Overview

The Industrial Production Index expanded by 4.9 per cent in August 2025,
supported by the relatively stable performance of the Mining sector

The Industrial Production Index up 4.9 per cent in August 2025 after registering 4.2 per cent in the preceding month. The expansion was attributable to the vigorous growth of the Mining sector at 16.8 per cent (July 2025: 4.3%), followed by the increase in the Manufacturing sector output rose by 2.8 per cent (July 2025: 4.4%). In the meantime, the growth in the Electricity sector remained at a rate of 1.6 per cent (July 2025: 1.6%). In comparison with July 2025, the IPI rebounded to 2.4 per cent, contrasting with the negative growth 0.3 per cent in the previous month.

The production of Manufacturing sector in August 2025 was primarily reinforced by remain positive growth in export-oriented industries by 2.3 per cent as against 4.1 per cent recorded in July 2025. This increased  was predominantly observed in the Manufacture of computer, electronics & optical products which rose 6.7 per cent; and followed by the Manufacture of electrical equipment sub-sector which strengthened further by 7.4 per cent. The performance of the export-oriented industries was in tandem with a positive 1.9 per cent growth in the country's export performance in August 2025. On a month-on-month comparison, the export-oriented industries upturn to 1.2 per cent as against negative growth at 2.2 per cent in July 2025.

Additionally, the domestic-oriented industries continued to grew at 3.8 per cent as opposed to the increase of 5.0 per cent registered in July 2025. The sustained growth was contributed by the positive momentum recorded in Manufacture of food processing products; and Manufacture of fabricated metal products, except machinery & equipment which registered increases of 9.7 per cent and 4.9 per cent, respectively. In comparison with the preceding month, the domestic oriented industries expanded further by 4.9 per cent as compared to 1.0 per cent registered in the previous month.

The production of Mining sector in August 2025 surge by 16.8 per cent, boosted by increase in both components where Crude Oil & Condensate index accelerated by 11.4 per cent, followed by the Natural Gas index expanded further by 20.6 per cent. As compared to the previous month, the Mining index increased by 4.2 per cent compared to 2.2 per cent recorded in July 2025. Meanwhile, Electricity generation remained a growth at 1.6 per cent year-on-year in August 2025. On a month-on-month comparison, the Electricity index edged downward to a negative 1.8 per cent (July 2025: 5.5%).

Looking at the performance of several countries, the IPI was grows modestly in United States (0.9%), South Korea (0.9%), China (5.2%), and Taiwan (14.4%). Conversely, Japan (-1.3%), Thailand (-4.2%) and Singapore (-7.8%) experienced a decline growth in August 2025. In the meantime, only Vietnam registered a positive growth at 8.9 per cent during the month.

Concluding the IPI performance for the first eight months of 2025, the IPI grew at a slower rate of 2.7 per cent as compared to the same period of the previous year (January - August 2024: 4.0%), influenced by the Manufacturing index (3.9%). Conversely, the Mining index and Electricity index recorded a decreased at 1.0 per cent and 0.2 per cent, respectively.

The full publication of the Industrial Production Index, August 2025 can be downloaded through eStatistik portal.

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

10 October 2025

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