Malaysia Industrial Output Growth Strongest Since 2022

Malaysia’s industrial production grew by 8.4% year-on-year in May 2026, falling short of market expectations for a 9.5% increase but up from an 8.2% rise in the previous month. The latest reading also marked the strongest growth since September 2022, driven largely by higher output in the mining sector, which jumped by 19.8% from 6.8% in April, as crude petroleum (-0.7% vs -6.4%) declined less, while natural gas accelerated (37.4% vs 16.6%). In contrast, production growth slightly eased for manufacturing (6.6% vs 8.3%), primarily due to declines in textiles, wearing apparel, leather products and footwear (-0.4% vs 3.4%) and transport equipment and other manufacturers (-4.8% vs 10.7%). Moreover, electricity generation increased at a softer pace (4.2% vs 10.5%). On a seasonally adjusted monthly basis, industrial output fell by 0.4% in May, reversing an upwardly revised 5.5% gain in the preceding period.

Malaysia’s industrial production increased 8.2% year-on-year in April 2026, accelerating sharply from a 3.1% rise in the previous month and easily surpassing market expectations of 4%. It was the strongest annual growth since September 2022, driven by a faster expansion in manufacturing output (8.3% vs. 5.5% in March). Growth was broad-based across all manufacturing sub-sectors, led by electrical and electronics, transport equipment, food, beverages, and tobacco products, and non-metallic minerals, basic metal & fabricated metals. Electricity generation also strengthened significantly, rising 10.5% compared with a 4.8% increase in March. Moreover, the mining sector returned to growth, expanding 6.8% after contracting 6.5% in March, supported by a 16.6% jump in natural gas production. On a seasonally adjusted monthly basis, however, industrial output declined 3.4%, reversing a revised 9.3% increase 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.