KUALA LUMPUR (Aug 11): Malaysia’s industrial output grew at a weaker-than-expected pace in June as oil and gas extraction slowed sharply while manufacturing activities and electricity generation picked up.

The industrial production index — which measures output from factories, power plants and mines — rose 6.5% when compared to June 2025, according to the Department of Statistics Malaysia. The print was below Bloomberg consensus’ 7.2% rise and May’s revised 8.5% year-on-year gain.

On a month-on-month basis, the index climbed 5.5% in June, much faster than May's pace of 1.4%.

Industrial production across Asian economies has shown a mixed June performance amid supply chain disruption and higher costs of fuel and raw material.

Technology heavyweights like South Korea, Japan and Taiwan have seen faster growth while output decelerated in Singapore and contracted in Thailand.

Year-on-year, manufacturing output rose 7.3% compared to May’s 6.6% increase. Export-oriented industries, which accounted for about two-thirds of manufacturing output, climbed 7.6%, driven by computer, electronics and optical products as well as coke and refined petroleum products.

Production from domestic-oriented industries were 6.4% higher led by robust momentum in the category covering motor vehicles, trailers and semi-trailers as well as growth of basic metals.

Electricity generation increased 6.7%, much higher than the 4.8% gain in May.

The mining sector expanded 3.1%, moderating from a 19.8% surge in May as higher natural gas output offset a further decline in crude oil and condensate.