Malaysia manufacturing PMI increased to 49.1 in December from 48.4 in November. Manufacturing purchasing managers’ index rose to a four-month high in December, indicating an improvement in the country’s manufacturing sector. PMI suggested that output and new orders remained subdued, as market demand continued to be dampened by the Covid-19 pandemic.
Foreign demand for Malaysian manufactured goods also contracted, albeit at a slower the pace as some companies reported returning orders from markets outside Asia. Encouragingly, job losses have eased and manufacturers remain optimistic on balance that output will continue to recover in 2021, led by the roll out of vaccines helping to restore trading to more normal conditions.