MALAYSIA’S PMI RISES AS NOVEMBER NEW ORDERS HIT THREE-YEAR HIGH

KUALA LUMPUR, Dec 2 (Bernama) -- Malaysia’s manufacturing sector Purchasing Managers’ Index (PMI) rose to 50.1 in November versus 49.5 in October, supported by a surge in new orders that reached their highest level in more than three years, said MBSB Investment Bank Bhd (MBSB IB).

Citing S&P Global’s latest survey, MBSB IB said the PMI reached its highest level since May 2024,  signalling the first expansion in factory activity after 17 consecutive months of contraction.

“New orders grew for the third time in four months, recording the fastest pace since April 2022, while foreign demand eased slightly.

“Firms increased purchasing for the fifth straight month, supported by the first improvement in vendor performance since May 2025,” it said in a research note today.

MBSB IB added that pre-production inventories declined for the fifth month as firms drew down stocks for production, while employment expanded at the fastest pace since September 2022—ending four months of job cuts—and backlogs fell at the sharpest rate since October 2023.

On the price front, the bank said input cost inflation rose to a four-month high due to higher raw material prices, leading to the sharpest increase in output charges in 15 months.

It further noted that upbeat sentiment may also reflect the United States-Malaysia Reciprocal Trade Agreement, which grants market access and circumvents 18 per cent tariffs on selected goods.

“Earlier data showed industrial production growth accelerating to 5.7 per cent year-on-year (y-o-y) in September 2025, up from 4.8 per cent in August, marking the fastest expansion in industrial activity since July 2024.

“We expect a stronger reading for October 2025 Industrial Production Index (IPI), supported by the sharp rise in exports of 15.7 per cent y-o-y, compared with 12.5 per cent in September, and the robust November PMI, which signals a potential uptrend in IPI growth and stronger momentum ahead,” it said.

--BERNAMA