Malaysia Industrial Output Grows 8.4 Percent in May 2026

The Department of Statistics Malaysia reported that the country's industrial and manufacturing sectors grew in May 2026, although industrial production accelerated at a rate lower than market expectations. Industrial output rose 8.4 percent year-on-year, marking the strongest expansion since September 2022.

This growth was primarily driven by a 19.8 percent surge in mining, which resulted from increased natural gas output. In contrast, growth rates for electricity production and manufacturing slowed compared to April figures. Manufacturing sales climbed 8.9 percent to RM172.7 billion, supported by a 26.4 percent increase in electrical and electronics products.

Export-oriented industries saw a significant surge of 12.5 percent, while domestic-oriented industries grew by 0.2 percent. The manufacturing sector employed 2.4 million workers during the month, with total salaries and wages expanding 2.9 percent to reach RM8.56 billion.