The S&P Global Malaysia Manufacturing PMI rose slightly to 49.9 in August 2025 from 49.7 in the previous month, marking the highest reading since June 2024 and pointing to broad stabilisation in factory activity. Output expanded for the first time in 15 months, supported by the first increase in new orders in six months, with demand growth the strongest in three years. Export sales also remained positive for the second straight month, while purchasing activity picked up at a stronger pace. Still, firms voiced concerns over the recovery’s durability as employment levels fell again in August. Vendor performance stabilised after two months of longer lead times. On prices, input cost inflation softened, but output charges rose at the joint-fastest pace since August 2024. Meanwhile, business confidence weakened to its lowest since June 2021, weighed by worries over the global economic outlook.