Malaysia Industrial Output Growth Steady in March

Industrial production in Malaysia grew by 3.1% year-on-year in March 2026, matching market expectations and the pace seen in the previous month. Still, the latest figure remained the weakest growth in industrial activity since last June, driven mainly by a deeper contraction in mining output (-6.5% vs -2.0%), as crude oil and condensate production declined more sharply (-11.3% vs -4.3%) and natural gas output continued to fall (-3.4% vs -0.4%). On the other hand, activity in the manufacturing sector increased 5.5% from 4.2% in the previous month, mainly boosted by robust output of electrical and electronic products (12.5% vs 12.9%) and food, beverages, and tobacco (9.1% vs 5.7%). Additionally, the generation of electricity went up (4.9% vs 4.6%). On a seasonally adjusted monthly basis, industrial activity fell by 1.8% in March, easing from a 2.9% drop in the preceding period.

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.