Overview

The Manufacturing industry operated at a capacity utilisation of

83.3 per cent in the fourth quarter of 2025

The Manufacturing industry capacity utilisation operated at 82.6 per cent rate in the year of 2025, rose by 0.8 percentage points as compared to 81.8 per cent registered in the last year. The Manufacturing industry was recorded at 83.3 per cent rate of capacity utilisation in the fourth quarter of 2025, increased by 1.4 percentage points compared to the same quarter of the preceding year (Q4 2024: 81.9%). In this quarter, all sub-sectors posted capacity utilisation above 80 per cent, with the highest rate recorded by the Non-Metallic Mineral Products, Basic Metal & Fabricated Metal Products at 84.9 per cent, rose by 0.2 percentage points. This was followed by the rise 2.8 percentage points in the Transport Equipment & Other Manufactures with a rate of 84.8 per cent. In comparison with the previous quarter, the capacity utilisation of the Manufacturing industry grew by 0.4 percentage points (Q3 2025: 82.9%).

The year-on-year increase in monthly capacity utilisation performance was recorded throughout the fourth quarter of 2025, which was October 2025 (83.4%; +1.5 percentage points); November 2025 (83.2%; +1.0 percentage points); and December 2025 (83.3%; +1.9 percentage points).

In the fourth quarter of 2025, the capacity utilisation in the export-oriented industries increased by 1.6 percentage points year-on-year to 82.5 per cent (Q4 2024: 80.9%). The highest percentage points resulted in the Manufacture of computer, electronics & optical products; and Manufacture of vegetable & animal oils & fats, which up by 4.5 percentage points to 84.2 per cent and rise by 3.7 percentage points to 81.3 per cent respectively. Nonetheless, industries recorded  capacity utilisation below 80 per cent, namely the Manufacture of wood & products of wood & cork, except furniture, manufacture of articles of straw & plaiting materials (77.3%). As compared to the third quarter of 2025, the capacity utilisation rate of the export-oriented industries rose by 0.5 percentage points from 82.0 per cent in the preceding quarter.

Furthermore, the domestic-oriented industries capacity utilisation increased by 1.1 percentage points to 85.0 per cent in fourth quarter of 2025. Most of the industries in this segment posted the higher utilisation rates, particularly in the Manufacture of motor vehicles, trailers & semi-trailers (84.7%; +4.8 percentage points); and followed by the Manufacture of basic pharmaceuticals, medicinal chemical & botanical products (88.6%; +4.7 percentage points). Meanwhile, the lowest capacity utilisation rate was posted by the Manufacture of paper & paper products industry with 78.2 per cent. Factors such as low demand; insufficient supply of materials; and the repair & maintenance of machinery & equipment remained as the main cause of the under-utilisation of capacity in the Manufacturing industry. As compared to the last quarter, the capacity utilisation in the domestic-oriented industries were grew by 0.1 percentage points from 84.9 per cent.

The Manufacturing industry capacity utilisation for seven states surpassed the national rate in the fourth quarter of 2025, namely WP Labuan (97.6%); Terengganu (87.1%); Negeri Sembilan (86.2%); Selangor (85.7%); Kedah (85.1%); Pahang (84.9%); and Johor (84.7%). Whereas, the lowest capacity utilisation rate posted by Perlis with 68.4 per cent as compared to the same quarter last year.

The full publication of the Manufacturing Industry Capacity Utilisation Statistics, Fourth Quarter 2025 can be downloaded through eStatistik portal.

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

24 February 2026

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