Malaysian manufacturers seem to be withstanding the global economic headwinds superbly, as the latest manufacturing data by DOSM indicates that the sector recorded stronger sales growth in June 2026, with sales value rising 9.8% year-on-year to RM177.0 billion.
According to DOSM, the growth accelerated from the 8.9% expansion recorded in May, supported mainly by continued strength in the electrical and electronics (E&E) products segment.
The E&E products sub-sector recorded robust sales growth of 18.7% in June, although this moderated from 24.1% in May.
Growth was also supported by the petroleum, chemical, rubber and plastic products sub-sector, which expanded 4.8%, broadly in line with the 4.9% growth recorded in May.
Meanwhile, the food, beverages and tobacco sub-sector rebounded, growing 2.2% in June after contracting 5.3% in the previous month.
On a month-on-month basis, total manufacturing sales increased 2.5% from RM172.7 billion in May.
Export-oriented industries, which accounted for 73% of total manufacturing sales, recorded 10.6% year-on-year growth in June.
The expansion was led by the manufacture of computer, electronics and optical products, which grew 20.7%, while the manufacture of coke and refined petroleum products increased 5.4%.
The manufacture of machinery and equipment not elsewhere classified also recorded stronger growth of 9.9%, compared with 5.2% in May.
On a month-on-month basis, sales by export-oriented industries increased 2.4%.
Domestic-oriented industries also strengthened significantly, with sales expanding 7.7% year-on-year in June compared with just 0.2% in May.
The improvement was largely driven by the manufacture of motor vehicles, trailers and semi-trailers, which rebounded strongly with 14% growth after contracting 9.1% in May.
The manufacture of processed food products also recovered, rising 7% after declining 4.5% in the preceding month.
On a month-on-month basis, sales of domestic-oriented industries increased 2.7%.
The number of employees in the manufacturing sector stood at 2.4 million in June, representing a 1.2% increase from a year earlier.
The increase was led by the food, beverages and tobacco sub-sector, where employment grew 2.1%.
Employment in both the E&E products and non-metallic mineral products, basic metal and fabricated metal products sub-sectors increased 1.6%.
However, total manufacturing employment declined marginally by 0.2% month-on-month.
Meanwhile, salaries and wages paid by the manufacturing sector increased 3.1% year-on-year to RM8.59 billion, accelerating from 2.9% growth in May.
On a monthly basis, total salaries and wages rose 0.3%.
Sales value per employee stood at RM73,127, up 8.5% year-on-year, while average salaries and wages per employee increased 1.9% to RM3,547.
For the second quarter of 2026, manufacturing sales value increased 9.3% to RM524.8 billion, accelerating significantly from the 5.5% growth recorded in the first quarter.
The sector employed 2.4 million people during the quarter, up 1.2%, while salaries and wages increased 3.1% to RM25.7 billion.
Sales value per employee rose 8% to RM216,777.
For the first half of 2026, cumulative manufacturing sales reached RM1.03 trillion, representing a 7.4% increase compared with the same period last year, when growth stood at 3.7%.
Employment increased 1.2% to 2.4 million, while salaries and wages rose 2.7% to RM51.6 billion.
Sales value per employee for the first six months stood at RM423,913, an increase of 6.1% year-on-year.
