KUALA LUMPUR: Malaysia’s industrial production index (IPI) rose by 5.9% year-on-year (y-o-y) in January 2026, supported mainly by stronger performance in the manufacturing sector, according to the Statistics Department.
Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the IPI expanded 5.9% in January after registering a 4.8% growth in the previous month.
“This was supported by the manufacturing sector, which increased by 7.3% (December 2025: 6.7% ), coupled with a marginal increase of 0.1% in the mining sector production (December 2025: minus 2.5% ). Additionally, the electricity output grew by 6.3% in January (December 2025: 3.8% ).
“In terms of month-on-month, the IPI rose slightly by 0.7% from 0.2% registered in December 2025,” he said in a statement following the release of the IPI for January.
Mohd Uzir said the output of export-oriented industries, which accounted for two-thirds of the manufacturing sector, expanded 7.8% in January 2026, up from 7.5% in the previous month.
The growth was supported mainly by the manufacture of computers, electronics, and optical products, and followed by the manufacture of vegetable and animal oils and fats, which increased by 17.2% and 20.7%, respectively.
“The y-o-y expansion mirrored the country’s better export performance, which increased by 19.6% in January 2026,” he said.
He added that compared with December 2025, export-oriented industries continued to register a negative growth of 0.7% after recording a negative 0.1% growth in the previous month.
Meanwhile, domestic-oriented industries expanded 6.4% after registering a growth of 5.2% in December 2025.
“This growth was primarily led by the manufacture of food processing products, which grew by 8.9%, followed by an increase in the manufacture of fabricated metal products, except machinery and equipment at 8.5% ,” said Mohd Uzir.
In comparison with the preceding month, domestic-oriented industries increased by 2.4% compared with the positive growth of 1% recorded in December 2025. Elaborating further, he said the mining sector recorded a turnaround with production, rising 0.1% in January 2026 compared with minus 2.5% previously.
This was supported by the crude oil and condensate index, which grew at 3.8% (December 2025: 6.4% ).
Meanwhile, the natural gas output remained in decline, albeit with a smaller negative of 2.1% (December 2025: minus 7.9% ). On a month-on-month basis, the mining index rose 2.1% against a contraction of 0.9% recorded in December 2025.
Mohd Uzir said electricity generation also expanded 6.3% y-o-y in January 2026 after recording a 3.8% increase in the preceding month. — Bernama
