Industrial production in Malaysia rose more than anticipated in June, driven by increased manufacturing activities and a rebound in mining output, according to official data published on Friday.

The industrial production index, which tracks output from factories, power plants, and mines, increased by 5.0% in June compared to the same month in 2023, according to the Department of Statistics.

This exceeded the 4.2% rise predicted in a Bloomberg survey and was a significant improvement from May's 2.4% year-on-year growth.

On a month-on-month basis, the industrial production index increased by 4.8% in June, accelerating from May's growth rate of 3.5%.

The highlights “positive momentum” for six straight months, according to a statement by chief statistician, Datuk Seri Dr Mohd Uzir Mahidin.

The latest reading aligns with the industrial production figures in China, South Korea, Vietnam, Taiwan, and the US for the same month. However, industrial production saw a decline in Singapore, Thailand, and Japan, The Edge Malaysia reports.

In addition, the key manufacturing sector grew by 5.2% year-on-year in June, up from a 4.6% increase in May, while mining expanded by 4.9%, recovering from a 6.9% contraction in May. 

Meanwhile, electricity generation rose by 3.5%, though this was a moderation from May's 4.5% growth.

Moreover, domestic-oriented industries experienced a slower growth rate of 4.6% in June, compared to May's 6.4% increase, primarily due to a drop in the production of motor vehicles, trailers, and semi-trailers. 

Whereas export-oriented industries grew by 6.4%, which was consistent with the growth rate of manufactured goods exports for the month.

Furthermore, manufacturing sales increased for the sixth consecutive month on a year-on-year basis, rising by 5.9% to RM156.1 billion in June, according to a separate statement from the statistics department.

The increase was mainly driven by the electrical-and-electronics products sub-sector, which saw a 5.9% rise, and was further bolstered by an 8.6% gain in the food, beverage, and tobacco sub-sector.