KUALA LUMPUR – Malaysia’s manufacturing sector has shown signs of positive momentum in February 2023, with the seasonally adjusted S&P Global Malaysia manufacturing purchasing managers’ index rising to 48.4 from 46.5 in January, recording its highest reading in four months.
In a statement today, S&P Global said data on output and new orders in February 2023 signalled a much-improved situation compared to January 2023, prompting a near-stabilisation of purchasing activity and the maintenance of workforce numbers.
“A desire among firms to deplete backlogs of work was also noted,” it said, adding that the month under review also saw the greatest shortening of supplier lead times since March 2013, while inflationary pressures remained relatively muted.
S&P Global, which provides essential intelligence, pointed out that after having risen to a 41-month high in the previous survey period, business confidence held broadly steady in February 2023.
“Positive expectations for output reflected confidence that new orders will rise as market conditions improve,” it said.
On February 2023 performance, S&P Global Market Intelligence economics director Andrew Harker said both output and new orders moderated to a much lesser degree than that in January 2023, with firms looking to maintain their purchasing activity and workforce numbers.
“Operations are being helped by an improving supply-chain environment, with suppliers’ delivery times quickening to the greatest degree in almost a decade, as some of the difficulties of the past couple of years subside.
“With inflationary pressures also muted, we will hopefully see further improvements in demand and production in the months ahead,” he said. – Bernama, March 1, 2023
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