Kuala Lumpur:Malaysia's Industrial Production Index (IPI) witnessed a significant increase of 6.3% year-on-year in September, primarily driven by the manufacturing sector, which recorded sales valued at RM191.1 billion.

According to BERNAMA News Agency, the Department of Statistics Malaysia (DOSM) highlighted that the IPI's growth momentum was fueled by a 9.4% expansion in the manufacturing output sector and a 10.7% rise in the electricity generation sector. However, the mining sector experienced a decline of 9.4%, attributed to reduced outputs in crude petroleum and condensate by 11.8% and natural gas by 7.9%.

In terms of monthly performance, the IPI showed a 1.3% increase from August 2026, supported by a 2.9% growth in the manufacturing sector. For the first nine months of 2026, the IPI grew by 5.7% compared to the same period in 2025, which saw a growth of 2.9%.

The third quarter of 2026 recorded a 5.3% increase in IPI performance, driven by manufacturing and electricity sectors' growth of 7.8% and 8.3%, respectively, which helped balance a 6.7% contraction in the mining sector. On a quarter-on-quarter basis, the IPI maintained positive growth with a 4.3% increase.