Malaysia Industrial Output Growth at 4-Month Low

Industrial production in Malaysia climbed 4.8% year on year in December 2025, accelerating from 4.3% growth in the previous month, which was the softest expansion in eleven months, primarily driven by faster growth in manufacturing (6.7% vs 4.9% in November) and electricity (3.7% vs 2.7%). Within manufacturing, growth was mainly boosted by stronger output in electrical and electronics (12.8% vs 1.8%), as well as food, beverages, and tobacco (11.2% vs 8.0%). However, mining output fell by 2.5% in December, reversing a 2.3% increase in the previous month, weighed down by a decline in natural gas output (-7.9% vs 1.0%), while crude oil and condensate production grew by 6.4%. For the full year of 2025, industrial production remained broadly stable, growing by 3.6% (vs 3.7% in 2024), with all sectors posting positive growth. On a seasonally adjusted monthly basis, industrial activity rose by 1.0% in December, after a 1.3% drop in the preceding period.

Industrial production in Malaysia increased by 4.3% year-on-year in November 2025, below market expectations of a 5.3% rise and slowing from a 6% growth in the previous month. This marked the softest expansion since July, primarily driven by slower growth in mining output (2.3% vs 5.8% in October), particularly in the extraction of crude oils and condensates (4.3% vs 8.8%) and natural gas (1% vs 3.9%). At the same time, manufacturing production slowed (4.9% vs 6.5%), due to a decline in the manufacture of petroleum, chemical, rubber and plastic products (-1.8% vs -0.3%) and softer increases in wood products, furniture, paper products, printing (2.9% vs 4.9%). Meanwhile, electricity output accelerated by 2.7% compared to 1.8% recorded in the previous month. On a seasonally adjusted monthly basis, industrial activity fell by 1.3% in November, reversing an upwardly revised 0.7% gain in the preceding period.

Industrial production in Malaysia grew by 6% year-on-year in October 2025, exceeding market expectations of a 5.2% increase and the previous month's 5.7% rise. This marked the strongest growth in industrial activity since September 2022, boosted by manufacturing output, which climbed to a fourteen-month high of 6.5% from 5% in the prior month. Key contributors within the manufacturing sector included computer, electronics & optical products (14.2% vs 8.8%), vegetable & animal oils & fats (12.9% vs 7.4%), machinery and equipment (11.3% vs 9.6%), and furniture (9.7% vs 8%). Meanwhile, production growth slowed in the mining sub-index (5.8% vs 10.2%), with softer increases in the output of crude oils and condensates (8.8% vs 13%) and natural gas (3.9% vs 8.5%). Additionally, electricity output moderated to 1.2% from 1.6% in September. On a seasonally adjusted monthly basis, industrial activity rose by 0.6% in October, rebounding from a 0.9% drop in the preceding period.