A reading above 50 shows growth in the sector.
Robust client demand led manufacturers to increase production for the fourth straight month in September, and at the fastest pace in more than nine years, driven by consumer and capital goods.
The Nikkei Malaysia Manufacturing Purchasing Managers' Index, or PMI, fell back into contraction at 49.9 in September, down from 50.4 in August.
Meanwhile, the pace of job creation eased to the weakest since October 2016. Rates of inflation for both input costs and selling prices quickened to the fastest since May.
The weak pound was cited by some firms for helping to boost exports, though its impact has diminished compared to earlier this year. Currency weakness was reportedly the main reason leading to higher input costs (the rupiah being under pressure - like other emerging market currencies - amid renewed U.S. dollar strength).
Positive outlook Confidence in United Kingdom manufacturing is also high, with over 51 percent of manufacturing companies surveyed expecting further growth in production over the next 12 months.
"This will depend on factors such as actual fulfilment and value of orders, as well as cost pressures faced by businesses".
Aashna Dodhia, Economist at IHS Markit said: "Manufacturing conditions across Indonesia sustained its tepid recovery from July's deterioration (strongest in 12 months) at the end of the third quarter".
"This is also happening alongside rising commodities prices, which are contributing to inflationary pressures across the supply chain". Longer lead times stemmed from a lack of raw materials among vendors, according to anecdotal evidence.
The Australian Dollar Pound (AUD GBP) exchange rate advanced at the start of this week's session as Sterling was undermined by a weak Manufacturing PMI.
This is while a Thursday speech from European Central Bank chief Mario Draghi and Friday's monthly United States nonfarm payrolls number will also influence Sterling pairs from the opposite direction.
Non-metallic mineral products (75.5 points) hit a new record high, reflecting the strength of demand for building-related products. "There were also reports of rising cost inflation affecting production levels".