Overview

The Industrial Production Index up 8.4 per cent in May 2026,
sustaining a positive momentum in all sectors

The Industrial Production Index (IPI) rose by 8.4 per cent in May 2026, following a growth of 8.2 per cent in the preceding month. The output growth in the Manufacturing led the way, with an increase of 6.6 per cent (April 2026: 8.3%) coupled with the climbed by 19.8 per cent in the production of the Mining sector (April 2026: 6.8%). Moreover, the Electricity sector grew by 4.2 per cent (April 2026: 10.5%). In comparison to the previous month, the IPI turnaround to 1.3 per cent as against negative 3.4 per cent recorded in April 2026.

The production of Manufacturing sector in May 2026 was primarily spurred by growth in export-oriented industries at 8.8 per cent, compared to 8.5 per cent registered in the previous month. This increased was predominantly observed in the Manufacture of computer, electronics & optical products which remained double-digit growth by 17.0 per cent. In addition, the Manufacture of coke & refined petroleum products also increased by 7.8 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 turnaround by 5.7 per cent from negative 8.7 per cent growth in April 2026.

Additionally, the domestic-oriented industries grew modestly by 2.0 per cent as opposed to the increase of 8.0 per cent registered in April 2026. The sustained growth was particularly induced by the stable momentum recorded in Manufacture of fabricated metal products, except machinery & equipment; and the Manufacture of basic metals which registered an increases of 4.5 per cent and 7.3 per cent, respectively. In comparison with the preceding month, the domestic oriented industries decreased by 4.6 per cent as against a positive 5.3 per cent registered in the previous month.

The robust growth of 19.8 per cent in the Mining sector in May 2026 was due to the accelerated in Natural Gas output by 37.4 per cent (April 2026: 16.6%). Furthermore, the Crude Oil & Condensate production recorded a decrease of 0.7 per cent (April 2026: -6.4%). As compared to the previous month, the Mining index decreased by 2.2 per cent after registering a negative growth of 1.6 per cent in the preceding month. Moreover, the generation of Electricity grew by 4.2 per cent year-on-year in May 2026 (April 2026: 10.5%). On a month-on-month basis, the Electricity index grew by 1.3 per cent (April 2026: 2.1%).

On a global scale, the IPI for several countries slower growth in May 2026, including Singapore (13.0%); and Taiwan (11.8%); with increased seen in China (4.5%); United States (1.7%); and followed by Vietnam (10.1%). Conversely, Thailand (-0.8%); Japan (-1.7%); and South Korea (-0.9%) experienced a downturn during this month.

Summarising this statement on the IPI performance for the first five months of this year (January – May 2026), the IPI increased by 5.7 per cent compared to the same period in 2025, with the Manufacturing sector indices showing an expansion of 6.4 per cent; followed by Mining index showed of 2.8 per cent; and Electricity sector at 6.1 per cent.

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

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

9 July 2026

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