Malaysia’s industrial production rose 6.5% year-on-year in June 2026, easing from an 8.4% increase in May, which had been the strongest expansion since September 2022. Growth slowed sharply in the mining sector, with output up just 3.1% following a 19.8% jump in the previous month. This moderation reflected a deeper decline in crude oil and condensate production (-3.3% vs -0.7%) and a significant deceleration in natural gas output growth (7.4% vs 37.4%).
By contrast, manufacturing remained the main engine of overall industrial growth, with output rising 7.3% compared with 6.6% in May. The sector was supported by stronger production of wood products, furniture, paper products, and printing (5.7% vs 3.8%), as well as a marked rebound in transport equipment and other manufactures (9.4% vs -4.8%).
Electricity generation also accelerated, increasing 6.7% year-on-year after a 4.8% gain in May. On a seasonally adjusted month-on-month basis, however, total industrial output declined 0.5% in June, extending the 0.3% contraction recorded in the previous period.
