Malaysia's manufacturing activity remained in contraction in January but at a slightly softer pace than the previous month, S&P Global said in a report Monday.

The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers' Index edged up to 49.7 in February from 48.7 in January, but remained below the 50 mark that separates contraction from expansion.

Firms saw a rise in new orders for the first time in four months during February, which contributed to a softer moderation in production volumes.

On the price front, input price inflation remained largely unchanged from the month prior, while firms indicated a further decline in output charges, S&P noted.

Looking ahead, Malaysian manufacturers remained positive that production will rise in the next 12 months.