KUALA LUMPUR, July 3 — An export resurgence in April was not enough to prevent Malaysian manufacturing activity from falling to its lowest ever in Nikkei Malaysia’s Purchasing Managers Index (PMI) last month,

Malaysia recorded a PMI of 46.9 in June, down from 48.7 the month before. The index considers any score above 50 to indicate an improvement in the sector, while numbers below signify a contraction.

According to Nikkei Malaysia, factory output and new orders both fell sharply in June, with production dropping the most since the previous year.

"Down from 48.7 in May, the latest reading was the lowest in the survey’s five-year history. It also meant that business conditions deteriorated across the second quarter as a whole (average: 48.7).

Paul Smith, a senior economist at IHS Markit that compiles the survey, noted that Malaysia’s record-low PMI score also came two months after exports rose over 20 per cent year-on-year in April.

"Sharper falls in output and new work were the main factors behind the sector’s plight. With underlying demand worsening, goods producers took steps to limit workforce growth and streamline inventories — employment stagnated and stocks of purchases fell at a survey-record rate,” he added.

Malaysian manufacturers remained positive on the future despite the June results in the PMI, Nikkei Malaysia said based on its Future Output Index that remained "above average” since the start of 2016.

Elsewhere in Asean, the Philippines, Vietnam, Thailand, and Singapore all registered improvements to their manufacturing sector, with the Philippines topping the list for a second concurrent month at 53.9 on the PMI.

"By contrast, Indonesia and Myanmar fell back into decline after recording expansions in the previous month, though the rates of deterioration were marginal in both cases,” the report said.

However, it added that overall client demand across the region appeared to dwindle further, as new business growth was the weakest of the past five months.