According to IHS Markit, Malaysian manufacturers pointed to a renewed path towards stable operating conditions in the final month of 2020.
"Although production volumes and sales moderated further, employment levels were broadly stable for the first time since May," it said.
However, ongoing disruption caused by the COVID-19 pandemic presented difficulties in sourcing and receiving raw materials, resulting in longer delivery times and a sharp increase in input costs faced by firms in the Malaysian manufacturing sector.
Commenting on the latest survey results, IHS Markit chief business economist Chris Williamson said Malaysia's manufacturers continued to report challenging conditions in December, with the COVID-19 pandemic not only hitting demand both at home and in key export markets, but also causing increasingly severe supply chain delays, especially for imported goods.
"Global shipping delays and shortages of inputs consequently acted as an additional constraint on production. Raw material prices have also spiked higher amid these global shortages, pushing manufacturers' selling prices higher at a rate not seen for 32 months," he said.
"Encouragingly, job losses have eased and manufacturers remain optimistic on balance that output will continue to recover in 2021, led by the roll out of vaccines helping to restore trading to more normal conditions," he added.
Latest comments