Malaysia Industrial Output Rises the Least in 8 Months

Malaysia’s industrial output expanded by 3.1% year-on-year in February 2026, below market estimates of a 5.5% rise and the previous month’s 5.9% increase. The latest figure also marked the softest growth since last June, as growth in two sectors slowed while the mining sector contracted. Manufacturing production slowed to a six-month low (4.2% vs 7.3% in January), mainly driven by rises in output of computer, electronics & optical products (15.7% vs 17.2%) and electrical equipment 3.5% vs 6.1%). Additionally, the generation of electricity increased at a softer rate (4.6% vs 6.2%), while mining output contracted (-2.0% vs 0.1%), weighed by declines in crude oil and condensate (-4.3% vs 3.8%) and natural gas (-0.4% vs -2.1%).

Industrial production in Malaysia grew by 5.9% year-on-year in January 2026, beating market estimates of a 5.4% rise and the previous month’s 4.8% increase. The latest figure also marked the fastest growth since October last year, driven by strong performances in all the industrial sectors. Manufacturing production accelerated to an eighteen-month high (7.3% vs 6.7% in December 2025), mainly boosted by robust output of electrical and electronic products (15.2% vs 12.8%) and food, beverages, and tobacco (12.2% vs 11.2%). Additionally, the generation of electricity increased at a faster rate (6.3% vs 3.8%), while mining output edged up (0.1% vs -2.5%), as crude oil and condensate growth eased (3.8% vs 6.4%) and natural gas output continued to decline (-2.1% vs -7.9%). On a seasonally adjusted monthly basis, industrial activity rose by 0.9% in January, the same pace as in the preceding period.

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.