Kuala lumpur: Malaysia’s Industrial Production Index (IPI) growth slowed to 4.2 percent year-on-year in July 2025, compared to 5.8 percent in July 2024. However, the IPI performance was higher than the 2.9 percent recorded in June 2025.

According to BERNAMA News Agency, the Statistics Department Malaysia (DoSM) reported that the IPI expansion was primarily driven by the manufacturing sector, which increased by 4.4 percent, up from 3.6 percent in June 2025. The mining sector also showed a rebound, registering a 4.3 percent increase from a slight decline of -0.01 percent in the previous month.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin provided further insights, indicating that the electricity sector continued to grow by 1.6 percent, though at a slower pace than the 2.3 percent growth seen in June 2025. The increase in manufacturing output was buoyed by higher production in export-oriented industries, which rose by 4.1 percent in July 2025, compared to 2.9 percent in June 2025. Key contributors to this growth included the manufacture of computer, electronics, and optical products, which increased by 8.5 percent, and machinery and equipment, which saw a 10.2 percent rise.

Mohd Uzir also noted a significant surge of 11.1 percent in furniture manufacturing during the month. He highlighted that the year-on-year expansion mirrored the country’s manufactured goods export performance, which showed an improved, albeit smaller, decline of 1.5 percent in July 2025.

Meanwhile, domestic-oriented industries maintained stability at 5.0 percent, slightly down from 5.1 percent in June 2025. However, domestic-oriented industries did experience a rise to 1.0 percent, an improvement from the -3.1 percent recorded in June 2025.

The chief statistician further elaborated on the mining sector’s production increase of 4.3 percent in July 2025, supported by a growth in the crude oil and condensate index, which increased by 1.0 percent after a decline of -3.2 percent in June 2025. The natural gas index also saw a notable rise of 6.8 percent, up from 2.3 percent in June 2025.

Electricity generation experienced a year-on-year growth of 1.6 percent in July 2025, though it had decreased from the previous month’s 2.3 percent. On a month-on-month basis, the electricity index rebounded to a positive 5.5 percent, recovering from a decline of -4.6 percent in June 2025.

For the first seven months of 2025, Mohd Uzir reported that the IPI grew at a slower rate of 2.4 percent compared to 4.0 percent during the same period in 2024. This was influenced by the manufacturing index, which grew by 4.1 percent. Conversely, the mining and electricity indexes recorded decreases of 3.2 percent and 0.4 percent, respectively.