Malaysia's Near-term Manufacturing Outlook Remains Firm -- Kenanga Investment

KUALA LUMPUR, May 4 (Bernama) -- Malaysia’s manufacturing purchasing managers’ index (PMI), which rose to 51.6 in April 2026, signals a firm near-term outlook driven mainly by precautionary stockpiling rather than strong end-demand, said Kenanga Investment Bank Bhd.

However, it said that persistently high logistics, energy and material costs, alongside worsening delivery delays, would remain key headwinds as second-round effects from prolonged West Asia tensions begin to surface.

In a note on Malaysia Manufacturing PMI (April 2026), it said the manufacturing PMI expanded to 51.6 in April from 50.7 in March, the highest reading in four years. 

Meanwhile, on the gross domestic product forecast, the investment bank said growth should remain robust in the first half (1H) of 2026 and that it has maintained its 2026 growth forecast at 4.5 per cent for now.

It said this would be underpinned by festive-boost demand, resilient domestic demand and stockpiling activities.

“However, downside risks are rising in 2H 2026 as cost pressure and supply chain disruptions intensify. We expect domestic resilience to cushion the impact,” said the investment bank. 

-- BERNAMA