Kuala lumpur: Malaysia's Industrial Production Index (IPI) expanded by 4.8 percent year-on-year in December 2025, driven by strong output growth in the manufacturing sector, said the Department of Statistics Malaysia (DOSM).
According to BERNAMA News Agency, Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin noted that the IPI showed further improvement in December 2025, following a 4.3 percent growth in November, maintaining a positive monthly trend for two consecutive years. The December expansion was primarily supported by a 6.7 percent growth in the manufacturing sector, up from 4.9 percent in November, coupled with a 3.7 percent increase in electricity output compared to 2.7 percent the previous month.
However, Mohd Uzir highlighted that the mining sector's production decreased by 2.5 percent in December 2025. Month-on-month, the IPI rebounded to 0.2 percent from a negative 1.1 percent in November 2025. The output of export-oriented industries, making up two-thirds of the manufacturing sector, expanded by 7.5 percent in December 2025, compared with a 5.0 percent increase in November.
The growth in export-oriented industries was significantly supported by the manufacture of computers, electronics, and optical products, which rose by 13.2 percent, alongside an 18.1 percent increase in the manufacture of vegetable, animal oils, and fats. This expansion mirrored the country's export performance, which surged 10.4 percent in December 2025. Compared to November 2025, export-oriented industries saw a slight 0.1 percent decline following a 1.8 percent contraction the previous month.
Meanwhile, the mining sector's production in December 2025 dropped by 2.5 percent, affected by a 7.9 percent decline in the natural gas index, while the crude oil and condensate index increased by 6.4 percent. The mining index showed a slight decline of 0.9 percent in December, improving from the 3.1 percent contraction registered in November 2025.
Electricity generation expanded by 3.7 percent year-on-year in December 2025, following a 2.7 percent increase in the previous month. Compared to November 2025, the electricity index turned around by 2.0 percent, recovering from the previous month's negative 3.0 percent.
As for the performance of other countries, several nations, including China, Vietnam, Thailand, Japan, and Taiwan, recorded increases in their respective IPIs. Conversely, South Korea and the United States experienced declines this month.
Mohd Uzir concluded that the IPI remained stable, growing by 3.6 percent in 2025 compared to 3.7 percent in 2024, with all sectors posting positive growth, namely the manufacturing index at 4.5 percent, the mining index at 0.6 percent, and the electricity index at 0.8 percent.