The S&P Global Malaysia Manufacturing PMI rose slightly to 48.8 in May 2025 from April’s four-month low of 48.6, though it remained below the 50-mark for the 12th consecutive month, signaling continued contraction in factory activity. Both production and new orders fell at the slowest pace in three months, while new export orders declined for the sixth straight month but at the softest rate since February. Employment was unchanged, ending a seven-month run of job cuts. Backlogs eased slightly as firms worked through outstanding orders, and purchasing activity was reduced, though at the slowest pace in three months. Supplier performance improved for the first time since April 2024 amid muted input demand. On prices, input cost inflation hit a six-month high, due to the imposition of new US tariffs that pushed up costs. Business confidence softened, reaching its lowest level since June 2021, as firms expressed concern over US trade policies and ongoing labor shortages.