Malaysia's manufacturing sector returns to growth in October, PMI at 51.0
KUALA LUMPUR: Malaysia’s manufacturing sector recorded a renewed improvement in its health in October 2026, with the S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) rising to 51.0 during the month, signalling a return to growth on the back of stronger new orders and output.
Malaysia's manufacturing sector rebounded in October 2026, with the S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI) reaching 51.0, marking a return to growth, according to the latest report by S&P Global Market Intelligence. The PMI surpassed the 49.9 recorded in September and marked the highest level since April 2026, reflecting the sector's health improvement over the past four of the past five survey periods.
S&P Global Market Intelligence economist Maryam Baluch attributed the positive trend to a surge in new orders, driven by heightened demand for artificial intelligence (AI) products, which fueled a rise in output. New orders witnessed their fastest growth in four-and-a-half years, reversing a brief moderation seen in September. Firms also expanded their staffing levels and increased purchases for the first time in three months to boost operating capacity.
However, persistent supply chain pressures led some companies to rely on finished goods stock to meet sales demands. Inflationary pressures, exacerbated by higher transport and material costs, dampened near-term sentiment, making manufacturers the least optimistic since April. Baluch highlighted external headwinds, such as economic and geopolitical uncertainties, as significant threats to the economy's ongoing resilience.
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