KUALA LUMPUR: Malaysia’s Industrial Production Index (IPI) expanded 4.7 per cent year-on-year (y-o-y) in July 2026, supported by growth in the manufacturing and electricity sectors, according to the Department of Statistics Malaysia (DOSM).
In a statement today, DOSM said the manufacturing and electricity indexes rose 6.4 per cent and five per cent, respectively, while the mining index declined 3.2 per cent.
"In comparison with the preceding month, the IPI turned downward by two per cent, in contrast to the positive 5.5 per cent recorded in the previous month,” it said.
It said export-oriented industries continued to be the key driver of manufacturing production in July 2026, recording growth of 6.7 per cent after expanding 7.6 per cent in the previous month.
"This growth was primarily driven by the manufacture of computer, electronics and optical products, which maintained double-digit growth of 14.0 per cent, while the manufacture of machinery and equipment n.e.c. grew 14.6 per cent.
"On a month-on-month (m-o-m) basis, the export-oriented industries declined by 3.1 per cent, reversing the 10.7 per cent increase in June 2026,” it said.
DOSM said domestic-oriented industries rose 5.8 per cent in July 2026, following a 6.4 per cent increase in June, mainly supported by growth in the manufacture of basic metals and food processing products at 10.1 per cent and 7.2 per cent, respectively.
"In comparison with the preceding month, domestic-oriented industries increased marginally by 0.4 per cent in July 2026, as against a positive growth of 1.2 per cent registered in June 2026,” it said.
In a separate statement, DOSM said Malaysia’s manufacturing sales increased 9.1 per cent y-o-y to RM177.3 billion in July 2026, mainly driven by the electrical and electronics (E&E) products subsector, which grew 17.8 per cent.
"This positive performance continued to be bolstered by the food, beverages and tobacco subsector, which grew 3.9 per cent compared with 2.2 per cent in June 2026, alongside a 3.6 per cent increase in the petroleum, chemical, rubber and plastic subsector.
"On a m-o-m, the sales value increased 0.2 per cent from RM177.0 billion recorded in June 2026,” it said.
DOSM said the export-oriented industry recorded 9.9 per cent y-o-y growth in sales value in July 2026, contributing 72.2 per cent of total manufacturing sales.
This performance was anchored by a 19.0 per cent increase in the manufacture of computer, electronic and optical products, followed by machinery and equipment n.e.c., which rose 17.8 per cent compared with 9.9 per cent in June 2026, while coke and refined petroleum products expanded 3.3 per cent, it said.
On a m-o-m basis, DOSM said the sales value of export-oriented industries declined 1.0 per cent.
Meanwhile, domestic-oriented industries recorded a 7.2 per cent y-o-y increase in sales, led by basic metals at 14.9 per cent, food processing products at 9.6 per cent and motor vehicles, trailers and semi-trailers at 5.0 per cent.
On employment, the manufacturing sector recorded 2.4 million employees in July, up 1.1 per cent y-o-y, while salaries and wages increased 2.8 per cent to RM8.55 billion. Average salaries and wages per employee stood at RM3,527, an increase of 1.7 per cent.
For the first seven months of 2026, cumulative manufacturing sales reached RM1.20 trillion, up 7.6 per cent from the corresponding period in 2025. - Bernama
