Malaysia Manufacturing Activity Continues To Shrink

(RTTNews) - Malaysia's manufacturing activity continued to contract at the end of the year on muted customer demand and sustained fall in output, survey results from S&P Global showed on Tuesday.

The manufacturing Purchasing Managers' Index posted at 47.8 in December, slipping from 47.9 in November.

The reading has remained below 50.0 to suggest contraction. Nonetheless, the decline was the slowest since August 2021.

The survey revealed declines in both new orders and foreign demand. Reflecting softer demand, manufacturers reduced their production.

Concurrently, employment softened for the second time in the last three months. Respondents cited lower staffing levels to voluntary resignations.

Average cost burdens faced by Malaysian goods producers increased only moderately. Meanwhile, firms lowered their selling prices in December for the first time since May 2020.

Manufacturers were more optimistic about production over the coming twelve months on expectations that market conditions would improve in the new year.