Malaysia’s Industrial Production Index (IPI) expanded 5.0% year-on-year in August 2026, supported by stronger manufacturing and electricity output, according to the Department of Statistics Malaysia (DOSM).
Manufacturing output rose 7.4%, accelerating from 6.4% in July, while the electricity sector grew 9.0%, compared with 5.5% previously.
The mining sector, however, contracted 7.4%, weighed by declines in crude oil and condensate production of 12.2% and natural gas output of 4.3%.
On a month-on-month basis, the IPI rebounded 2.6% in August after falling 2.0% in July, led by a 3.4% increase in manufacturing and a 1.2% rise in electricity output.
Within manufacturing, the strongest gains came from electrical and electronics products, which surged 17.0%, followed by non-metallic mineral products, basic metals and fabricated metal products at 5.7%, and petroleum, chemical, rubber and plastic products at 2.6%.
Export-oriented industries grew 9.1%, up from 6.7% in July, driven by an 18.8% increase in the manufacture of computer, electronic and optical products and a 13.8% rise in machinery and equipment.
Domestic-oriented industries expanded 3.9%, supported by basic metals, which rose 9.9%, and food processing products, up 6.5%.
Manufacturing capacity utilisation also improved to 84.1% in August from 83.2% in July.
For the first eight months of 2026, Malaysia’s IPI increased 5.6%, compared with growth of 2.6% in the corresponding period last year.
