Malaysia’s manufacturing conditions ended 2025 in positive territory and raised the number of their workforce, still confident on output for the New Year.

The seasonally adjusted manufacturing purchasing managers index (PMI) was unchanged at 50.1 in December, according to S&P Global, which compiles the gauge. A reading above 50 points indicates activity expansion, while a reading below 50 signals contraction in the sector.

“The key highlight from the latest survey was that employment rose at one of the strongest rates on record, while there were also encouraging signs of stabilization in output,” said Maryam Baluch, an economist at S&P Global Market Intelligence.

The historical relationship between the PMI and official gross domestic product data suggests that Malaysia would see “solid” year – on – year economic growth in the final quarter, S&P Global said.

Malaysia’s economy expanded faster than expected in the third quarter, as domestic demand, its main growth engine, continued to hum while exports chugged on. The central bank is confident that growth for the whole of 2025 will be at the higher end of the projected range of 4 – 4.8%.

Findings from the latest survey show employment in the manufacturing sector rising for a second straight month in December, S&P Global said, noting that the latest uptick was the third-fastest since data collection began in July 2012 and the most pronounced in over seven years.

Despite signs of moderation in new order inflows in December, companies took on additional staff ahead of new projects and to replace leavers, according to respondents surveyed by S&P Global.

“Confidence in the outlook for output remained historically strong” even as the overall degree of optimism waned “notably,” S&P Global said. “Firms were hopeful that demand conditions will improve and support production growth.”

• The Edge Malaysia