Malaysia’s industrial output expanded faster than expected in January, led by an acceleration in factory production and a surge in electricity generation, official data showed.

The industrial production index — which tracks output from factories, power plants, and mines — rose 5.9% in January 2026 when compared to the same month in 2025, the Department of Statistics said in a statement on Tuesday.

A Bloomberg poll of economists had predicted a median 5.0% rise. The latest reading was also higher than December 2025’s 4.8% year – on – year gain.

On a month – on – month basis, the index was up 0.7% in January.

The latest reading is in line with the increase in industrial output seen in other major exporting nations including China, South Korea, Singapore, Vietnam, and Taiwan.

Output from the key manufacturing sector grew 7.3% in January. Export – oriented industries, which accounted for two-thirds of manufacturing sector, picked up during the month supported mainly by the computer, electronics and optical products as well as vegetable and animal oils and fats.

Growth of domestic – oriented industries was also faster in January driven by food processing products and fabricated metal products.

Production from mining activities turned around with a 0.1% increase on the back of higher crude oil and condensate that offset a decline in natural gas output while the electricity index picked up pace to 6.3% in January.