KUALA LUMPUR (April 9): Malaysia’s industrial output in February 2026 posted its slowest growth since June 2025, weighed down by contractions in the manufacturing and electricity sectors, official data showed on Thursday.

The industrial production index (IPI) — which measures output from factories, mines, and power plants — rose a slower-than-expected 3.1% in February, as compared to the same month in 2025, the Department of Statistics Malaysia (DOSM) said in a statement. That compares to the median 5% increase predicted in a Bloomberg survey and January’s 5.9% year-on-year gain. 

Compared with the previous month, the index slipped into negative territory, contracting 9.2% after a 0.6% increase previously.

According to the DOSM, manufacturing growth eased to 4.2% in February from 7.3% in January, while electricity output also expanded at a slower pace of 4.6% compared with 6.2% previously. Meanwhile, the mining sector contracted 2%, reversing a marginal 0.1% expansion recorded in January 2026.

Manufacturing output growth moderated to 5% year-on-year, down from 7.8% in January, dragged by slower expansion in key segments. The manufacture of computer, electronic and optical products grew 15.7%, easing from 17.2% previously, while electrical equipment output rose 3.5%, (down from 6.1%). 

Exports of manufactured goods also lost momentum, growing only 7.1% compared with 11.9% in the previous month.

The mining sector weakened, with output declining 2% amid a 4.3% drop in crude oil and condensate production, reversing a 3.8% increase in January. Natural gas output edged down 0.4%, compared with a 2.1% contraction previously. The mining index plunged 14.3%, after rising 2.1% in the preceding month.

Meanwhile, electricity generation growth eased to 4.6% year-on-year in February (January: 6.2%).

Globally, industrial production growth moderated across several economies, including the US (1.4%), Japan (0.3%), Vietnam (1.0%) and Taiwan (17.8%). Meanwhile, Singapore (-0.05%), South Korea (-2.2%) and Thailand (-0.04%) recorded contractions. In contrast, China posted stronger growth of 6.3% during the month, the DOSM said.