Malaysia’s industrial production grew at a much slower pace in May 2025 amid deepening contraction in the mining sector and a slowdown in manufacturing activities.
The industrial production index — which measures output from factories, power plants and mines — rose just 0.3% year-on-year, the Department of Statistic Malaysia said on Friday. That’s significantly lower than the median 2.1% increase predicted in a Bloomberg poll and May’s 2.7% year-on-year gain.
The index, however, was up 1.1% month-on-month in May after an 8.0% decline in April.
On a year-on-year basis, the manufacturing sector grew 2.8% compared with 5.6% in April. Growth of export-oriented industries, which form the bulk of the manufacturing sector, decelerated largely due to a drop in the manufacture of coke and refined petroleum products.
Some sub-sectors helped offset the weakness as the manufacture of vegetable and animal oils and fats surged, while the manufacture of computer, electronics and optical products grew.
Meanwhile, the domestic-oriented industries grew at a more modest pace in May, dragged by a contraction in the manufacture of motor vehicles, trailers and semi-trailers.
The mining sector otherwise continued to weigh heavily on overall industrial output, falling 10.2% year-on-year in May as production of natural gas and crude oil and condensates contracted. Compared to April, the mining index was down 12.8%.
Meanwhile, electricity generation rose 0.4% year-on-year, rebounding from a 1.7% contraction in April. The electricity index jumped 7.9% month-on-month, recovering from a 3.2% decline in the previous month.
Manufacturing sales totalled RM158.7 billion in May, a 2.4% increase from a year earlier, the department said in a separate statement. In April, sales were up 4.8% year-on-year.
Sales in the sector were mostly supported by food, electrical-and-electronics, and non-metallic mineral products, basic metal and fabricated metal products sub-sectors.
Source: Investing