Overview

Malaysia's Industrial Production Index improved to 4.2 per cent in July 2025,
propelled by acceleration in the Manufacturing and Mining sectors

The Industrial Production Index rose at 4.2 per cent in July 2025 after recording a modest growth of 2.9 per cent in the preceding month. The expansion was primarily induced  by Manufacturing sector, which increased by 4.4 per cent (June 2025: 3.6%), while the Mining sector rebounded to 4.3 per cent (June 2025: -0.01%). Moreover, the Electricity sector grew by 1.6 per cent, remaining positive albeit at a slower rate compared to 2.3 per cent in June 2025. In comparison with the preceding month, the IPI edged down to negative growth of 0.3 per cent, in contrast to the positive 7.5 per cent recorded in the previous month. 

The increase in Manufacturing output in July 2025 was supported by higher production in export-oriented industries by 4.1 per cent as against 2.9 per cent recorded in June 2025. This upturn was primarily led by the Manufacture of computer, electronics & optical products; and the Manufacture of machinery & equipment n.e.c., which registered increases of 8.5 per cent and 10.2 per cent, respectively. Furthermore, the Manufacture of furniture experienced a surge of 11.1 per cent during the month. The year-on-year expansion mirrored the country's manufactured goods export performance improved with a smaller decline of 1.5 per cent in July 2025. On a month-on-month comparison, the export-oriented industries fell by 2.2 per cent as against positive growth at 11.9 per cent in June 2025.

In the meantime, the domestic-oriented industries remained stable at 5.0 per cent as opposed to the increase of 5.1 per cent recorded in June 2025. The sustained growth was contributed by the positive momentum recorded in all sub-sectors except for Manufacture of paper & paper products which posted a decrease of 2.1 per cent in July 2025. The manufacturing output related to construction activities namely the Manufacture of basic metals; and Manufacture of fabricated metal products, except machinery & equipment increased by 7.4 per cent and 4.1 per cent, respectively. In comparison with June 2025, the domestic oriented industries turned around to 1.0 per cent as compared to negative 3.1 per cent registered in the previous month.

The production of Mining sector in July 2025 picked up by 4.3 per cent, underpinned by increase in both components where Crude Oil & Condensate index rebounded by 1.0 per cent (June 2025: -3.2%), followed by the Natural Gas index expanded further by 6.8 per cent (June 2025: 2.3%). As compared to the previous month, the Mining index moderated to a positive 2.2 per cent, down from the positive growth of 15.8 per cent recorded in June 2025. Meanwhile, Electricity generation grew by 1.6 per cent year-on-year in July 2025 (June 2025: 2.3%). On a month-on-month comparison, the Electricity index rebounded to a positive 5.5 per cent (June 2025: -4.6%).

Looking at the performance of several countries, the IPI was increased further in United States (1.4%), South Korea (5.0%) and Vietnam (11.8%). Conversely, Japan and Thailand experienced a decline of 0.9 per cent and 4.0 per cent respectively in July 2025.

Concluding the IPI performance for the first seven months of 2025, the IPI grew at a slower rate of 2.4 per cent as compared to the same period of the previous year (January - July 2024: 4.0%), influenced by the Manufacturing index (4.1%). Conversely, the Mining index and Electricity index recorded a decreased at 3.2 and 0.4 per cent, respectively.

The full publication of the Industrial Production Index, July 2025 can be downloaded through eStatistik portal.

Released by:

DEPARTMENT OF STATISTICS MALAYSIA

11 September 2025

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