Overview

The Industrial Production Index rose 0.3 per cent in May 2025, induced by steady output growth at 2.8 per cent
in the Manufacturing sector

The Industrial Production Index remained positive albeit at a slower rate of 0.3 per cent in May 2025 as compared to 2.7 per cent in the preceding month. The moderation was primarily attributed to the slower output growth in the Manufacturing sector, which grew by 2.8 per cent (April 2025: 5.6%), while the Electricity sector rebounded to 0.4 per cent (April 2025: -1.7%). Nevertheless, the Mining sector plummeted further by 10.2 per cent (April 2025: -6.3%). In comparison with the preceding month, the IPI turnaround to positive growth of 1.1 per cent, in contrast to the negative 8.0 per cent recorded in the previous month.

In May 2025, the export-oriented industries slowed down to 2.9 per cent after registering an increase of 6.4 per cent in the previous month. The slower growth mainly due to the decrease in the Manufacture of coke & refined petroleum products which registered a decreased of 4.8 per cent. This was in tandem with the decline of country's manufactured goods exports at 5.0 per cent in May 2025 after experiencing positive growth in the preceding month. On the contrary, the Manufacture of vegetable and animal oils & fats registered a double-digit growth of 15.9 per cent in May 2025. Furthermore, the Manufacture of computer, electronics & optical products and Manufacture of machinery & equipment n.e.c. also supported the growth of Manufacturing sector at 6.0 per cent and 5.7 per cent respectively. On a month-on-month basis, export-oriented industries turned upward by 5.3 per cent as against negative 10.2 per cent in April 2025.

In the meantime, the domestic-oriented industries grew modestly by 2.6 per cent as opposed to the increase of 3.9 per cent recorded in April 2025. The slower growth was attributable to a decline of 10.1 per cent in the Manufacture of motor vehicles, trailers & semi-trailers. In contrast, there was an increase in the production of Manufacture of food processing products at 10.3 per cent. Additionally, the manufacturing output related to construction activities namely the Manufacture of fabricated metal products, except machinery & equipment increased by 3.7 per cent in May 2025. In comparison with April 2025, the domestic-oriented industries rose to 1.0 per cent as compared to 0.3 per cent registered in the previous month.

The growth of output in the Mining sector went down by 10.2 per cent in May 2025 (April 2025: -6.3%) as a consequence of a decrease further in Natural Gas and Crude Oil & Condensate production at negative 16.6 per cent and negative 1.6 per cent respectively. As compared to April 2025, the Mining index dipped by 12.8 per cent after experiencing a negative growth of 13.9 per cent in the preceding month. Meanwhile, the generation of Electricity went up by 0.4 per cent (April 2025: -1.7%) year-on-year in May 2025. On a month-on-month basis, the Electricity index rebounded by 7.9 per cent (April 2025: -3.2%).

Looking at the performance of several countries, the IPI was slightly grew in China (5.8%), United States (0.6%), Singapore (3.9%), South Korea (0.2%), Taiwan (22.6%), Vietnam (11.0%), and Thailand (1.9%). Conversely, Japan experienced a decline of 1.8 per cent in IPI in May 2025.

The IPI grew at a slower rate of 2.0 per cent as compared to the same period of the previous year (January - May 2024: 3.4%), influenced by the Mining index (-5.1%); and Electricity index (-1.3%). Conversely, the Manufacturing index registered an increased at 4.1 per cent.

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

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

11 July 2025

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