The IHS Markit Malaysia Manufacturing PMI declined to 48.9 in January of 2021 from 49.1 in December 2020. This was the sixth straight month of contraction as both output and new orders remained subdued, amid the stricter restrictions to contain the spread of the coronavirus. Meanwhile, new export orders saw a further moderation in January, and to a greater extent than total new business as disruption in international markets strengthened as infections rose. At the same time, manufacturers recorded a stabilisation in backlogs of work in the latest survey period following 28 months of depletion. Input costs increased to the fastest since May 2017. As a result, output charges accelerated to the quickest pace since April 2018. Looking ahead, sentiment weakened to the softest seen for five months, as worries about the impact of the pandemic intensified again during the month, in part due to concerns over recoveries being hindered by new variants of the virus. source: Markit Economics
Manufacturing PMI in Malaysia is expected to be 49.70 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing PMI in Malaysia to stand at 51.00 in 12 months time. In the long-term, the Malaysia Manufacturing PMI is projected to trend around 51.00 points in 2022, according to our econometric models.