31/07/2026 10:41 am MYT
The manufacturing purchasing managers index (PMI) in Jul fell 1.1 percentage points from Jun to 49.2% (table 1). This was mainly due to lower readings in output and new orders. Indicating continued business confidence, the forward-looking production expectation index recorded a stable reading of 54.1%.

The seasonally adjusted business activity index of non-manufacturers fell to 49.0% in Jul due to weaker wholesale and financial services as well as construction activity (table 2). However, the forward-looking expectations of business activity index edged up to 55.4%.

Combining the manufacturing and non-manufacturing sectors, the composite purchasing managers index in Jun fell to 49.3% from 50.6% in the preceding month (figure 1). With the forward-looking indices remaining in positive territory, the Chinese economy remains resilient.

Note from Publisher
This week, prime minister Anwar announced that the Malaysian government will subsidize artificial intelligence (AI) software subscriptions for students. Up to 100,000 Malaysian youths will receive free subscriptions to leading AI software for three months. The aim is to provide practical, hands-on experience, enabling students to develop critical skills in areas such as coding and AI engineering. This is part of the government’s efforts to make Malaysia a regional AI hub by 2030.
However, subsidizing AI tools is only a tiny step. A nation's ability to adopt, develop, and scale AI will increasingly determine its economic competitiveness and attractiveness to investors. Malaysia, like many developing countries, is lagging in the adoption of AI.
To build strong AI capabilities, Malaysia must invest in high-quality STEM education, world-class research universities, accessible investment capital, robust digital infrastructure, and a stable legal and regulatory framework. Equally important is fostering close collaboration among government, academia, and industry to accelerate AI innovation and adoption. Achieving these goals requires sustained commitment, strategic investment, a clear long-term vision, and a well-defined national roadmap. Building a competitive AI ecosystem is a marathon, not a sprint, and success will depend on consistent execution over many years.
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