Malaysian shares closed slightly lower to end in the red on Monday, as the factory activity growth eased in August.

The FTSE Bursa Malaysia KLCI, the main gauge of Malaysian stocks, shed 23.85 points to end 1.4% lower at 1,702.03.

Operating conditions across Malaysia's manufacturing sector expanded at a softer pace in August versus the previous month, with the headline S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI) coming in at 50.2. The latest reading, which provides a gauge of factory sector conditions, compared with the 50.7 recorded in July. A reading above 50 indicates an expansion in sector performance compared to the prior month, while a figure below signals a contraction.

In corporate news, shares of Aemulus (KLSE:AEMULUS) slid over 2% on close after its unit Aemulus Corp. secured 14.7 million yuan in new orders from a customer in China for test systems serving the CMOS image sensor market.

Shares of HH Healthcare (KLSE:IHH, SGX:Q0F) slid over 1% on Tuesday's close after the Delhi High Court directed the appointment of a forensic auditor in relation to certain applications filed by Daiichi Sankyo (TYO:4568) against the company's unit, Fortis Healthcare (NSE:FORTIS, BOM:532843)