Overview

The Industrial Production Index (IPI) maintained its growth by registering 3.1 per cent in March 2026 (February 2026: 3.1%). This performance was driven by a 5.5 per cent increase in the Manufacturing sector (February 2026: 4.2%) and a 4.9 per cent growth in Electricity output (February 2026: 4.6%). Meanwhile, the Mining sector continued to decline, recording a negative growth of 6.5 per cent compared to a contraction of 2.0 per cent in February 2026. On a month-on-month basis, the IPI rebounded by 9.3 per cent after registering a negative 9.2 per cent growth in the previous month.

The output for the export-oriented industries which accounted for two-thirds of Manufacturing sector, expanded by 6.7 per cent in March 2026 as compared to 5.0 per cent registered in the previous month. The expansion was supported mainly by the Manufacture of computer, electronics & optical products which augmented by 14.8 per cent; and followed by the Manufacture of vegetable & animal oils & fats at 13.5 per cent. This year-on-year growth is reflected in the country’s export performance, which increased by 8.3 percent in March 2026. Compared to February 2026, the export-oriented industries ascended by 11.9 per cent after recording a negative 8.1 per cent growth in the previous month.

In the meantime, the domestic oriented industries tick up by 2.8 per cent in March 2026, compared to 2.7 per cent in the previous month. This positive growth was driven by Manufacture of food processing products (7.2%); and the Manufacturing of fabricated metal products, except machinery and equipment (4.0%). Compared to the previous month, domestic oriented industries turnaround by 1.4 per cent.

The deterioration of 6.5 per cent in the Mining sector in March 2026 was due to a decline in both components where Crude Oil & Condensate production by 11.3 per cent (February 2026: -4.3%) and Natural Gas output recorded a further decrease of 3.4 per cent (February 2026: -0.4%). As compared to the previous month, the Mining index accelerated by 12.3 per cent following a drop 14.3 per cent rise in the preceding month. Meanwhile, the generation of Electricity edge up by 4.9 per cent year-on-year in March 2026 (February 2026: 4.6%). On a month-on-month basis, the Electricity index soared by 12.1 per cent (February 2026: -8.0%).

On a global scale, the IPI for several countries increased, including Singapore (10.1%) Vietnam (7.2%), South Korea (3.6%), Japan (2.3%), Thailand (0.8%) and Taiwan (28.7%) in March 2026. Conversely, China (5.7%) and United States (0.7%) continued to increase with a slower growth during this month.

Summarising this statement on the IPI performance for the first three months of this year (January – March 2026), the IPI increased by 4.0 per cent compared to the same period in 2025, with the Manufacturing sector indices showing an expansion of 5.7 per and Electricity sector at 5.2 per cent, while the Mining index showed a decrease of 2.9 per cent.

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

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

08 May 2026

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