KUALA LUMPUR: Malaysia’s Industrial Production Index (IPI) grew 2.7% in April 2025, according to the Department of Statistics (DOSM), falling short of expectations.

According to a Reuters poll of economists, factory output had been expected to rise 3.9%.

DOSM said the IPI growth in April 2025 was mainly ed by a 5.6% rise in the manufacturing sector, while output in the mining and electricity sectors fell by 6.3% and 1.6%, respectively.

In April 2025, export-oriented manufacturing industries grew 6.4%, up from 4.8% in March, driven by a 22.8% surge in the manufacturing of vegetable and animal oils and fats, and an 11.1% rise in electronics and optical products. However, output fell 10.2% month-on-month (M-o-M).

Meanwhile, domestic-oriented industries grew 3.9% in April 2025, up from 2.3% in March. The growth was ed by higher output in food processing (8.2%), fabricated metal products (5.0%), and basic metals (6.0%). On a monthly basis, the sector rose 0.3%.

DOSM said the 6.3% decline in the mining sector in April 2025 was due to lower production of natural gas (-10.0%) and crude petroleum & condensate (-0.7%). On a M-o-M basis, the mining index fell 13.9%, reversing a 17.8% gain in March.

The electricity index ed a decline of 1.6% in April 2025, improving from the 2.2% contraction recorded in the previous month. Compared to March 2025, the electricity index fell 3.1%.

Globally, IPI trended higher in April 2025, with strong year-on-year growth in Taiwan (22.3%) and Vietnam (10.2%), while moderate gains were seen in China (6.1%), Singapore (5.9%), South Korea (4.9%), Thailand (2.2%), the United States (1.5%), and Japan (0.7%).

DOSM said the IPI rose 2.4% in the January–April 2025 period, down from 3.6% in the same period last year. Manufacturing expanded 4.5%, while the mining and electricity sectors declined by 4.0% and 1.7%, respectively.