Malaysia's manufacturing sector expanded at its fastest pace in four years in April, supported by stronger output and a return to growth in new orders, according to data released Monday by S&P Global.

The S&P Global Malaysia Manufacturing Purchasing Managers' Index rose to 51.6 in April from 50.7 in March, marking a second straight month of expansion.

Output grew at the fastest pace since December 2021, while new orders increased as firms and clients built safety stocks amid uncertainty linked to the Middle East war.

Export orders declined for a second month, with firms citing weaker external demand tied to the conflict.

Purchasing activity and employment increased, while supplier delivery times lengthened at the sharpest rate in nearly four years, leading to a further decline in pre-production inventories.

Input costs rose to a 45-month high, driven by higher energy and material prices linked to the war, while selling prices increased at a record pace.

Business confidence eased to an eight-month low, with firms citing uncertainty surrounding the Middle East conflict.