The latest report by DOSM released today indicates that the Industrial Production Index (IPI) expanded by 8.4% year-on-year in May 2026, extending the positive momentum recorded in April and reflecting continued strength across the manufacturing, mining and electricity sectors.
The reading was slightly higher than the 8.2% growth recorded in April, supported primarily by a sharp rebound in mining activity and sustained expansion in manufacturing output.
On a month-on-month basis, the IPI returned to growth, rising 1.3% after contracting 3.4% in April.
The mining sector recorded the strongest performance, with production surging 19.8% in May, significantly outperforming the 6.8% growth recorded a month earlier.
The expansion was largely driven by a 37.4% increase in natural gas production, while crude oil and condensate output continued to decline, albeit at a slower pace of 0.7%, compared with a 6.4% contraction in April.
Despite the strong annual growth, mining output slipped 2.2% month-on-month, following a 1.6% decline in April.
The manufacturing sector continued to underpin industrial activity, with output increasing 6.6% year-on-year, although moderating slightly from the 8.3% growth registered in April.
Export-oriented industries remained the key growth driver, expanding 8.8%, supported by robust demand for electrical and electronics products.
Among the strongest performers were the manufacture of computer, electronic and optical products, which maintained double-digit growth of 17.0%, while the manufacture of coke and refined petroleum products increased 7.8%.
The strong performance mirrored Malaysia’s continued growth in manufactured exports during the month.
On a monthly basis, export-oriented industries rebounded 5.7%, reversing the 8.7% decline recorded in April.
Meanwhile, domestic-oriented industries grew at a more modest 2.0%, slowing from 8.0% previously.
Growth was supported by the manufacture of fabricated metal products, except machinery and equipment, which rose 4.5%, and the manufacture of basic metals, which expanded 7.3%.
However, domestic-oriented production fell 4.6% month-on-month, reversing April’s 5.3% increase.
Electricity generation increased 4.2% year-on-year in May, easing from 10.5% growth in April.
On a monthly basis, electricity output rose 1.3%, following a 2.1% increase in the preceding month.
For the January–May 2026 period, Malaysia’s Industrial Production Index increased 5.7% compared with the corresponding period last year.
Manufacturing output expanded 6.4%, while electricity generation rose 6.1%. Mining production also remained positive, recording cumulative growth of 2.8% during the first five months of the year.
