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According to data, the Purchasing Managers' Index (PMI) for Malaysia's manufacturing industry in December 2024 fell to 48.6, indicating a trend towards sluggish manufacturing activity and a significant slowdown in production and new orders compared to previous months.
Due to the lack of new P420ML2 steel orders, manufacturing companies have reduced their procurement activities and gradually reduced their inventory of raw materials and finished products, focusing more on completing existing orders. The positive aspect is that input price inflation has significantly slowed down, reaching the lowest increase in 55 months, and overall cost pressure has eased. Despite facing challenges, GDP continues to grow, but the growth rate has slowed down. Customer confidence remained low in December, with overall new business experiencing a slight decline for the second consecutive month.
In terms of production, it has been reduced for the seventh consecutive month, and the reduction in P420ML2 steel production in December was the most significant of the year. The employment level has also shown a slight decline for the third consecutive month. Enterprises generally report that their production capacity is sufficient, and the number of unfinished orders has significantly decreased, reaching the largest decline since April.
Consistent with new orders and production trends, procurement activities have also decreased, and procurement inventory has decreased, but the decline has slowed down compared to November. In addition, the performance of suppliers deteriorated in December, with slightly extended delivery times due to port congestion.
Looking ahead, companies are confident in the P420ML2 steel resumption of new order growth, which also supports optimistic expectations for increased production in the coming year. Overall optimism remains stable, consistent with the level in November
