Malaysia’s PMI March 2025

According to the latest report by by S&P Global Market Intelligence, the Purchasing Manager’s Index (PMI) for Malaysia’s manufacturing sector reached 48.8 in February 2025, below the 50-point threshold that separates growth from contraction.

In March, purchasing activity, input inventories, and stocks of finished goods all declined, with the rate of reduction accelerating.

Despite subdued demand, delivery times lengthened for the eleventh consecutive month, primarily due to shipping delays, though the increase was only slight.

Input cost inflation eased for the second straight month, hitting its lowest point in 2025, influenced by rising raw material costs and a weaker exchange rate. Output prices remained largely stable, as some manufacturers passed on lower material costs to their customers.

Both production and employment softened in March, with declines accelerating slightly compared to February, as companies responded to weaker demand and chose not to replace employees who left voluntarily.

The Association of Southeast Asian Nations (ASEAN) is a political and economic union of ten members, has 667 million people and a territory of 4.5 million Km2; is currently the third largest economy in Asia-Pacific and the fifth largest in the World. The ASEAN Economic Community (AEC) has a combined GDP of USD 4.2 trillion, according to estimates for 2024.