Overview

The Industrial Production Index up 4.7 per cent in July 2026,
continued a positive momentum in Manufacturing sector

The growth of IPI in July 2026 was primarily driven by the Manufacturing and Electricity sectors, which increased by 6.4 per cent and 5.0 per cent respectively. Meanwhile, the Mining sector declined by 3.2 per cent during this month. In comparison with the preceding month, the IPI turned downward by 2.0 per cent, in contrast to the positive 5.5 per cent recorded in the previous month.

Export-oriented industries continued as the key driver of Manufacturing production in July 2026, recording a growth of 6.7 per cent after registering an increase of 7.6 per cent in the previous month. This growth was primarily driven by the Manufacture of computer, electronics & optical products which maintained double-digit growth of 14.0 per cent. In addition, the Manufacture of machinery & equipment n.e.c. also recorded positive growth of 14.6 per cent. On a month-on-month basis, the export-oriented industries declined by 3.1 per cent, reversing the 10.7 per cent increase in June 2026.

In the meantime, the domestic-oriented industries rose by 5.8 per cent in July 2026, following an increase of 6.4 per cent in June 2026. The growth was mainly supported by the increase in the Manufacture of basic metals; and the Manufacture of food processing products which registered an increases of 10.1 per cent and 7.2 per cent respectively. In comparison with the preceding month, the domestic oriented industries increased marginally by 0.4 per cent as against a positive 1.2 per cent registered in June 2026.

The growth of output in the Mining sector went down by 3.2 per cent in July 2026 (Jun 2026: 3.1%), influence by the decline further in Crude Oil & Condensate production at negative 13.1 per cent (Jun 2026: -3.3%). Futhermore, Natural Gas output recorded a slower growth of 3.6 per cent, compared with 7.4 per cent in the preceding month. On a month-on-month basis, the Mining index dipped by 4.1 per cent after experiencing a negative growth of 0.3 per cent in the preceding month. Meanwhile, the generation of Electricity grew by 5.0 per cent (Jun 2026: 6.7%). On a month-on-month basis, the Electricity index increased by 3.8 per cent (Jun 2026: -2.9%).

For the first seven months of 2026, the IPI increased by 5.7 per cent as compared to the same period of the previous year (January - July 2025: 2.3%), influenced by the Mining index (2.0%); Manufacturing (6.5%); and Electricity index (6.1%).

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

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

9 SEPTEMBER 2026

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