KUALA LUMPUR, July 9 — Malaysia’s Industrial Production Index (IPI) rose by 8.4 per cent year-on-year (y-o-y) in May 2026, sustaining a positive momentum in all sectors, said the Malaysian Statistics Department (DOSM).
The rise followed an 8.2 per cent growth in April 2026.
"Growth in the manufacturing output led the way, with a 6.6 per cent increase (April 2026: 8.3 per cent), coupled with a 19.8 per cent climb in the mining sector’s production (April 2026: 6.8 per cent).
"Moreover, the electricity sector grew by 4.2 per cent (April 2026: 10.5 per cent). The IPI recorded a 1.3 per cent turnaround against a negative 3.4 per cent in April 2026," it said in a statement today.
The manufacturing sector's May production was primarily driven by growth in export-oriented industries, which expanded by 8.8 per cent, up from 8.5 per cent in April 2026.
DOSM added that the rise was predominantly observed in the manufacture of computers, electronics and optical products, which grew by 17 per cent. Manufacturing of coke and refined petroleum products rose by 7.8 per cent.
"The y-o-y expansion of export-oriented industries mirrored the growth in manufactured goods exports in May.
On a month-on-month (m-o-m) basis, export-oriented industries recorded a 5.7 per cent turnaround, compared with an 8.7 per cent decline in April 2026.
Domestic-oriented industries grew modestly by two per cent, compared with the eight per cent rise recorded in April 2026, supported by stable momentum in the manufacture of fabricated metal products, except machinery and equipment, and basic metals manufacturing, which grew by 4.5 per cent and 7.3 per cent, respectively.
Domestic-oriented industries recorded a 4.6 per cent fall, compared with a positive 5.3 per cent in the previous month.
It said that the robust 19.8 per cent growth in the mining sector in May 2026 was supported by natural gas, accelerating output by 37.4 per cent (April 2026: 16.6 per cent).
Meanwhile, crude oil and condensate production fell by 0.7 per cent (April 2026: -6.4 per cent). The mining index fell by 2.2 per cent after registering a negative growth of 1.6 per cent in April.
"Moreover, the generation of electricity grew by 4.2 per cent y-o-y in May 2026 (April 2026: 10.5 per cent). On a m-o-m basis, the electricity index grew by 1.3 per cent against 2.1 per cent in the prior month," DOSM said.
Globally, the IPI for several countries recorded slower growth in May 2026, including Singapore (13 per cent) and Taiwan (11.8 per cent), while increases were recorded in China (4.5 per cent), the United States (1.7 per cent), and Vietnam (10.1 per cent).
In summary, the IPI expanded by 5.7 per cent between January and May 2026 compared with a year ago, supported by growth in the manufacturing sector (6.4 per cent), the electricity sector (6.1 per cent), and the mining sector (2.8 per cent).
