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Malaysia’s industrial production rose by 8.4% year-on-year in May 2026, below market expectations of a 9.5% increase but slightly higher than the 8.2% expansion recorded in April. This was the fastest pace of growth since September 2022, largely supported by a sharp rebound in the mining sector, where output surged 19.8% compared with 6.8% in the previous month. Within mining, the contraction in crude petroleum eased (-0.7% vs -6.4%), while natural gas production accelerated markedly (37.4% vs 16.6%).
By contrast, manufacturing output growth moderated to 6.6% from 8.3%, weighed down mainly by declines in textiles, wearing apparel, leather products and footwear (-0.4% vs 3.4%), as well as in transport equipment and other manufacturers (-4.8% vs 10.7%). Electricity generation also expanded at a slower rate, rising 4.2% compared with 10.5% in April.
On a seasonally adjusted month-on-month basis, overall industrial production slipped by 0.4% in May, reversing an upwardly revised 5.5% increase in the preceding month.