Malaysia's industrial production index (IPI) rose by 4.1% on year in August, after rising by 5.3 on year in July, reported the Department of Statistics Malaysia (DOSM) on Friday.

On month, the IPI in August rose 1.7% from July, added the DOSM.

Malaysia's output of manufactured products gained 6.5% on year in August, while electricity output rose by 4.1% in the same time frame.

In contrast, output in Malaysia's mining sector declined by 6.4% on year in August, said the DOSM.

The growth in Malaysia's industrial sector was largely driven by the nation's export industries, explained the DOSM.

The manufacture of vegetable and animal oils and fats rose by 22.6% on year in August, followed by an 11.1% rise in the output of rubber products. The production of computers, electronics and optical products rose by 8.7% on year in August, added the DOSM.

In addition, Malaysia's output of fabricated metal products, except machinery and equipment, rose by 10.3% on year in August, while that of motor vehicles, trailers and semi-trailers gained by 7.7%.

In the first eight months of the year, Malaysia's IPI rose 4.1% on year, over the same period of 2023. The manufacturing index rose by 4.4% on year, the electricity output index by 6.7% and the mining index by 1.8%, said the DOSM.

In early October S&P Global reported that the seasonally adjusted Malaysia manufacturing purchasing managers index (PMI) dipped to 49.5 in September from 49.7 in August, slipping further below the 50-marker that separates growth from contraction.