Malaysia’s Manufacturing Sales Climb 4.3% in September, Reaching RM169.3 Billion

Credit: troopers.com.my

Malaysia’s manufacturing sector maintained its growth momentum in September 2025, with sales rising 4.3% year-on-year to RM169.3 billion, driven by stronger performance in the food, beverages & tobacco and electrical & electronics (E&E) sub-sectors.

The latest data from the Department of Statistics Malaysia (DOSM) showed that the industry’s overall growth pace accelerated compared to 2.7% in August 2025, reflecting a resilient industrial base amid global supply chain adjustments and steady domestic demand.

Food and Electronics Lead the Upswing

The Food, beverages & tobacco sub-sector led the expansion with a robust 9.1% growth in September, slightly easing from 9.6% in August but remaining the top contributor to manufacturing sales.

This was followed by the Electrical & electronics products sub-sector, which recorded a 6.4% increase showing a notable rebound from 3.7% in the previous month.

Meanwhile, non-metallic mineral products, basic metal & fabricated metal products rose 2.7%, supporting the sector’s steady performance.

On a month-on-month basis, total manufacturing sales edged up 0.6%, rising from RM168.3 billion in August to RM169.3 billion in September.

Export-Oriented Industries Remain Dominant

Export-oriented industries which account for 72.3% of Malaysia’s total manufacturing sales grew 3.8% year-on-year, improving from 2.0% in August.

The expansion was underpinned by:

• Vegetable & animal oils and fats manufacturing, up 7.8%;
• Computer, electronics & optical products, up 6.1%; and
• Machinery and equipment (n.e.c.), up 5.2%.

On a monthly basis, export-oriented industries expanded by 0.7%, reflecting steady external demand despite global trade uncertainties.

Analysts say the uptick in electronics-related exports may signal early signs of recovery in the semiconductor cycle, which is crucial for Malaysia’s trade-dependent economy.

Domestic Demand Boosts Locally-Oriented Industries

Domestic-oriented industries also performed strongly, posting a 5.7% increase compared to 4.5% in August.

Growth was largely driven by:

• Manufacture of food processing products, up 10.5%;
• Manufacture of basic metals, up 4.8%; and
• Fabricated metal products (except machinery and equipment), up 4.1%.

Month-on-month, these industries saw a 0.3% increase, reflecting the resilience of Malaysia’s domestic consumption and construction-related activities.

Employment and Wages Continue to Rise

The manufacturing sector employed 2.4 million people in September 2025, up 1.0% year-on-year.

Employment growth was strongest in:

• Food, beverages & tobacco (+1.9%),
• Electrical & electronics products (+1.4%), and
• Non-metallic mineral, basic metal & fabricated metal products (+0.9%).

Compared to the previous month, the number of employees increased by 0.5%, indicating gradual hiring momentum.

Wages in the sector also continued to improve. Total salaries and wages rose 2.0% to RM8.4 billion, while the average monthly wage per employee climbed 1.1% to RM3,479.

The sales value per employee reached RM70,126, up 3.3% year-on-year, reflecting higher productivity alongside moderate wage gains.

Third Quarter Overview

For the third quarter of 2025, Malaysia’s manufacturing sector recorded total sales of RM500.1 billion, up 3.5% from a year earlier (Q2 2025: +3.4%).

Key contributors during the quarter included:

• Food, beverages & tobacco (+9.2%);
• Electrical & electronics products (+5.6%).

Employment and wages in the quarter also increased 1.0% and 2.0%, respectively, underscoring sustained industrial stability heading into the year’s final quarter.

Year-to-Date: RM1.5 Trillion in Manufacturing Sales

From January to September 2025, cumulative manufacturing sales amounted to RM1.5 trillion, up 3.6% compared to the same period last year.

While this represents a slightly slower pace than the 4.6% growth recorded in 2024, the figures highlight continued resilience amid global economic headwinds.

During the nine-month period:

• The number of employees rose 1.0% to 2.4 million;
• Salaries and wages increased 1.9% to RM75.2 billion; and
• Sales value per employee stood at RM603,051, up 2.6%.

According to DOSM, data for September 2025 remains provisional and will be updated once more information becomes available in the October 2025 publication.

The full report, Monthly Manufacturing Statistics, Malaysia — September 2025, can be accessed via the eStatistik portal.

Key Highlights at a Glance:

• Sales value: RM169.3 billion (+4.3% y/y; +0.6% m/m)
• Top sub-sectors: Food, beverages & tobacco (+9.1%), E&E (+6.4%)
• Export-oriented industries: +3.8% (72.3% of total sales)
• Domestic-oriented industries: +5.7%
• Employment: 2.4 million (+1.0%)
• Average wage per employee: RM3,479 (+1.1%)
• Total quarterly sales (Q3 2025): RM500.1 billion (+3.5%)
• Cumulative Jan–Sept 2025 sales: RM1.5 trillion (+3.6%)

Malaysia’s manufacturing sector grew 4.3% in September 2025, recording RM169.3 billion in sales, a stronger performance than August’s 2.7% growth. The expansion was led by Food, Beverages & Tobacco and Electrical & Electronics sub-sectors, while export-oriented industries which make up over 70% of total sales rose 3.8%.

This article was contributed by Temasek Post, a digital news company delivering trusted insights at the intersection of business, technology, and lifestyle, empowering the Southeast Asian and global audience with stories that inform, connect, and inspire.