Malaysia’s industrial output expanded in October, but at a slower-than-anticipated pace, with gains in factory production and electricity generation offset by continued contraction in mining activity, according to official data released on December 10, The Edge Malaysia reported.

The Industrial Production Index (IPI), which tracks output from manufacturing, energy and mining sectors, grew 2.1% year-on-year, below the 2.6% growth forecast and slightly less than September’s 2.3% increase. Month-on-month, the index rebounded by 1.7%, reversing a 0.7% decline in September, data from the Department of Statistics Malaysia (DOSM) showed.

The October performance aligned with moderate industrial growth trends in regional markets like China, Singapore, Vietnam and Taiwan. South Korea and Japan also posted slight rebounds, while the United States and Thailand experienced declines.

Malaysia’s manufacturing sector, which plays a crucial role in the IPI, grew 3.3% y/y, marginally outpacing September’s 3.2%. The electricity sector’s growth decelerated to 2.5% from 3.9% in September. Meanwhile, the mining sector shrank for the fourth consecutive month, contracting 2.8% compared to a 2.2% decline the month prior.

Domestic-oriented industries saw an improvement, with growth rising to 3.3% in October from 2.7% in September, driven by increased production of fabricated metal products. Export-oriented industries maintained a 3.3% growth rate, supported by higher output in vegetable and animal oils, fats, and rubber products.

Manufacturing sales reached MYR161.3bn ($36.4bn) in October, marking a 3% y/y increase. However, sales fell 0.6% on a monthly basis. The food, beverages and tobacco sub-sector led the gains with an 11.2% rise, followed by a 3.2% increase in the electrical and electronics sub-sector.

Despite the slower growth, the figures reflect ongoing resilience in Malaysia’s industrial base amid global economic headwinds.