Malaysia's manufacturing activity showed a stronger recovery as the S&P Global Malaysia Manufacturing PMI data rose to 51.6 in April 2026 from 50.7 in March.
The reading was the highest in four years, signaling a modest expansion in the country's manufacturing sector after a period of uncertainty.
The increase was driven by output growth, which recorded the fastest pace since December 2021, as firms and customers stockpiled. The move was seen as a precautionary strategy in the wake of geopolitical tensions in the Middle East that could disrupt global supply chains.
New orders also rebounded after two months of moderation, although export demand remained weak for the second consecutive month.
Meanwhile, the labor market showed some improvement as hiring increased for the second consecutive month. However, operating pressures remain as work backlogs increased due to raw material shortages and delivery delays.
Purchasing activity also surged as firms sought to secure supplies ahead of schedule, but pre-production inventories continued to shrink.
On the cost side, inflationary pressures intensified as input costs rose to a 45-month high, driven by rising energy and raw material prices.
Firms also appeared to be passing on some of this cost pressure to consumers by raising output prices at a faster pace.
Despite the improvement in current activity, business sentiment reportedly fell to an eight-month low, reflecting ongoing concerns about the global economic outlook.
