Overview

Industrial Production Index grew 3.2 per cent in March 2025, driven by output growth of the Manufacturing and Mining sectors

The Industrial Production Index in March 2025 recorded a growth of 3.2 per cent driven by the output growth of the Manufacturing and Mining sectors. The Department of Statistics Malaysia reported in the publication of the Industrial Production Index (IPP), Malaysia, March 2025 today. This publication displays IPP statistics consisting of three sectors, namely Mining, Manufacturing, and Electricity.

The increase in IPP to 3.2 per cent in March 2025 was contributed by the output growth of the Manufacturing and Mining sectors, which recorded rates of 4.0 per cent and 1.9 per cent respectively. Meanwhile, the output production of the Electricity sector remained in the negative range at a rate of 2.7 per cent. In terms of monthly comparison, the IPP recorded an increase of 9.3 per cent (February 2025: -6.8%).

The increase in Manufacturing sector production in March 2025 was supported by production in export-oriented industries which grew to 4.8 per cent compared to 5.7 per cent recorded in February 2025. This growth was primarily underpinned by growth in the Manufacture of computer, electronic and optical products which recorded an increase of 9.0 per cent; followed by the Manufacture of oils and fats from vegetables and animals (10.6%). Moreover, the Manufacture of chemicals and chemical products also contributed at a rate of 4.9 per cent. In addition, export-oriented industries grew by 10.1 per cent compared to the previous month (February 2025: -5.6%).

Domestic-oriented industries grew 2.3 per cent in March 2025 compared to the growth of 2.9 per cent recorded in the previous month. This positive increase was contributed by the Manufacture of food processing products (7.8%); Manufacture of fabricated metal products, except machinery and equipment (4.2%); and Manufacture of other non-metallic mineral products (3.7%). Compared to the previous month, domestic-oriented industries increased by 1.3 per cent.

The 1.9 per cent growth in the Mining sector in March 2025 was driven by the increase in the output of Crude Petroleum & Condensate and the output of Natural Gas, which respectively recorded increases of 2.2 per cent and 1.8 per cent. In terms of monthly comparison, the Mining index increased to 17.8 per cent compared to negative 12.5 per cent recorded in February 2025.

Meanwhile, the Electricity index remained at a negative rate of 2.7 per cent in March 2025 compared to the negative 2.8 per cent recorded last month. On a month-on-month comparison, the Electricity index increased to 11.2 per cent.

Globally, the IPP for several other countries showed a downward trend in March 2025, including Taiwan (13.6%), Vietnam (9.3%), South Korea (5.3%), the United States (1.3%) and Japan (-0.3%). In contrast, China (7.7%), Singapore (5.8%) and Thailand (-0.7%) showed encouraging increases in March 2025.

Overall, in the first quarter of 2025, the IPP recorded a slower growth of 2.3 per cent compared to the 3.4 per cent recorded in the fourth quarter of 2024. This growth was contributed by the Manufacturing sector with a growth of 4.2 per cent. In addition, the IPP for the Mining and Electricity sectors respectively recorded decreases of 3.3 per cent and 1.9 per cent. In quarterly comparison, the IPP recorded negative 2.1 per cent.

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

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

8 May 2025

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