Malaysia Manufacturing PMI Steady at 50.1 in December, Boosted by Record Employment Surge

Malaysia’s manufacturing sector ended 2025 on a stable note, with the seasonally adjusted S&P Global Malaysia Manufacturing PMI holding steady at 50.1 in December, signalling a slight improvement in operating conditions for the second consecutive month. The reading aligns with continued solid year-on-year GDP and production growth.

A standout highlight was employment, which rose solidly at the third-strongest pace since data collection began in 2012—the fastest in over seven years—as firms hired ahead of new projects and to replace staff.

Malaysia Manufacturing PMI

Production moderated only marginally, nearing stabilisation after four months of easing. However, new orders slowed anew, with subdued demand leading to a fourth straight decline in export orders. This prompted firms to halt input purchases, marking the first stagnation since June.

Input cost and output price inflation eased further, remaining modest, as some companies offered discounts to stimulate sales.

Economist Maryam Baluch noted encouraging output stabilisation but cautioned on moderating demand.