The S&P Global Malaysia Manufacturing PMI inched down to 49.5 in October 2025 from 49.8 in September. This marked the 17th straight month of contraction and the sharpest downturn since June, as new orders declined for the first time in three months, reflecting a steeper fall in new export sales. As a result, output fell at the fastest pace in five months. Staffing levels were lowered again, although firms were able to reduce backlogs at the quickest pace since February. Moreover, manufacturers scaled back purchasing activity and inventory levels, while supplier delivery times lengthened for the second straight month amid ongoing shipping delays and material shortages. On the price front, input prices rose further, but firms opted to lower selling prices for the first time in six months as part of efforts to stimulate sales. Looking ahead, business confidence improved to its highest since April 2023, underpinned by expectations of a recovery in new orders.