Malaysia's manufacturing sector is poised for growth, influenced by the ongoing conflict in West Asia. According to S&P Global Market Intelligence economist Maryam Baluch, the manufacturing production in Malaysia rose for the second consecutive month in April 2026, marking the strongest growth since December 2021. This expansion is largely due to strategic stockpiling efforts by manufacturers and their clients, as they prepare for potential material shortages and rising prices linked to the conflict. The S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) reached 51.6, a four-year high, indicating a moderate improvement in the sector's health. However, the war has also led to significant supply chain disruptions, with input costs rising to a 45-month high, pushing firms to increase their prices substantially. Despite these challenges, the PMI remaining above the neutral mark of 50.0 for the second month suggests a resilient manufacturing sector adapting to the changing conditions.