GEORGE TOWN, Oct 1 — Malaysia’s manufacturing sector has remained muted at the end of the third quarter of 2024, according to S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI®).
The subdued business conditions were largely due to stagnant new orders that led to the scaling back of production levels.
S&P Global Market Intelligence economist Usamah Bhatti said the rate of reduction in output was only modest while demand is now closer to stabilisation.
“As such, the data indicated that GDP growth in Q3 continued at a similar trajectory to that seen in the second quarter,” he said.
“It was also encouraging to see employment conditions improve, as manufacturers acquired more staff in preparation for a purported demand recovery,” he added.
According to the report, employment levels increased in September, the first since May and this greater workforce capacity allowed companies to continue to work through outstanding business.
“Sentiment stayed positive, with firms expecting higher output in the coming year,” he said.
He said the level of confidence strengthened to the highest since January amid hopes of improved demand conditions in the year ahead.
