Malaysia’s IPI Accelerates to 4.9% in August on Strong Mining Output

Malaysia’s Industrial Production Index (IPI) expanded by 4.9% year-on-year in August 2025, accelerating from 4.2% in July, according to the Department of Statistics. The stronger performance was mainly attributed to a surge in mining output, supported by higher production of crude petroleum and natural gas. Manufacturing output, however, grew at a slower pace of 2.8% compared to 4.4% in the previous month.

IPI up with mining

Sales of manufactured goods continued to show resilience, rising 3.5% in July for the 19th consecutive month, with total sales reaching RM162.5 billion — the highest level in nearly a year. Stronger sales were recorded in iron and steel products as well as electrical and electronic (E&E) components.

Analysts maintained their forecast that Malaysia’s IPI growth will moderate to around 2.0% for 2025, citing expectations of weaker external demand and the impact of higher US tariffs.

Business News