KUALA LUMPUR, July 9 — Malaysia’s Industrial Production Index (IPI) rose by 8.4 per cent year-on-year (y-o-y) in May 2026, sustaining a positive momentum in all sectors, according to the Statistics Department Malaysia (DOSM).

DOSM said in a statement today that the rise followed an 8.2 per cent growth in April 2026.

“Growth in the manufacturing output led the way, with a 6.6 per cent increase (April 2026: 8.3 per cent), coupled with a 19.8 per cent climb in the mining sector’s production (April 2026: 6.8 per cent). 

“Moreover, the electricity sector grew by 4.2 per cent (April 2026: 10.5 per cent). The IPI recorded a 1.3 per cent turnaround against a negative 3.4 per cent in April 2026,” it said.

The manufacturing sector’s May production was primarily driven by growth in export-oriented industries, which expanded 8.8 per cent against 8.5 per cent in April 2026.

DOSM said the rise was predominantly observed in the manufacture of computers, electronics and optical products, which grew by 17 per cent. Coke and refined petroleum products manufacturing rose by 7.8 per cent.

“The y-o-y expansion of export-oriented industries mirrored the growth in manufactured goods exports in May.

On a month-on-month (m-o-m) basis, the export-oriented industries had a 5.7 per cent turnaround against an 8.7 per cent decline in April 2026.

Domestic-oriented industries grew modestly by two per cent versus the eight per cent rise registered in April 2026, supported by a stable momentum in the manufacture of fabricated metal products, except machinery and equipment, and basic metals manufacturing, which grew 4.5 per cent and 7.3 per cent, respectively.

Domestic-oriented industries recorded a 4.6 per cent fall against a positive 5.3 per cent in the previous month.

Elaborating further, DOSM said the robust 19.8 per cent growth in the mining sector in May 2026 was supported by natural gas accelerating output by 37.4 per cent (April 2026: 16.6 per cent).

Meanwhile, crude oil and condensate production fell by 0.7 per cent (April 2026: -6.4 per cent).

The mining index fell by 2.2 per cent after registering a negative growth of 1.6 per cent in April.

“Moreover, the generation of electricity grew by 4.2 per cent y-o-y in May 2026 (April 2026: 10.5 per cent). On a m-o-m basis, the electricity index grew by 1.3 per cent against 2.1 per cent in the prior month.”

Globally, the IPI for several countries recorded slower growth in May 2026, including Singapore (13 per cent) and Taiwan (11.8 per cent), with increases in China (4.5 per cent), the United States (1.7 per cent), and Vietnam (10.1 per cent).

In summary, the IPI expanded by 5.7 per cent between January and May 2026 versus a year ago, supported by growth in the manufacturing sector (6.4 per cent), the electricity sector (6.1 per cent) and the mining sector (2.8 per cent). — Bernama