Overview

The Industrial Production Index increased significantly by 3.0 per cent in June 2025, driven by growth momentum in the Manufacturing and Electricity sectors

The Industrial Production Index increased significantly by 3.0 per cent in June 2025, driven by growth momentum in the Manufacturing and Electricity sectors. This was reported today by the Department of Statistics Malaysia (DOSM) in its release of the Industrial Production Index (IPI), Malaysia, June 2025. This publication features IPI statistics comprising three sectors: Mining, Manufacturing, and Electricity.

The Industrial Production Index recorded a positive growth of 3.0 per cent in June 2025 compared to 0.3 per cent in the previous month. This increase was due to encouraging output growth in the Manufacturing sector, which grew by 3.6 per cent (May 2025: 2.8%) contributed mainly by domestic-oriented industries and the Electricity sector, which increased to 4.1 per cent (May 2025: -0.1%). However, production of Mining sector remained in negative territory but showed a significant recovery to negative 0.01 per cent (May 2025: -10.2%). Compared to the previous month, the IPI recorded a significant positive growth of 7.6 per cent, compared to 1.1 per cent recorded in the previous month.

In June 2025, domestic-oriented industries grew rapidly by 5.1 per cent compared to the 2.6 per cent increase recorded in May 2025. This rapid growth supported with a double-digit increase of 11.3 per cent in the Manufacture of food processing products followed by an increase in the Manufacture of basic metal production (6.7%) and the Manufacture of motor vehicles, trailers, and semi-trailers increased by 3.4 per cent in June 2025. Nevertheless, on month-to-month comparison, domestic-oriented industries contracted by 3.1 per cent compared to the 1.0 per cent recorded in the previous month.

Meanwhile, export-oriented industries recorded a steady growth of 2.9 per cent, following the same increase recorded in the previous month. This steady growth was primarily due to a 5.9 per cent decline in the Manufacture of computers, electronic and optical products. This is consistent with the country's export performance, which still recorded a decline of      4.2 per cent in June 2025, after first recording negative growth in May 2025. In contrast, the Manufacture of vegetable and animal oils and fats recorded growth of 8.5 per cent followed by the Manufacture of machinery and equipment n.e.c. and the Manufacture of electrical equipment, which recorded growth of 9.3 per cent and 7.1 per cent, respectively. However on a month-on-month comparison, export-oriented industries increased by a double-digit 11.9 per cent from 5.3 per cent in May 2025.

Output growth in the Mining sector remained in negative territory, although it recovered exponentially by negative 0.01 per cent in June 2025 (May 2025:  -10.2%) due to a jump in Natural Gas production of 2.3 per cent. Meanwhile, Crude Oil & Condensate continued to record a negative growth of 3.2 per cent. Compared to May 2025, the Mining index increased significantly by 15.8 per cent after experiencing a negative growth of 12.8 per cent in the previous month. Meanwhile, Electricity generation increased by 4.1 per cent year-on-year in June 2025 (May 2025: -0.1%). On a month-on-month comparison, the Electricity index contracted to a negative 3.0 per cent (May 2025: 7.4%).

Based on the performance of several other countries, the IPI grew strongly, including Taiwan (18.6%), Vietnam (10.8%), Singapore (8.0%), China (6.8%), Japan (4.0%), and South Korea (1.6%). Meanwhile, the IPI grew moderately for the United States (0.7%) and Thailand (0.6%) in June 2025.

The IPI grew at a more moderate rate of 2.0 per cent compared to the 2.3 per cent recorded in the first quarter of 2025. This growth was contributed by the Manufacturing and Electricity sectors with growth of 3.9 per cent and 0.7 per cent, respectively. Additionally, the IPI for the Mining sector recorded a decline of 5.5 per cent. In a quarter-on-quarter comparison, the IPI recorded a negative 1.5 per cent.

Meanwhile, for the first half of this year (January - June 2025), the IPI moderated by 2.2 per cent (January - June 2024: 3.7%) with the Manufacturing sector recording an increase of 4.0 per cent, while the Mining sector (-4.3%) and the Electricity sector (-0.5%) recorded a decrease.

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

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

7th August 2025

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