How is the performance of domestic-oriented industries evolving amidst overall growth?

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Domestic-Oriented Industries Show Modest Growth Amidst Broader Economic Expansion

Domestic-oriented industries in Malaysia experienced a modest year-on-year growth of two per cent in May 2026. This expansion was primarily supported by steady performance in specific manufacturing sub-sectors, notably the manufacture of fabricated metal products, except machinery and equipment, which saw a 4.5 per cent increase, and basic metals manufacturing, which grew by 7.3 per cent. However, this segment of the industrial sector experienced a significant month-on-month decline, falling by 4.6 per cent in May, a reversal from the positive 5.3 per cent growth recorded in April 2026.
Contribution to Overall Industrial Production

While the overall Industrial Production Index (IPI) for Malaysia climbed by 8.4 per cent year-on-year in May 2026, driven largely by export-oriented industries and the mining sector, the domestic-oriented segment contributed at a more subdued pace. The manufacturing sector as a whole expanded by 6.6 per cent, with export-oriented industries showing a more robust 8.8 per cent growth. This highlights a divergence in performance between sectors geared towards international markets and those primarily serving the domestic economy.
Month-on-Month Performance Shift

The domestic-oriented industries faced a notable contraction on a month-on-month basis, decreasing by 4.6 per cent in May 2026. This stands in contrast to the positive 5.3 per cent growth observed in the preceding month of April 2026. This shift indicates a softening of domestic demand or production momentum within this segment during May, despite the year-on-year positive figures.
Key Sub-Sector Performance

Within the domestic-oriented industries, the manufacture of fabricated metal products, excluding machinery and equipment, demonstrated resilience with a 4.5 per cent growth. Similarly, basic metals manufacturing recorded a strong 7.3 per cent increase. These sub-sectors provided a stable base for the overall modest year-on-year growth, even as other components within domestic-oriented industries may have experienced a downturn leading to the month-on-month fall.

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How is the performance of domestic-oriented industries evolving amidst overall growth?

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