Malaysia’s S&P Global Manufacturing PMI rose to 50.7 in March 2026 from 49.3 in February, its highest reading since April 2022. Output expanded at the fastest pace since December 2021, supported by stronger demand conditions and new contract wins. Employment also increased, ending a two-month period of job cuts, while firms reduced their order backlogs, reversing February’s slight build-up.
However, new orders continued to moderate for a second consecutive month, and international demand weakened for the first time in three months. In response, firms cut their purchasing activity for the first time in nine months.
Input cost inflation accelerated to its highest level since October 2024, driven by rising transport, energy, and material costs amid the conflict in the Middle East. Output price inflation climbed to a 45‑month high, exceeding its long-run average. Meanwhile, business sentiment regarding the year-ahead outlook deteriorated further, falling to a seven-month low.
