The S&P Global Malaysia Manufacturing PMI rose to 49.3 in June 2025 from 48.8 in May, marking the highest reading since February. Both output and new orders shrank at the slowest pace in four months, while a drop in overseas demand was the mildest since the current downtrend began in December. Buying activity declined for the 34th month, and input inventories remained unchanged. Employment rose for the first time in nine months, even as backlogs of work fell for the 11th straight month, with its rate of depletion slightly faster than in May. On the cost front, input prices rose at the fastest pace since November 2024, due to higher raw material costs and unfavourable exchange rate fluctuations. Firms raised selling prices for the first time in six months and at the steepest rate since August 2024. Looking ahead, sentiment improved slightly, though it remained well below the series average, as optimism around new product launches was tempered by concerns over global economic conditions.