Overview

The Industrial Production Index increased by 5.0 per cent in August 2026

Malaysia’s industrial performance remained positive in August 2026, with the Industrial Production Index (IPI) rose by 5.0 per cent, driven primarily by the Manufacturing and Electricity sector's output. This robust year-on-year growth of the IPI was led by the Manufacturing sector, which expanded by 7.4 per cent (July 2026: 6.4%) and the Electricity sector up 9.0 per cent (July 2026: 5.5%).  Meanwhile, the Mining sector contracted by 7.4 per cent due to the decline in Crude Oil & Condensate production (-12.2%) and Natural Gas (-4.3%). In terms of month-on-month performance, the IPI rebounded to 2.6 per cent (July 2026: -2.0%), propelled by an increase of 3.4 per cent in the Manufacturing sector, followed by the Electricity sector (1.2%).

The Manufacturing sector output increased by 7.4 per cent year-on-year in August 2026 after registering 6.4 per cent in July 2026. The subsectors which contributed to the increase in August 2026 were Electrical & Electronics Products (17.0%); Petroleum, Chemical, Rubber & Plastic Product (2.6%); and Non-metallic Mineral Products, Basic Metal & Fabricated Metal Products (5.7%). Cumulatively, the IPI performance for the first eight months of 2026 increased by 5.6 per cent (January - August 2025: 2.6%).

The IPI growth for the export-oriented industries expanded by 9.1 per cent (July 2026: 6.7%), driven by the Manufacture of computer, electronic & optical products (18.8%); as well as the Manufacture of machinery & equipment n.e.c. (13.8%). Furthermore, domestic-oriented industries increased by 3.9 per cent, supported by the Manufacture of basic metals (9.9%); and the Manufacture of food processing products (6.5%). Subsequently, the capacity utilisation rate of Malaysia's Manufacturing industry in August 2026 also rose to 84.1 per cent, as compared to 83.2 per cent in the previous month.

The full publication of the Industrial Production Index, August 2026 can be downloaded through eStatistik portal.

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

9 OCTOBER 2026

For interviews, press statement and clarification to the media, contact:
Baharudin Mohamad
Public Relation Officer
Email: baharudin[at]dosm.gov.my
Phone: 03 8090 4681

Not found what you looking for? Request data from us, through
Go to eStatistik
Email: data[at]dosm.gov.my
Phone: 03 8885 7128 (data request)