KUALA LUMPUR, November 10, 2026 — Malaysia’s manufacturing sector recorded strong sales growth in the third quarter of 2026, with total sales value increasing 10.7 per cent year-on-year to RM553.5 billion, highlighting the country’s continued industrial expansion and growing demand for manufactured products.

The latest figures released by the Department of Statistics Malaysia (DOSM) on Tuesday showed that the sector accelerated from the 9.3 per cent annual growth recorded in the second quarter.

On a quarter-on-quarter basis, manufacturing sales increased by 5.5 per cent, reflecting stronger business activity across several industrial segments.

The performance provides a positive indication of Malaysia’s manufacturing strength at a time when international trade, technology demand and global supply chains remain important factors influencing economic growth.

Electronics Industry Leads Manufacturing Growth

Electrical and electronics (E&E) products remained one of the strongest contributors to Malaysia’s manufacturing performance.

The increasing demand for electronic components, computer equipment and advanced technology products has supported industrial activity and strengthened the country’s export-oriented manufacturing sector.

Malaysia has established itself as an important production centre for semiconductor-related products and electronic components, supplying international markets across Asia, Europe and North America.

The expansion of technology-related manufacturing also reflects the growing importance of artificial intelligence, digital infrastructure and advanced computing in the global economy.

September Sales Reach RM191.1 Billion

Monthly figures provided additional evidence of the sector’s strong performance.

Manufacturing sales reached RM191.1 billion in September 2026, representing a 12.9 per cent increase compared with the same month last year.

This was faster than the 9.9 per cent annual growth recorded in August, when sales stood at RM185 billion.

On a month-on-month basis, September sales increased by 3.3 per cent.

Among the major manufacturing categories, electrical and electronics products recorded particularly strong growth, with sales rising 23.9 per cent year-on-year.

Petroleum, chemical, rubber and plastic products registered growth of 6.1 per cent, while food, beverages and tobacco products increased by 5.4 per cent.

These figures indicate that industrial expansion was supported by several manufacturing segments, although electronics remained a particularly important contributor.

Export-Oriented Industries Drive Performance

International demand continued to play a major role in Malaysia’s manufacturing expansion.

Export-oriented industries accounted for 73.4 per cent of total manufacturing sales and recorded annual growth of 14.7 per cent in September.

The performance was supported by stronger demand for computer, electronic and optical products.

Meanwhile, domestic-oriented manufacturing industries also improved, recording growth of 8.3 per cent in September compared with 4.4 per cent in August.

The stronger performance of both export-focused and domestic industries suggests that manufacturing activity is receiving support from multiple sources of demand.

Manufacturing Sector Supports Employment

The expansion in manufacturing activity has also contributed to employment and wage growth.

Malaysia’s manufacturing industry employed approximately 2.45 million people in September 2026, representing an increase of 1.4 per cent compared with the same period last year.

Total salaries and wages paid by the sector reached RM8.7 billion, increasing 4 per cent year-on-year.

Sales value per employee climbed 11.3 per cent to RM78,082, indicating that manufacturing sales grew considerably faster than employment.

Average monthly salaries and wages per employee also increased by 2.6 per cent to RM3,568.

These developments suggest that stronger industrial activity is generating additional economic value, although sales growth alone does not establish how much productivity improved.

Malaysia Records RM1.58 Trillion in Manufacturing Sales

The country’s cumulative manufacturing sales performance during the first nine months of 2026 was also encouraging.

From January to September, total manufacturing sales reached RM1.58 trillion, representing an 8.5 per cent increase compared with the corresponding period in 2025.

This was a stronger expansion than the 3.6 per cent growth recorded during the same period a year earlier.

The improvement highlights the importance of manufacturing to Malaysia’s industrial development, export earnings and broader economic activity.

Challenges Remain Despite Strong Industrial Performance

Despite the positive figures, Malaysia’s manufacturing industry continues to face several challenges.

International trade uncertainty, changing demand conditions, production expenses and competition from other Asian manufacturing centres could influence future performance.

Manufacturers must also invest in automation, digital technologies, workforce development and energy efficiency to remain competitive.

The growing importance of semiconductors and advanced electronics creates opportunities, but it also increases the need for specialised skills and reliable supply chains.

Outlook: Manufacturing Remains Important to Malaysia’s Economic Growth

The latest manufacturing figures provide a positive picture of Malaysia’s industrial performance heading into the final quarter of 2026.

Strong electronics demand, expanding export activity and improving domestic manufacturing sales have helped support the sector’s growth.

The ability to maintain this momentum will depend on international demand, investment conditions and the industry’s capacity to adapt to technological changes.

For Malaysia, a stronger manufacturing sector could support job creation, exports, investment and the development of higher-value industries.

The 10.7 per cent increase in third-quarter manufacturing sales therefore represents an encouraging signal for the country’s industrial economy, although sustaining growth will remain the key challenge in the months ahead.