Malaysia’s manufacturing sector faced mounting cost pressures in June 2025, with input prices rising at the fastest pace in seven months due to higher raw material costs and a weak exchange rate.
Manufacturers Raise Prices as Raw Material Costs Climb
The S&P Global Malaysia Manufacturing PMI rose to 49.3—its highest since February—signalling softer declines in production and demand. Despite remaining below the 50.0 neutral mark, firms raised output prices for the first time in six months.
Export demand and new orders declined modestly, while employment rose slightly after nine months of cuts. Businesses stay cautious, reducing inventories and purchases, though optimism remains due to upcoming product launches.
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