Latest news with #S&PGlobalMalaysia
The Star
02-07-2025
- Business
- The Star
Manufacturing edges closer to stabilisation
The seasonally adjusted S&P Global Malaysia manufacturing PMI rose to 49.3 in June, up from 48.8 in May. KUALA LUMPUR: Business conditions in the manufacturing sector moved closer to stabilisation at the end of the first half of 2025, according to S&P Global Market Intelligence. In a note, the firm said the latest S&P Global Malaysia manufacturing purchasing managers' index (PMI) reading suggested that the modest growth seen in official gross domestic product in the first quarter of 2025 was sustained into the second quarter. 'The data also suggests that the expansion in manufacturing production continued throughout the second quarter,' it said. The seasonally adjusted S&P Global Malaysia manufacturing PMI rose to 49.3 in June, up from 48.8 in May. S&P Global economist Usamah Bhatti said June data indicated a gradual move towards stabilisation in the health of the Malaysian manufacturing sector, although operating conditions remained challenging. — Bernama
The Star
01-07-2025
- Business
- The Star
Malaysia's manufacturing edges closer to stabilisation in 1H25 - S&P500
KUALA LUMPUR: Business conditions in the Malaysian manufacturing sector moved closer to stabilisation at the end of the first half of 2025, according to S&P Global Market Intelligence. In a note today, the firm said the latest S&P Global Malaysia manufacturing purchasing managers' index (PMI) reading suggests that the modest growth seen in official gross domestic product (GDP) statistics in the first quarter of 2025 was sustained into the second quarter. "The data also suggests that the expansion in manufacturing production continued throughout the second quarter,' it said. The seasonally adjusted S&P Global Malaysia manufacturing PMI rose to 49.3 in June, up from 48.8 in May. S&P Global economist Usamah Bhatti said June data indicated a gradual move towards stabilisation in the health of the Malaysian manufacturing sector, although operating conditions remained challenging. "Firms recorded sustained, albeit softer, moderations in demand and production - the softest in four months. Most encouragingly, firms raised their employment levels for the first time since last September. "That said, concerns were raised on the price front, with manufacturers recording the steepest increase in input prices for seven months. "In response, firms lifted their charges to the greatest extent in nearly a year in a bid to protect margins,' he said in a statement today. According to S&P Global, there was also a softer reduction in new export orders, while businesses signalled a renewed rise in employment during June. "Business confidence, meanwhile, was positive but remained well below the series average. "On the price front, input cost inflation gathered pace from May to reach the highest in seven months. In turn, firms signalled the strongest rise in output charges since August 2024,' it said. - Bernama
The Star
11-06-2025
- Business
- The Star
Cautious outlook for manufacturing sector
Sentiment in the manufacturing sector remained broadly positive in May, with firms expressing expectations of improved demand conditions over the next 12 months. PETALING JAYA: The manufacturing sector is likely to remain on a cautious footing in the near term, as lingering uncertainties over global trade policy and ongoing input cost pressures continue to weigh on production momentum. While the seasonally adjusted S&P Global Malaysia manufacturing purchasing managers' index (PMI) edged up slightly to 48.8 in May from 48.6 in the previous month, the improvement was modest and below the neutral 50-threshold – indicating that overall activity remained in contraction territory. According to TA Research, the sector's outlook has been shaped by a range of factors, including persistent weakness in global demand, particularly from advanced economies. 'In the absence of a meaningful recovery in global demand – particularly from advanced economies – Malaysia's industrial output and trade performance may continue to face external headwinds, especially as the temporary lift from front-loaded orders begins to fade,' the research house said in its report. TA Research noted that the manufacturing gross domestic product (GDP) grew by 4.1% in the first quarter of 2025, and second-quarter growth was expected to remain within a similar range. However, the average PMI reading for the January to May period stood at 48.9, slightly below the 49 recorded in the first four months, suggesting continued but modest pressure in the sector. The upcoming June PMI reading was highlighted as a key indicator. 'The upcoming June PMI reading will be pivotal, as any notable shift – either upward or downward – could influence the trajectory of official indicators,' TA Research explained. Sentiment in the manufacturing sector remained broadly positive in May, with firms expressing expectations of improved demand conditions over the next 12 months. Nonetheless, overall confidence slipped to its lowest level since June 2021. 'Expectations of improved demand conditions underpinned projections for output growth over the next 12 months. 'However, overall confidence slipped to its lowest level since June 2021, reflecting heightened uncertainty over US trade policy and ongoing shortages of skilled labour, which continue to weigh on near-term outlook,' the research house added. It also pointed to external factors contributing to the sector's subdued outlook. The recent imposition of US tariffs had exacerbated cost pressures, leading to a rise in input price inflation – the highest level in six months in May. Firms frequently attributed this inflationary pressure to adverse exchange rate movements and tariffs, particularly on imported inputs. Despite the input cost surge, manufacturers reported holding output prices steady in May, effectively ending a four-month sequence of price reductions. 'Production levels remained subdued in the latest survey period, with the seasonally adjusted output index continuing to register below the neutral 50-threshold,' TA Research said, noting that output had now been scaled back consistently for 12 consecutive months. Employment levels stabilised midway through the second quarter of 2025, effectively ending a seven-month streak of workforce reductions. However, subdued new order inflows allowed firms to continue clearing outstanding workloads, leading to a marginal decline in backlogs. 'Manufacturers also highlighted that subdued business conditions were compounded by a steady rise in operating expenses,' TA Research said. It maintained that the manufacturing sector would remain cautious in the near term, pending clearer signals from global demand and trade policy developments. The sector's resilience, it suggested, would depend on how effectively firms manage cost pressures and navigate external uncertainties.
The Star
03-06-2025
- Business
- The Star
Manufacturing PMI slightly higher at 48.8 in May
S&P Global Market Intelligence economist Usamah Bhatti said PMI data for May revealed that business conditions in the Malaysian manufacturing sector were muted. KUALA LUMPUR: The seasonally adjusted S&P Global Malaysia manufacturing purchasing manager's index (PMI) inched up to 48.8 in May, compared to 48.6 in April, signalling a sustained, though softer moderation in operating conditions. S&P Global Market Intelligence economist Usamah Bhatti said PMI data for May revealed that business conditions in the Malaysian manufacturing sector were muted as production levels were scaled back due to subdued new orders. 'That said, the rates of reduction in both measures eased to three-month lows and were only marginal overall. 'As such, the data indicated that gross domestic product growth is likely to have sustained at a similar pace as seen in the opening quarter of the year,' he said in a statement today. He noted that manufacturing firms also reported a gradual increase in cost burdens, with average input costs rising at the sharpest rate in six months. — Bernama
The Star
03-06-2025
- Business
- The Star
Malaysia's manufacturing PMI slightly higher at 48.8 in May 2025 - S&P Global
KUALA LUMPUR: The seasonally adjusted S&P Global Malaysia manufacturing purchasing manager's index (PMI) inched up to 48.8 in May, compared to 48.6 in April, signalling a sustained, though softer moderation in operating conditions. S&P Global Market Intelligence economist Usamah Bhatti said PMI data for May revealed that business conditions in the Malaysian manufacturing sector were muted as production levels were scaled back due to subdued new orders. "That said, the rates of reduction in both measures eased to three-month lows and were only marginal overall. "As such, the data indicated that gross domestic product (GDP) growth is likely to have sustained at a similar pace as seen in the opening quarter of the year,' he said in a statement today. He noted that manufacturing firms also reported a gradual increase in cost burdens, with average input costs rising at the sharpest rate in six months. Citing the survey evidence, he said the impact of unfavourable currency movements and US tariffs on raw material prices had pushed expenses higher, especially from abroad. "Sentiment stayed positive meanwhile, with firms expecting higher output in the coming year. "The degree of confidence receded from April to the lowest since mid-2021 amid concern regarding US trade policy and a lack of suitable workers, he said. Meanwhile, S&P Global also said Malaysian manufacturers reported that employment levels were unchanged midway through the second quarter, thereby ending a seven-month sequence of job shedding. Hence, it said the muted new order inflows enabled firms to continue working through outstanding business, and the level of backlogs was marginally lower in the latest survey month. - Bernama
