Malaysia’s industrial output grew by 3.1% year-on-year in February 2026, undershooting market expectations of a 5.5% increase and slowing from the 5.9% expansion recorded in January. This was the weakest growth since June of the previous year, reflecting slower momentum in two key sectors and a contraction in mining.
Manufacturing output eased to a six-month low, rising 4.2% compared with 7.3% in January. The sector was supported mainly by higher production of computer, electronics and optical products (up 15.7% vs 17.2% previously) and electrical equipment (up 3.5% vs 6.1%). Electricity generation also expanded at a more moderate pace, increasing 4.6% compared with 6.2% in the prior month.
By contrast, mining output fell 2.0% after a marginal 0.1% increase in January, dragged down by sharper declines in crude oil and condensate production (-4.3% vs -0.4%) and a continued drop in natural gas output (-0.4% vs -2.1%).
