Industrial production in Malaysia rose 0.3% year-on-year in May 2025, sharply slowing from a 2.7% increase in the previous month and missing market expectations of 1.8%. It was the weakest growth since a decline in December 2023. Manufacturing output grew at a slower pace (2.8% vs 5.6% in April), mainly supported by gains in E&E products (5.6%), food and beverages (11.1%), and basic and fabricated metals (3.5%). Meanwhile, mining and quarrying output contracted more deeply (-10.2% vs -6.3%), weighed down by declines in natural gas (-16.6%) and crude oil & condensate (-1.6%). Simultaneously, the electricity sector edged up 0.4%, following a 1.7% decline in April. In contrast, On a seasonally adjusted monthly basis, industrial output fell 1.3%, much steeper than a 0.2% drop in April, marking the third fall so far this year. For the first five months of the year, production rose 2.0%, easing from a 3.4% increase in the same period in 2024.