KUALA LUMPUR, Dec 1 — Malaysia’s manufacturing sector expanded in November for the first time in 18 months as new orders surged to a multi-year high.

The S&P Global Malaysia Manufacturing PMI rose to 50.1, edging above the 50-point mark that separates growth from contraction.

The survey showed new order inflows at their fastest rate since April 2022, with firms attributing the pick-up to stronger client confidence and the launch of new products.

“The degree of optimism was at its highest since July 2013, underpinned by hopes of business expansion, new product launches and rising customer numbers,” said Usamah Bhatti, economist at S&P Global Market Intelligence.

The improvement also softened the slowdown in export sales, which moved closer to stability in November.

Manufacturers reported a milder decline in production, despite holding back on output increases.

Some companies focused on replenishing stocks, leading to the first rise in post-production inventories in 41 months.

Purchasing activity grew for the fifth consecutive month as firms anticipated stronger demand ahead.

Employment levels also rose for the first time since June, breaking a four-month streak of job cuts.

Survey respondents noted that renewed demand encouraged them to expand their workforce.

Backlogs of work, meanwhile, shrank at their fastest pace since October 2023, as firms had sufficient capacity to clear existing orders.

Input costs climbed at a quicker pace because of higher raw material prices and tax pressures.

This led to the strongest increase in output charges since August 2024, as firms sought to protect their margins.

Bhatti said that although production remained subdued, manufacturers were buoyed by expectations of a stronger year ahead.