Industrial production in Malaysia grew by 5.9% year-on-year in January 2026, beating market estimates of a 5.4% rise and the previous month’s 4.8% increase. The latest figure also marked the fastest growth since October last year, driven by strong performances in all the industrial sectors. Manufacturing production accelerated to an eighteen-month high (7.3% vs 6.7% in December 2025), mainly boosted by robust output of electrical and electronic products (15.2% vs 12.8%) and food, beverages, and tobacco (12.2% vs 11.2%). Additionally, the generation of electricity increased at a faster rate (6.3% vs 3.8%), while mining output edged up (0.1% vs -2.5%), as crude oil and condensate growth eased (3.8% vs 6.4%) and natural gas output continued to decline (-2.1% vs -7.9%). On a seasonally adjusted monthly basis, industrial activity rose by 0.9% in January, the same pace as in the preceding period.