FX.co ★ Malaysia’s Manufacturing PMI Slips Below Expansion Threshold in February

Malaysia’s manufacturing sector showed signs of softening in February 2026, as the Manufacturing Purchasing Managers’ Index (PMI) edged down to 49.30 from 50.20 in January 2026. The decline pushed the indicator back below the 50-point threshold that separates expansion from contraction in the manufacturing economy.

On a month-over-month basis, the February reading reflects a deterioration in conditions compared with January, when the PMI had just moved into marginal expansion territory. The February figure suggests that the improvement seen at the start of the year was not sustained, pointing to renewed pressure on production, new orders, or both.

The data, updated on 2 March 2026, indicate that while the sector remains close to the neutral 50 mark, momentum has weakened. Market participants and policymakers will be watching upcoming releases closely to determine whether this dip signals a short-term pause in recovery or the start of a more persistent slowdown in Malaysia’s manufacturing activity.