The IHS Markit Malaysia Manufacturing PMI slumped to 31.3 in April 2020 from 48.4 in March. This was the fourth straight month of contraction in the sector and the steepest on record, as the negative economic impact from the COVID-19 outbreak intensified. Lockdown measures both domestically and overseas had a considerable impact on demand, which fell at a survey-record pace; while output fell at an unprecedented rate. Also, buying levels shrank the most on record, with employment declining modestly, amid the movement control order. Prices data showed a deflationary trend. Prices paid for raw materials and other inputs fell when compared to March. This gave firms more room to reduce output charges, which fell at the quickest rate since January 2015. Finally, confidence edged up into positive territory as companies anticipate an economic recovery over the course of the coming year.
Manufacturing Pmi in Malaysia is expected to be 43.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing Pmi in Malaysia to stand at 49.70 in 12 months time. In the long-term, the Malaysia Manufacturing Pmi is projected to trend around 49.40 points in 2021 and 48.90 points in 2022, according to our econometric models.