Overview

The Industrial Production Index increased by 1.5 per cent in February 2025,

led by growth in the Manufacturing sector

The Industrial Production Index (IPI) for February 2025 recorded a growth of 1.5 per cent, driven by an increase in the Manufacturing sector. This was reported by the Department of Statistics Malaysia in the release of the Industrial Production Index (IPI), Malaysia, February 2025 today. The publication highlights IPI statistics from three sectors: Mining, Manufacturing, and Electricity.

The increase in the IPI to 1.5 per cent in February 2025 was contributed by the growth in the Manufacturing sector, which expanded by 4.8 per cent. However, the output of the Mining and Electricity sectors declined by 8.9 per cent and 2.8 per cent, respectively. From a monthly comparison point of view, the IPI recorded a decrease of negative 6.8 per cent (January 2025: -0.4%).

The growth in the Manufacturing sector for February 2025 was supported by output in  export-oriented industries, which grew by 5.7 per cent, compared to 5.6 per cent in January 2025. This growth was mainly driven by the increase in the Manufacturing of computers, electronic, and optical products, which rose by 8.4 per cent, followed by the Manufacturing of vegetable and animal oils and fats (17.7%). Additionally, the Manufacturing of chemicals and chemical products contributed to a growth rate of 5.7 per cent. However, export-oriented industries remained in the negative range, with a decline of 5.6 per cent compared to January 2025 (-0.9%).

The domestic oriented industries showed positive growth of 2.9 per cent in February 2025, compared to a modest growth of 0.2 per cent in the previous month. This positive growth was driven by Manufacture of food processing products(8.6%); the Manufacturing of fabricated metal products, except machinery and equipment (6.4%); and Printing and reproduction of recorded media (8.7%). Compared to the previous month, domestic oriented industries declined by 4.8 per cent.

The contraction of 8.9 per cent in the Mining sector in February 2025 was driven by a decline in the output of Natural Gas and output of Crude Oil & Condensate, which recorded a decline of 10.3 percent and 6.7 percent respectively. From a monthly comparison point of view, the Mining index dropped to -12.5 per cent from -0.5 per cent recorded in January 2025.

Meanwhile, the Electricity index fell by 2.8 per cent in February 2025, compared to a negative 0.2 per cent recorded in the previous month. On a month-to-month comparison, the Electricity index remained in the negative range, with a 6.6 per cent decline.

Globally, IPP for several other countries showed a downward trend in February 2025, including China (5.9%), the United States (1.4%), Japan (0.3%), Singapore (-1.3%) and Thailand (-3.9%). In contrast, Taiwan (17.9%), Vietnam (17.2%) and South Korea (7.0%) showed a significant increases in February 2025.

Cumulatively, throughout the first two months of this year (January – February 2025), IPP increased by 1.8 per cent compared to the same period in 2024, with the Manufacturing sector indices showing an expansion of 4.2 per while the Mining and Electricity sector index showed a decrease of negative 5.9 per cent and negative 1.5 respectively.

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

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

11 April 2025

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