Kuala lumpur: The Industrial Production Index (IPI) experienced a rise of 3.1 percent year-on-year in March 2026, driven by a 5.5 percent increase in manufacturing output and a 4.9 percent rise in electricity output, announced the Department of Statistics Malaysia (DOSM).

According to BERNAMA News Agency, the mining sector continued to face challenges, recording a 6.5 percent contraction in March 2026 compared to a 2.0 percent dip in February 2026. On a month-on-month basis, the IPI rebounded by 9.3 percent following a 9.2 percent decline in the previous month.

Chief statistician Datuk Seri Mohd Uzir Mahidin indicated that export-oriented industries, comprising two-thirds of the manufacturing sector, expanded by 6.7 percent in March 2026, up from 5.0 percent in the preceding month. This growth was primarily supported by the manufacture of computers, electronics, and optical products, which surged by 14.8 percent, and vegetable and animal oils and fats, which rose by 13.5 percent.

Mohd Uzir highlighted that this year-on-year growth aligns with the country's export performance, which increased by 8.3 percent in March 2026. Export-oriented industries saw an 11.9 percent rise compared to February 2026, after experiencing a negative growth of 8.1 percent in the previous month.

He also noted that the mining sector's 6.5 percent decline in March 2026 was due to decreases in both crude oil and condensate production, which fell by 11.3 percent, and natural gas output, which recorded a further decrease of 3.4 percent.

Meanwhile, electricity generation saw a year-on-year increase of 4.9 percent in March 2026, up from 4.6 percent in February 2026. On a month-on-month basis, the electricity index surged by 12.1 percent, compared to an 8.0 percent decline in February 2026.

Domestic-oriented industries recorded a 2.8 percent increase in March 2026, slightly up from 2.7 percent in the previous month. This growth was driven by the manufacture of food processing products, which rose by 7.2 percent, and the manufacturing of fabricated metal products, except for machinery and equipment, which increased by 4.0 percent. Mohd Uzir added that compared to the previous month, domestic-oriented industries rebounded by 1.4 percent.