Fueled by robust export demand, Malaysia's industrial output experienced a year-over-year increase of 2.3% in September, with significant contributions from the manufacturing sector, as reported by the Department of Statistics Malaysia (DOSM). Manufacturing output surged by 3.2% in September, while electricity generation rose by 3.9%.
However, the mining sector faced a decline, with output falling by 2.2% year-over-year in September. The increase in manufacturing output during this period was predominantly driven by expansion within export-oriented industries, which reported a growth of 3.4% year-over-year. Among the export industries, the production of rubber products saw a remarkable increase of 8.6%, while the output of computer, electronics, and optical products rose by 5.9%.
Conversely, domestic-oriented industries reported a growth of 2.7% year-over-year in September, although overall monthly performance was dampened by a significant 14.9% decline in the output of motor vehicles, trailers, and semi-trailers. Additionally, the manufacture of processed food products only grew by 3.5% year-over-year. Looking at the broader picture for the third quarter of 2024, Malaysia's industrial production index rose by 3.9% year-over-year, driven primarily by the manufacturing sector, which expanded by 5.8%.
Meanwhile, the mining sector's output decreased by 4.6% year-over-year in the third quarter, although electricity output increased by 5.1%. On a quarter-to-quarter basis, output in the third quarter showed a growth of 3.7% compared to the second quarter. Overall, for the first nine months of the year, Malaysia's industrial output has increased by 3.9% year-over-year..