Malaysia’s industrial output expanded by 3.1% year-on-year in February 2026, below market estimates of a 5.5% rise and the previous month’s 5.9% increase. The latest figure also marked the softest growth since last June, as growth in two sectors slowed while the mining sector contracted. Manufacturing production slowed to a six-month low (4.2% vs 7.3% in January), mainly driven by rises in output of computer, electronics & optical products (15.7% vs 17.2%) and electrical equipment 3.5% vs 6.1%). Additionally, the generation of electricity increased at a softer rate (4.6% vs 6.2%), while mining output contracted (-2.0% vs 0.1%), weighed by declines in crude oil and condensate (-4.3% vs 3.8%) and natural gas (-0.4% vs -2.1%).