Overview

The Industrial Production Index up 6.5 per cent in June 2026,
continued a positive momentum across all sectors

The Industrial Production Index (IPI) continued its positive momentum, increased by 6.5 per cent in June 2026. The Manufacturing sector continued to drive output growth, recording an expansion of 7.3 per cent (May 2026: 6.6%), and followed by 6.7 per cent increase in Electricity sector compared with 4.8 per cent registered in the prior month. Meanwhile, the Mining production recorded a growth of 3.1 per cent, moderating significantly from 19.8 per cent in May 2026. On a month-on-month basis, the IPI increased by 5.5 per cent from 1.4 per cent recorded in May 2026.

Export-oriented industries remained the key driver of Manufacturing production in June 2026, recording a growth of 7.6 per cent. This increase was predominantly observed in the Manufacture of computer, electronics & optical products which sustained double-digit growth of 14.9 per cent. In addition, the Manufacture of coke and refined petroleum products also recorded positive growth of 2.9 per cent. The year-on-year expansion of export-oriented industries mirrored the growth in the country's export of manufactured goods during this month. On a month-on-month comparison, the export-oriented industries up by 10.7 per cent, as compared to 5.7 per cent growth in May 2026.

In the meantime, the domestic-oriented industries expanded by 6.4 per cent in June 2026, following an increased of 2.0 per cent in May 2026. The expansion was mainly supported by the robust momentum in the Manufacture of motor vehicles, trailers & semi-trailers; and the Manufacture of basic metals which registered an increases of 12.6 per cent and 8.2 per cent respectively. In comparison with the preceding month, the domestic oriented industries increased by 1.2 per cent as against a negative 4.6 per cent registered in the previous month.

The Mining sector witnessed a moderate growth of 3.1 per cent in June 2026 was due to the increase in Natural Gas output by 7.4 per cent (May 2026: 37.4%). Furthermore, Crude Oil & Condensate production recorded a further decrease of 3.3 per cent (May 2026: -0.7%). Compared to the previous month, the Mining index slightly decreased by 0.3 per cent after registering a negative growth of 2.2 per cent in the preceding month. Moreover, the generation of Electricity went up by 6.7 per cent year-on-year in June 2026 (May 2026: 4.8%). On a month-on-month basis, the Electricity index contracted by 2.9 per cent (May 2026: 1.8%).

On a global scale, the IPI for several countries registered a slower growth in June 2026, including Singapore (7.2%); and United States (1.1%), while Thailand recorded a negative growth at 3.1 per cent. However, China (5.3%); South Korea (5.8%); Japan (4.2%); Taiwan (23.0%); and followed by Vietnam (11.1%) experienced an upward trend during this month.

In terms of quarterly IPI performance, the IPI increased by 7.7 per cent in the second quarter of 2026, compared with 4.0 per cent recorded in the previous quarter. This growth was contributed by the Mining (9.4%); Manufacturing (7.4%); and Electricity (7.3%). In a quarter-on-quarter comparison, the IPI recorded a positive growth of 1.9 per cent.

Meanwhile, regarding the performance in the first half of this year (January - June 2026) the IPI went up by 5.9 per cent compared with 2.0 per cent recorded in the corresponding period of 2025, with the Manufacturing index expanding by 6.5 per cent, followed by the Mining sector (2.9%); and the Electricity sector (6.3%).

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

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

11 August 2026

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