FX.co ★ Malaysia Manufacturing Growth Steady in July

Malaysia’s S&P Global Manufacturing PMI stood at 50.7 in July 2026, unchanged from June, indicating a marginal expansion in operating conditions. Growth in new orders accelerated to an eight‑month high, although output rose only slightly.

The increase in total new orders was supported by a renewed expansion in new export orders, reflecting stronger demand from overseas clients, particularly in Europe and the US. This improvement also nudged purchasing activity back into marginal growth. At the same time, supplier delivery times lengthened for the eighth consecutive month, signaling ongoing supply-side frictions.

Manufacturers reported having sufficient capacity to handle both current workloads and new incoming business, which was evident in a renewed decline in backlogs of work. In response, firms scaled back employment levels in July.

Cost pressures remained relatively muted: both input costs and output charges rose at their weakest rates in five months. Even so, business sentiment softened, with confidence slipping to a three‑month low and remaining subdued by historical standards, as geopolitical tensions continued to cloud the outlook.