Malaysia’s manufacturing sector strengthened in January 2026, with the headline PMI rising to 50.2, its highest in 20 months, marking the third consecutive monthly improvement. S&P Global attributed the growth to renewed production, stabilised new orders, and the ringgit’s appreciation, which led to the first fall in input costs since May 2020.
Ringgit Strength Helps Manufacturing Sector
Output prices rose only modestly. Economist Maryam Baluch noted that business confidence was among the highest in survey history, supported by stronger overseas demand. Across ASEAN, the PMI edged up to 52.8, with firms reporting higher purchasing activity, though inflationary pressures remain a risk to growth.
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