KUALA LUMPUR, Jan. 2 (Xinhua) -- Malaysia's manufacturers have stayed confident on the outlook for 2026 after the manufacturing purchasing managers' index (PMI) remained unchanged at 50.1 in December 2025.
S&P Global Market Intelligence said in a statement that the latest figure marked a further fractional strengthening in operating conditions across Malaysia's manufacturing sector.
Based on historical relationships between PMI figures and official data, the latest reading is consistent with further solid year-on-year expansions in both gross domestic product (GDP) and manufacturing production at the end of 2025.
"The key highlight from the latest survey was that employment rose at one of the strongest rates on record, while there were also encouraging signs of stabilization in output," said Maryam Baluch, an economist at S&P Global Market Intelligence.
However, she noted there were signs of moderation in new order inflows during December.
"Subdued demand conditions were reflected in softer price pressures, with inflationary trends remaining mild - partly due to the pause in growth of raw material purchasing activity. Moreover, several firms took the initiative to offer discounts to clients, aiming to stimulate sales," she added.
Looking ahead to the coming 12 months, confidence in the outlook for output remained historically strong, despite the overall degree of optimism waning notably since last November's 12-year high.
Firms were hopeful that demand conditions would improve and support production growth. ■
