KUALA LUMPUR (April 1): Malaysian manufacturers signalled the first expansion in employment levels in 12 months in the latest IHS Markit Malaysia Manufacturing Purchasing Managers’ Index (PMI) survey period in March 2021 as preparation for orders in the future reportedly required additional capacity and pushed the seasonally-adjusted employment index to the highest since April 2019 as the global economy contends with the impact of Covid-19 pandemic.
In a statement today, IHS Markit said despite headwinds from supply shortages and ongoing Covid-19 related issues, Malaysian manufacturers displayed a stronger degree of optimism regarding the outlook for output in the coming year.
“Firms recorded the highest level of positive sentiment for six months in March. Panel members attributed the improved outlook to hopes that a recovery in both domestic and external demand would boost production levels and sales over the next 12 months.
“Malaysian manufacturers took a further step on the path to recovery in March as operating conditions broadly stabilised during the month. Although production levels and new orders moderated further due to weak demand and ongoing supply chain disruption from the Covid-19 pandemic, employment levels returned to expansion territory for the first time since March 2020 as manufacturers grew increasingly optimistic about the year-ahead outlook, with hopes that an end to the pandemic would give rise to a wider recovery in demand.
“The headline IHS Markit Malaysia Manufacturing PMI – a composite single-figure indicator of manufacturing performance – rose from 47.7 in February to 49.9 in March. The latest reading pointed to a stabilisation in operating conditions, with the headline index reaching its highest since July 2020,” IHS Markit said.
