KUALA LUMPUR (May 8): Malaysia’s industrial production rose at a faster-than-expected pace in March, led by manufacturing activities and a turnaround in mining output, official data on Thursday showed. Electricity generation, however, dipped.

The industrial production index — which measures output from factories, power plants and mines — rose 3.2% in March when compared to the same month in 2024, the Department of Statistics Malaysia said. That’s significantly higher than the median 2.1% increase in a Bloomberg survey and February’s 1.5% year-on-year rise.

On a month-on-month basis, the index surged 9.3% in March.

The gain was in line with gains in China, Singapore and Thailand while outperforming slowing growth in Taiwan, Vietnam, South Korea and the US. Industrial output in Japan contracted during the same month.

On a year-on-year basis, Malaysia’s key manufacturing sector growth decelerated to 4.0% from 4.8% a month earlier while mining output rose 1.8% compared to an 8.9% contraction in February. Electricity generation, however, decreased 2.7% versus February’s decline of 2.8%.

Export-oriented industries grew at a slower pace of 4.8% versus a 5.7% increase a month earlier, mainly driven by computer, electronic and optical products as well as vegetable and animal oils and fats.

Domestic-oriented industries also rose 2.3% in March but slower than the 2.9% gain in February, supported by food processing products, fabricated metal products, and other non-metallic mineral products.

Manufacturing sales totalled RM164.3 billion in March, a 3.7% increase though the rate was lower than February’s 4.7%, the department said in a separate statement. When compared to February, sales were up 7.3%.

Sales in the sector were mostly supported by food, electrical-and-electronics, and non-metallic mineral products, basic metal and fabricated metal products sub-sectors.