Malaysia's industrial sector maintained strong momentum in October 2025, with the Industrial Production Index (IPI) rising 6.0% year-on-year (YoY), up from 5.7% in September, according to the Department of Statistics Malaysia (DOSM). On a month-on-month basis, the IPI rebounded 2.1%, reversing September's slight contraction of 0.02%.
The Manufacturing sector led the growth with a 6.5% YoY increase (September: 5.0%), while the Mining sector expanded 5.8% (September: 10.2%). Electricity generation grew modestly by 1.2%, compared with 2.8% in the previous month.
Export-Oriented Manufacturing Drives Growth
The manufacturing sector's performance was driven largely by export-oriented industries, which expanded 7.2% YoY, accelerating from 4.8% in September. The Manufacture of computer, electronics & optical products surged 14.2%, while the Manufacture of vegetable & animal oils & fats grew 12.9%. These gains were in line with a 9.2% increase in Malaysia's manufactured goods exports in October. Month-on-month, export-oriented industries rose 0.9% (September: 0.8%).
Meanwhile, domestic-oriented industries recorded a 4.9% YoY increase, slightly lower than September's 5.3%. Strong contributors included food processing products (+8.7%) and fabricated metal products, excluding machinery & equipment (+7.1%). Month-on-month, domestic-oriented industries declined 1.2%, compared with a 1.5% increase in September.
Mining and Electricity Sector Performance
The Mining sector expanded 5.8% YoY, supported by Crude Oil & Condensate production (+8.8%) and Natural Gas (+3.9%). Month-on-month, the Mining index rebounded sharply 10.1%, after a contraction of 2.9% in September. Meanwhile, the Electricity sector grew 1.2% YoY, with a month-on-month increase of 3.8% (September: -4.4%).
Cumulative Performance for 2025
For the first ten months of 2025, Malaysia's IPI expanded 3.4% YoY, slightly below the 3.7% recorded in the same period last year. The Manufacturing index grew 4.3%, the Mining index rose 0.8%, and the Electricity index increased 0.2%.
The DOSM noted that the IPI figures reflect continued resilience in Malaysia's industrial sector, underpinned by strong export-oriented manufacturing and a steady recovery in domestic-oriented industries.
