Kuala lumpur: Malaysia's Industrial Production Index (IPI) expanded 4.7 per cent year-on-year in July 2026, supported by growth in the manufacturing and electricity sectors, according to the Department of Statistics Malaysia (DOSM).

According to BERNAMA News Agency, DOSM reported that the manufacturing and electricity indexes rose 6.4 per cent and five per cent, respectively, while the mining index declined 3.2 per cent. The IPI saw a two per cent decline compared to the preceding month, contrasting with a 5.5 per cent rise in the previous month.

Export-oriented industries remained the primary drivers of manufacturing production in July 2026, recording a 6.7 per cent growth after a 7.6 per cent expansion the previous month. This growth was largely fueled by the manufacture of computer, electronics, and optical products, which maintained a 14.0 per cent increase, while the manufacture of machinery and equipment n.e.c. grew 14.6 per cent. On a month-on-month basis, these industries saw a 3.1 per cent decline, reversing the 10.7 per cent increase in June 2026.

DOSM also noted a 5.8 per cent growth in domestic-oriented industries in July 2026, following a 6.4 per cent increase in June. This growth was mainly supported by the manufacture of basic metals and food processing products, which saw increases of 10.1 per cent and 7.2 per cent, respectively. Compared to the preceding month, domestic-oriented industries increased marginally by 0.4 per cent in July 2026, against a 1.2 per cent growth in June 2026.

In a separate statement, DOSM highlighted that Malaysia's manufacturing sales increased by 9.1 per cent year-on-year to RM177.3 billion in July 2026. This growth was primarily driven by the electrical and electronics products subsector, which grew 17.8 per cent. The food, beverages, and tobacco subsector also contributed with a 3.9 per cent growth, alongside a 3.6 per cent increase in the petroleum, chemical, rubber, and plastic subsector. Month-on-month, the sales value slightly increased by 0.2 per cent from RM177.0 billion recorded in June 2026.

Export-oriented industry sales value grew by 9.9 per cent year-on-year, contributing 72.2 per cent of total manufacturing sales. This performance was anchored by a 19.0 per cent increase in the manufacture of computer, electronic, and optical products, followed by machinery and equipment n.e.c., which rose 17.8 per cent. Coke and refined petroleum products also expanded by 3.3 per cent. Month-on-month, the sales value of export-oriented industries declined by 1.0 per cent.

Meanwhile, domestic-oriented industries recorded a 7.2 per cent year-on-year increase in sales, led by basic metals at 14.9 per cent, food processing products at 9.6 per cent, and motor vehicles, trailers, and semi-trailers at 5.0 per cent.

Regarding employment, the manufacturing sector recorded 2.4 million employees in July, a 1.1 per cent increase year-on-year, while salaries and wages increased 2.8 per cent to RM8.55 billion. The average salary and wages per employee stood at RM3,527, marking a 1.7 per cent rise.

For the first seven months of 2026, cumulative manufacturing sales reached RM1.20 trillion, reflecting a 7.6 per cent growth compared to the corresponding period in 2025.