KUALA LUMPUR (May 8): Malaysia’s industrial output grew at a slower-than-expected pace in March as a contraction of mining activities outweighed gains in the manufacturing and electricity sectors.

The industrial production index — which measures output from factories, mines and power plants — rose 3.1% year-on-year in March 2026, according to the Department of Statistics Malaysia. The print was below Bloomberg survey’s median 3.5% rise but matched February’s 3.1% year-on-year gain.

On a month-on-month basis, the index rebounded 9.3%, reversing a 9.2% decline in February.

Malaysia's factories were churning out more goods at a time when the geopolitical conflict in the Middle East was in full swing.

Manufacturing output grew 5.5% in March, up from 4.2% in February. Export-oriented industries, which account for about two-thirds of manufacturing output, accelerated 6.7%, driven by stronger production of computer, electronics and optical products.

Domestic-oriented industries rose 2.8%, supported by food processing and fabricated metal products, excluding machinery and equipment.

Electricity generation increased 4.9% year-on-year, slightly higher than the 4.6% growth in the previous month.

The mining sector, however, contracted 6.5%, dragged by lower natural gas output as well as decline in crude oil and condensate production.