Malaysia’s industrial output rises 1.5% in Feb driven by manufacturing growth - DOSM

MALAYSIA’S Industrial Production Index (IPI) recorded a modest year-on-year growth of 1.5% in February 2025, buoyed by continued expansion in the manufacturing sector, according to the Department of Statistics Malaysia (DOSM).

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the uptick was largely attributable to a 4.8% rise in the manufacturing sector, an improvement over the 3.7% increase posted in January 2025.

“However, output in the mining and electricity sectors declined by 8.9 per cent and 2.8 per cent, respectively,” he said in a statement released today.

On a month-on-month basis, however, the overall IPI fell sharply by 6.8% compared to a marginal 0.4% drop in January, highlighting volatility in industrial output at the start of the year.

The reduction was seen in the mining sector, with output plunging 8.9% year-on-year in February.

“This contraction was driven by a decline in the output of natural gas and crude oil and condensate, which recorded a decline of 10.3 per cent and 6.7 per cent, respectively,” Mohd Uzir explained.

On a monthly basis, the mining index saw a steeper fall, dropping to -12.5% in February from -0.5% in the previous month.

The electricity sector also remained subdued, with output decreasing by 2.8% year-on-year in February. On a month-to-month basis, the electricity index registered a further decline of 6.6%, following a marginal 0.2% dip in January.

Commenting on the global context, Mohd Uzir noted that several key economies also recorded subdued or negative industrial production growth during the same period.

“*IPP for several other countries showed a downward trend in February 2025, including China (5.9 per cent), the United States (1.4 per cent), Japan (0.3 per cent), Singapore (-1.3 per cent) and Thailand (-3.9 per cent),” he said.

He added that some economies bucked the trend, however, with Taiwan, Vietnam, and South Korea reporting substantial growth.

“In contrast, Taiwan (17.9 per cent), Vietnam (17.2 per cent) and South Korea (7.0 per cent) showed a significant increase in February 2025,” he noted.

Despite challenges in the mining and electricity segments, the steady growth in Malaysia’s manufacturing sector offered a silver lining, suggesting continued resilience in domestic industrial activity even amid broader global headwinds. – April 11, 2025