Malaysia Industrial Output Growth Slows in July

Industrial production in Malaysia increased by 4.7% year-on-year in July 2026, easing from a 6.5% rise in the previous month and below market forecasts of 5.4%. It was the softest increase in industrial production since March, due mainly to softer rises in manufacturing (6.4% vs 7.3%), driven by lower production of transport equipment and other manufactures (4.5% vs 9.4%), petroleum, chemical, rubber & plastic (1.7% vs 2.6%), and electrical and electronics products (13.3% vs 13.6%). Meanwhile, electricity output also eased to 5.0% from 6.7%. Additionally, mining fell (-3.2% vs 3.1%), as crude oil and condensate output declined at a faster pace (-13.1% vs -3.3%), while gas production eased sharply (3.6% vs 7.4%). For the first seven months of the year, industrial production grew 5.7% yoy, driven by manufacturing (6.5%), electricity (6.1%), and mining (2.0%). On a seasonally adjusted monthly basis, industrial output edged down 0.1% in July, following a 0.5% fall in the preceding period.

Industrial production in Malaysia rose by 6.5% year-on-year in June 2026, slowing from an 8.4% increase in the previous month, which had marked the strongest growth since September 2022. Production softened significantly in the mining sector, rising just 3.1% after a 19.8% surge in May, as crude oil and condensate output recorded a further decrease (-3.3% vs -0.7%), while growth sharply eased for natural gas production (7.4% vs 37.4%). In contrast, manufacturing activity continued to drive output growth (7.3% vs 6.6%), driven by higher production for wood products, furniture, paper products, and printing (5.7% vs 3.8%) and transport equipment and other manufactures (9.4% vs -4.8%). Additionally, electricity generation increased at a faster pace, up 6.7% from 4.8% in the previous month. On a seasonally adjusted monthly basis, industrial output dropped by 0.5% in June, slipping further from a 0.3% fall in the preceding period.

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.