The IHS Markit Malaysia Manufacturing PMI edged down to 48.4 in November 2020 from 48.5 in October. This was the fourth straight month of contraction as a rise in COVID-19 cases both domestically and around the world has led to reduced demand for Malaysian manufactured goods while supply chains struggled to deliver inputs in a timely manner. Both production and new order volumes moderated, yet the pace of deterioration was markedly softer than in April. Exports continued to decline, due to a resurgence of infections in key markets such as India was cited as a contributor to ongoing weakness in exports. Meanwhile, the rate of job shedding eased to the softest since May. On the price front, the rate of input cost inflation accelerated and was the fastest in four months. As a result, output charges continued to increase. Looking ahead, sentiment strengthened amid hopes that an end the pandemic would bring about a return to normal operating conditions and boost production. source: Markit Economics
Manufacturing Pmi in Malaysia is expected to be 50.00 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 50.00 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.