KUALA LUMPUR, May 4 -- Malaysia's manufacturing sector recorded its strongest performance in four years this April, but economists warn the surge is largely driven by businesses frantically stockpiling goods to shield themselves from the fallout of the ongoing war in the Middle East.

The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI) jumped to 51.6 in April, up from 50.7 in March. This marks the second consecutive month the index has stayed above the neutral 50.0 threshold, signalling an overall improvement in the sector's health.

Output growth was the fastest seen since December 2021. However, S&P Global noted that this upturn was not entirely due to organic demand.

Instead, manufacturers and th...