The domestic Industrial Production Index (IPI) expanded at a faster pace of 8.2% year-on-year in April 2026, supported by stronger manufacturing activity, a recovery in mining output and higher electricity generation, according to the Department of Statistics Malaysia (DOSM).
The growth marked a significant acceleration from the 3.1% increase recorded in March, driven primarily by an 8.3% rise in the manufacturing sector and a turnaround in mining production, which grew 6.8% after contracting 6.5% in the previous month. Electricity generation also strengthened, increasing 10.5% compared with a year earlier.
Despite the strong annual performance, industrial output declined 3.4% month-on-month after posting a 9.3% expansion in March, weighed down by lower manufacturing and mining activity. Manufacturing output fell 4.4% from March levels, while mining slipped 1.6%. Electricity generation, however, continued to rise, increasing 2.1% during the month.
Export-Oriented Industries Remain Key Growth Driver
DOSM said export-oriented industries, which account for around two-thirds of the manufacturing sector, expanded 8.5% year-on-year in April, up from 6.7% growth in March.
The increase was mainly supported by continued double-digit growth in the manufacture of computer, electronic and optical products, which rose 14.6%. Other contributors included the manufacture of vegetable and animal oils and fats, which expanded 9.3%, and the manufacture of coke and refined petroleum products, which increased 4.2%.
The performance mirrored Malaysia’s export trends, with manufactured goods exports rising 11.7% in April.
On a monthly basis, however, export-oriented industries declined 8.7% after recording a strong 11.9% increase in March.
Domestic-Oriented Industries Accelerate
Domestic-oriented industries recorded stronger growth of 8.0% in April compared with 2.8% in the previous month.
The expansion was driven by a 13.5% increase in the manufacture of motor vehicles, trailers and semi-trailers, as well as an 8.6% rise in food manufacturing.
Construction-related manufacturing activities also contributed positively, with fabricated metal products output rising 5.8% and other non-metallic mineral products increasing 6.7%.
Unlike export-oriented industries, domestic-oriented manufacturers posted a 5.3% month-on-month increase, improving from 1.4% growth recorded in March.
Mining Rebounds on Strong Natural Gas Production
The mining sector returned to positive territory with a 6.8% year-on-year increase, largely due to a 16.6% surge in natural gas production, reversing a 3.4% decline in March.
Crude oil and condensate output remained weak, falling 6.4%, although the decline was less severe than the 11.3% contraction recorded previously.
Electricity generation also strengthened, growing 10.5% year-on-year compared with 4.8% growth in March.
Malaysia Outperforms Several Regional Peers
Globally, industrial production continued to expand across several major economies in April. Singapore recorded one of the strongest performances with growth of 17.6%, followed by Taiwan at 14.2%, Vietnam at 9.3%, China at 4.1%, Japan at 2.3%, South Korea at 1.5% and the United States at 1.4%.
Thailand was the only country among those tracked to register a contraction, with industrial output declining 0.4%.
Four-Month Industrial Growth at 5%
For the January-April 2026 period, Malaysia’s IPI increased 5.0% compared with the same period a year earlier.
Manufacturing output rose 6.3%, while electricity generation expanded 6.5%. The mining sector remained the only segment in negative territory for the cumulative period, declining 0.6%.
The latest figures indicate that Malaysia’s industrial sector continues to benefit from resilient export demand and improving domestic activity, although monthly fluctuations suggest manufacturers remain exposed to shifts in global demand and commodity production trends.
