KUALA LUMPUR, March 10 — Malaysia’s Industrial Production Index (IPI) rose by 5.9 per cent year-on-year (y-o-y) in January 2026, supported mainly by stronger performance in the manufacturing sector, said the Malaysian Statistics Department (DOSM).
Chief Statistician Datuk Seri Mohd Uzir Mahidin said the IPI expanded 5.9 per cent in January after registering a 4.8 per cent growth in the previous month.
"This was supported by the manufacturing sector, which increased by 7.3 per cent (December 2025: 6.7 per cent), coupled with a marginal increase of 0.1 per cent in the mining sector production (December 2025: -2.5 per cent). Additionally, the electricity output grew by 6.3 per cent in January (December 2025: 3.8 per cent).
"In terms of month-on-month, the IPI rose slightly by 0.7 per cent from 0.2 per cent registered in December 2025," he said in a statement following the release of the January IPI today.
Uzir added that the output of export-oriented industries, which accounted for two-thirds of the manufacturing sector, expanded 7.8 per cent in January 2026, up from 7.5 per cent in the previous month.
The growth was driven mainly by the manufacture of computers, electronics, and optical products, followed by vegetable and animal oils and fats, which increased by 17.2 per cent and 20.7 per cent, respectively.
"The y-o-y expansion mirrored the country's better export performance, which increased by 19.6 per cent in January 2026,” he said.
Compared with December 2025, export-oriented industries continued to show -0.7 per cent growth, after recording a -0.1 per cent growth in the previous month.
Meanwhile, domestically oriented industries expanded 6.4 per cent, up from 5.2 per cent in December 2025.
"This growth was primarily led by the manufacture of food processing products, which grew by 8.9 per cent, followed by an increase in the manufacture of fabricated metal products, except machinery and equipment at 8.5 per cent," said Uzir.
In contrast to the preceding month, domestic-oriented industries increased by 2.4 per cent, up from 1.0 per cent in December 2025.
He noted that the mining sector recorded a turnaround with production, rising 0.1 per cent in January 2026 compared with minus 2.5 per cent previously. This was supported by the crude oil and condensate index, which grew at 3.8 per cent (December 2025: 6.4 per cent).
Meanwhile, natural gas output continued to decline, albeit at a lower rate of -2.1 per cent (December 2025: -7.9 per cent). On a month-on-month basis, the mining index rose 2.1 per cent against a contraction of 0.9 per cent recorded in December 2025.
Uzir said electricity generation also expanded 6.3 per cent y-o-y in January 2026 after recording a 3.8 per cent increase in the preceding month.
“In comparison with December 2025, the electricity index rose marginally by 0.2 per cent after registering a positive 2.2 per cent in the previous month,” he said.
Globally, the IPI for several countries increased, including China (5.2 per cent), the United States (2.3 per cent), South Korea (7.1 per cent), Singapore (16.6 per cent), Vietnam (21.5 per cent), and Taiwan (28.5 per cent).
Thailand (1.5 per cent) and Japan (2.3 per cent) also recorded increases, albeit with smaller positive growth during the month.
