Kuala lumpur: The manufacturing sector in Malaysia reported a 9.8 per cent year-on-year increase in sales value, reaching RM177 billion in June 2026. This rise surpasses the 8.9 per cent increase seen in May 2026, which recorded sales of RM172.7 billion.

According to BERNAMA News Agency, the Department of Statistics Malaysia (DOSM) attributed the growth primarily to the electrical and electronics (EandE) products sub-sector, which experienced a significant 18.7 per cent growth. The petroleum, chemical, rubber, and plastic products sub-sector also contributed, showing a 4.8 per cent increase, alongside the food, beverages, and tobacco sub-sector, which rebounded to a 2.2 per cent growth after a decline in the previous month.

The DOSM further highlighted that export-oriented industries, comprising 73.0 per cent of the total sector's sales, saw a 10.6 per cent year-on-year increase in June 2026. This was largely driven by the manufacture of computer, electronics, and optical products, which grew by 20.7 per cent. Concurrently, domestic-oriented industries expanded by 7.7 per cent year-on-year, following minimal growth in May 2026.

The domestic-oriented industry's performance was bolstered by the manufacture of motor vehicles, trailers, and semi-trailers, which achieved a 14.0 per cent growth. Processed food products also showed a recovery, increasing by 7.0 per cent after a previous decline.

The number of employees in the manufacturing sector rose by 1.2 per cent year-on-year to 2.4 million in June 2026, with growth seen in the food, beverages, and tobacco (2.1 per cent) and EandE products sub-sectors (1.6 per cent). Salaries and wages paid increased by 3.1 per cent, totaling RM8.59 billion for June 2026.

In the second quarter of 2026, the manufacturing sector's sales value grew by 9.3 per cent to RM524.8 billion, compared to a 5.5 per cent increase in the first quarter. Salaries and wages for the quarter also grew by 3.1 per cent, reaching RM25.7 billion, while sales value per employee surged by 8.0 per cent to RM216,777.

For the first half of 2026, cumulative sales for the sector stood at RM1.03 trillion, marking a 7.4 per cent year-on-year increase. Salaries and wages paid rose by 2.7 per cent to RM51.6 billion, and sales value per employee increased by 6.1 per cent to RM423,913.