Malaysia’s Manufacturing PMI dropped to 48.8 in March

Malaysia’s Manufacturing PMI dropped to 48.8 in March from 49.7 in February, signaling a sharper contraction in the sector. New orders declined at the steepest rate, while output, employment, and inventory levels also weakened.

Manufacturing PMI dropped

Business sentiment hit its lowest level since August 2023 due to uncertainty over demand recovery. The decline aligns with similar trends in Taiwan and South Korea, driven by global trade tensions.

The sector may remain weak in the coming months, impacted by the 24% reciprocal tariffs imposed by the US and tighter trade rules affecting regional economies like Vietnam, China, Taiwan, and South Korea. The extent of the slowdown will depend on how final demand adjusts to higher costs and prices.

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