rise in inflationary pressures, which saw input costs and output charges increase. Further price build‑up in the coming months could pose a risk to the growth outlook, and monitoring inflation will therefore be essential moving forward,” she concluded.
-- BERNAMA
