Fueled by a rise in manufacturing output, Malaysia's industrial production index experienced a year-on-year increase of 2.1% in October, with a monthly gain of 1.7% from September, as stated by the Department of Statistics Malaysia (DOSM) on Tuesday. In September, the industrial output had seen a slightly stronger growth of 2.3% on an annual basis.
In October, the manufacturing sector's output advanced by 3.3% year-on-year, while electricity generation increased by 2.5%. Conversely, the mining segment faced a decline of 2.8% compared to last year, according to the DOSM. Examining export-oriented industries, the production of vegetable, animal oils, and fats surged by 12.7% year-on-year in October.
Similarly, the output of rubber products leaped by 10.9% in the same period. For domestic industries, the processed foods category saw a year-on-year increase of 4.5%, while fabricated metal products (excluding machinery and equipment) experienced a rise of 6.5%, as reported by the DOSM. Throughout the first 10 months of 2025, Malaysia's industrial production exhibited a year-on-year growth of 3.7% in comparison to the same timeframe in 2023, according to the DOSM.
The manufacturing sector thrived with a year-on-year increase of 4.2% during this January to October period. Additionally, the electricity index grew by 6% on a year-to-year basis, and the mining sector saw a modest rise of 0.9%. However, it is important to note that Malaysia's manufacturing output may be entering a period of slowdown, based on insights from recent reports by S&P Global.
In early December, S&P Global announced that its seasonally adjusted Malaysia manufacturing purchasing managers index (PMI) dropped to 49.2 in November from 49.5 in October, falling below the critical 50-point threshold that differentiates growth from contraction..