Kuala lumpur: The manufacturing sector in Malaysia witnessed a significant rise in sales value, recording a 7.1 percent year-on-year increase to RM169.4 billion in January 2026. This follows a 6.4 percent year-on-year growth to RM168.6 billion in December 2025, as reported by the Department of Statistics Malaysia (DOSM).

According to BERNAMA News Agency, the chief statistician, Datuk Seri Dr. Mohd Uzir Mahidin, stated that the growth was largely driven by the electrical and electronics (E and E) products sub-sector, which experienced a 15.6 percent increase in January 2026, up from 12.6 percent in December 2025. The food, beverages, and tobacco sub-sector, along with non-metallic mineral products, basic metal, and fabricated metal products, also contributed to this growth, rising by 12.4 percent and 5.7 percent respectively.

The statement also highlighted a month-on-month sales value increase of 0.5 percent, from RM168.6 billion in December 2025. The export-oriented industries, making up 70.2 percent of total sales, saw a 7.2 percent growth in January 2026 compared to a 6.8 percent increase in December 2025. This performance was notably influenced by a 17.9 percent rise in the manufacture of computer, electronics, and optical products.

Additionally, the manufacture of vegetable and animal oils and fats rose by 13.0 percent, while machinery and equipment not elsewhere classified grew by 7.7 percent. The export-oriented industries also noted a 0.2 percent rise compared to the previous month.

Domestic-oriented industries expanded by 6.9 percent in January 2026, following a 5.6 percent rise in the prior month. The growth was mainly supported by an 11.6 percent increase in food processing products and a 5.9 percent rise in both basic metals and fabricated metal products manufacturing, excluding machinery and equipment. A month-on-month increase of 1.0 percent was also recorded for the domestic-oriented industries.

Employment figures in the sector rose to 2.4 million, marking a 1.3 percent increase from December 2025's 1.1 percent growth. The rise was primarily driven by employment in the food, beverages, and tobacco (2.0 percent), E and E products (1.8 percent), and non-metallic mineral products, basic metal, and fabricated metal products (1.3 percent) sectors.

Moreover, salaries and wages paid in the manufacturing sector expanded by 2.8 percent, amounting to RM8.71 billion in January 2026, although this was a 4.4 percent decline from RM9.11 billion in the previous month. The sales value per employee was RM69,779, reflecting a 5.7 percent increase, while the average salaries and wages per employee rose by 1.4 percent year-on-year to RM3,590.