Malaysia’s industrial production rose 5.9% year-on-year in January 2026, exceeding market expectations of a 5.4% increase and accelerating from 4.8% in December 2025. This was the strongest expansion since October of the previous year, underpinned by solid gains across all major industrial sectors.
Manufacturing output quickened to an eighteen-month high, growing 7.3% compared with 6.7% in December. The improvement was largely driven by stronger production of electrical and electronic products (15.2% vs 12.8%) and of food, beverages, and tobacco (12.2% vs 11.2%).
Electricity generation also picked up, expanding 6.3% after 3.8% previously. Mining output returned to marginal growth, edging up 0.1% following a 2.5% contraction, as crude oil and condensate production grew at a slower pace (3.8% vs 6.4%), while natural gas output continued to decline, though at a less steep rate (-2.1% vs -7.9%).
On a seasonally adjusted month-on-month basis, overall industrial activity increased 0.9% in January, matching the growth rate recorded in the prior month.
