Malaysia’s Industrial Production Index (IPI) rose 6.3 per cent year-on-year in September, lifted by manufacturing output that pushed the sector’s monthly sales value to RM191.1 billion, New Straits Times reported, citing the Statistics Department.
Manufacturing output advanced 9.4 per cent in the month, up from 7.4 per cent in August, while electricity generation climbed 10.7 per cent. Mining fell 9.4 per cent, dragged by crude petroleum and condensate, which slipped 11.8 per cent, and natural gas, which dropped 7.9 per cent.
The Statistics Department said the index moved up 1.3 per cent from August, when it had gained 2.6 per cent, on a 2.9 per cent lift in manufacturing.
Export-oriented industries led the manufacturing gain, expanding 10.7 per cent against 9.1 per cent a month earlier. The manufacture of computer, electronic and optical products jumped 19.3 per cent, followed by vegetable and animal oils and fats at 7.9 per cent.
Domestic-oriented industries rose 6.6 per cent (August 2026: 3.9 per cent), helped by the manufacture of motor vehicles, trailers and semi-trailers at 10.6 per cent, basic metals at 10.2 per cent and processed food products at 7.5 per cent.
Capacity utilisation in manufacturing climbed to 84.9 per cent from 84.1 per cent. Electrical and electronic products ran at 88.6 per cent, while petroleum, chemical, rubber and plastic products used 81.7 per cent of their capacity.
Sales value for the sector grew 12.9 per cent year-on-year to RM191.1 billion from RM185.0 billion in August, with a 3.3 per cent rise month-on-month.
The sector employed 2.45 million people in September, 1.4 per cent more than a year earlier. Total salaries and wages paid rose 4.0 per cent to RM8.7 billion, sales value per employee grew 11.3 per cent to RM78,082 and average monthly salaries per employee moved up 2.6 per cent to RM3,568.
For the third quarter, the IPI grew 5.3 per cent year-on-year (Q2 2026: 7.7 per cent) and 4.3 per cent from the previous quarter. Manufacturing rose 7.8 per cent and electricity 8.3 per cent, offsetting a 6.7 per cent contraction in mining.
Manufacturing sales value for the quarter reached RM553.5 billion, up 10.7 per cent year-on-year from RM524.8 billion and 5.5 per cent quarter-on-quarter. The quarterly wage bill stood at RM25.8 billion, a 3.4 per cent increase, while sales value per employee rose 9.1 per cent to RM226,091.
Over the first nine months of 2026, the IPI grew 5.7 per cent against 2.9 per cent in the same period a year earlier. Manufacturing sales value for the period hit RM1.58 trillion, an 8.5 per cent rise from 3.6 per cent in January to September 2025, and total salaries and wages paid reached RM77.4 billion, up 2.9 per cent.
