KUALA LUMPUR: Malaysia's Industrial Production Index (IPI) rose 5.0 per cent year-on-year (y-o-y) in August 2026, up from 4.7 per cent in July, driven by stronger manufacturing and electricity output, the Department of Statistics Malaysia (DOSM) said.
DOSM said in a statement today that manufacturing sales climbed to RM185 billion, up by 9.9 per cent y-o-y to RM185.0 billion in August from RM168.3 billion a year earlier.
The robust export-oriented industries and a broad-based improvement in manufacturing resulted in the manufacturing sector expanding by 7.4 per cent from 6.4 per cent in July, while the electricity sector grew 9.0 per cent from 5.5 per cent previously.
"The mining sector contracted 7.4 per cent, following declines in crude oil and condensate production (12.2 per cent) and natural gas production (4.3 per cent),” it said.
On a month-on-month (m-o-m) basis, the IPI rebounded 2.6 per cent in August 2026 from a 2.0 per cent contraction in July. A 3.4 per cent expansion in manufacturing drove this rebound, followed by a 1.2 per cent rise in the electricity sector, DOSM said.
"Cumulatively, the IPI increased by 5.6 per cent in the first eight months of 2026 compared with 2.6 per cent in the same period last year,” it said.
Dissecting the manufacturing sector further, DOSM said export-oriented industries grew 9.1 per cent in August, compared with 6.7 per cent in July, supported by the manufacture of computer, electronic and optical products, which expanded 18.8 per cent, and machinery and equipment, which grew 13.8 per cent.
"Domestic-oriented industries grew 3.9 per cent, supported by basic metals manufacturing, which rose 9.9 per cent, and food processing products, which increased 6.5 per cent.
"Subsequently, the capacity utilisation rate of Malaysia's manufacturing industry in August 2026 also rose to 84.1 per cent, against 83.2 per cent in July,” it said.
"The number of employees in the manufacturing sector rose by 1.2 per cent to 2.43 million, while total salaries and wages paid rose by 3.5 per cent to RM8.55 billion.
DOSM also said the sales value per employee rose by 8.7 per cent to RM76,148, while the average monthly salary per employee rose by 2.3 per cent to RM3,519.
Cumulatively, manufacturing sales rose 7.9 per cent to RM1.39 trillion in January-August 2026 versus 3.5 per cent in the same period last year. - Bernama
