Malaysia’s PMI May 2025

According to the latest report by by S&P Global Market Intelligence, the Purchasing Manager’s Index (PMI) for Malaysia’s manufacturing sector reached 48.8 in May 2025, below the 50-point threshold that separates growth from contraction.

In May, Malaysia's manufacturing sector showed signs of softening, with production levels easing slightly in response to subdued new orders. However, the pace of decline in both output and demand moderated to the slowest in three months, suggesting that overall conditions remained relatively stable.

Economic growth is expected to have continued at a similar pace to the first quarter, supported by a modest business environment. Manufacturers reported a gradual rise in input costs, the highest in six months, influenced by currency fluctuations and external price pressures, particularly from tariffs.

Despite these challenges, business sentiment remained generally positive, with firms anticipating increased output over the coming year.

At the same time, employment levels in the manufacturing sector held steady, marking the end of a seven-month period of job reductions. With new orders remaining subdued, firms were able to reduce outstanding workloads, leading to a slight decline in backlogs during the latest survey period.

The Association of Southeast Asian Nations (ASEAN) is a political and economic union of ten members, has 667 million people and a territory of 4.5 million Km2; is currently the third largest economy in Asia-Pacific and the fifth largest in the World. The ASEAN Economic Community (AEC) has a combined GDP of USD 4.2 trillion, according to estimates for 2024.