Malaysia’s manufacturing IPP hits 20-month high in January – S&P Global
KUALA LUMPUR: Malaysia recorded an increase in the overall manufacturing Purchasing Managers’ Index (PMI) to the highest level in 20 months, at 50.2 in January 2026 from 50.1 recorded in December 2025.
The data thus indicated the third consecutive monthly increase in the positive performance of the Malaysian manufacturing sector.
The strengthening ringgit also contributed to the first decline in input costs since May 2020, while output prices only increased moderately in January 2026, he added.
“In addition, companies are reporting brighter prospects, and confidence levels are actually among the highest in the history of this survey series,” he said in a statement.
He said another important element from the latest survey was the first decline in input costs since May 2020 as companies benefited from the impact of the strengthening ringgit.
“The lack of inflationary pressure is expected to help support growth in the coming months,” he said.
Baluch said January data showed another improvement in operating conditions across the ASEAN manufacturing sector.
“Business confidence reached its highest level since April 2023 and is only slightly below the survey’s long-term average, indicating that companies expect the sector’s current growth trajectory to continue,” he said.
He said signs of increasing pressure on capacity indicated the scope for job creation was accelerating after several periods of modest job growth.
Companies have also increased their purchasing activities to support higher production needs, he said.
“However, this recent strengthening has been accompanied by rising inflationary pressures, which have seen input costs and output charges rise. Further price increases in the coming months could pose risks to growth prospects, hence monitoring inflation will be important going forward,” he said.
— BERNAMA
