Overview

The Industrial Production Index grew 3.1 per cent in February 2026, 
with the Manufacturing sector strengthening by 4.2 per cent

The Industrial Production Index (IPI) remained positive in February 2026, registering a year-on-year growth of 3.1 per cent (January 2026: 5.9%). The increase was primarily driven by the Manufacturing sector which grew by 4.2 per cent (January 2026: 7.3%) and a 4.6 per cent increase in Electricity output (January 2026: 6.2%). However, the Mining sector output turned downward by 2.0 per cent, contrasting marginal positive growth of 0.1 per cent recorded in January 2026. Compared to the previous month, the IPI sluggish to 9.2 per cent as against positive 0.6 per cent.

The output in the Manufacturing sector was induced by the remain positive growth in export-oriented industries, which rise by 5.0 per cent after registering 7.8 per cent in January 2026. This performance driven primarily by a double-digit growth in the Manufacture of computer, electronics and optical products to 15.7 per cent (January 2026: 17.2%) and followed by 3.5 per cent increase in the Manufacture of electrical equipment (January 2026: 6.1%). The growth momentum is also reflected in the country's manufactured goods export performance, which grew by 7.1 per cent in February 2026 (January 2026: 11.9%). On a month-on-month basis, export-oriented industries decreased by 8.1 per cent from negative 0.7 per cent in January 2026.

In the meantime, the growth of domestic-oriented industries output remained sound at 2.7 per cent after registering 6.4 per cent in January 2026. The Manufacture of food processing products contributed significantly, increased by 8.4 per cent (January 2026: 8.9%); and followed by 3.6 per cent growth in the Manufacture of fabricated metal products, except machinery & equipment (January 2026: 8.5%). Compared to the previous month, the domestic-oriented industries declined by 8.1 per cent (January 2026: 2.4%).

The deterioration of 2.0 per cent in the Mining sector in February 2026 was due to a decline in Crude Oil & Condensate production by 4.3 per cent (January 2026: 3.8%). Futhermore, Natural Gas output recorded a slight decrease of 0.4 per cent (January 2026: -2.1%). Likewise, the Mining index plummeted by 14.3 per cent following a 2.1 per cent rise in the preceding month. Meanwhile, the generation of Electricity grew by 4.6 per cent year-on-year in February 2026 (January 2026: 6.2%). On a month-on-month basis, the Electricity index decreased by 8.0 per cent (January 2026: 0.1%).

On a global scale, the IPI for several countries increased at a slower rate, including United States (1.4%), Japan (0.3%), Vietnam (1.0%), Taiwan (17.8%) and followed by the negative growth for Singapore (-0.05%), South Korea (-2.2%) and Thailand (-0.04%). Conversely, China (6.3%) experienced an increased during this month.

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

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

9 April 2026

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