Manufacturing sales grew at a slower pace in July, but employment edged up

Malaysia's manufacturing sector experienced a modest 9.1% year-on-year growth in sales value to RM177.3 billion in July 2026, with the electrical and electronics sub-sector leading the charge. However, the sector's sales value only increased by 0.2% month-on-month, a slower rate compared to the 9.8% growth seen in June. The E&E products sub-sector alone contributed to a 17.8% YoY increase in sales.

Meanwhile, the food, beverages, and tobacco sub-sector saw a strong 3.9% expansion, up from 2.2% in June. The petroleum, chemical, rubber, and plastic sub-sector also posted growth of 3.6%. Export-oriented industries drove the manufacturing sales value growth, recording a 9.9% increase from a year ago, while domestic industries' growth slowed to 7.2% YoY.

The export-oriented industry contributed 72.2% of the total value in July. The growth was driven by computer, electronic, and optical products, which rose 19%, followed by machinery and equipment at 17.8% YoY. The manufacture of coke and refined petroleum products expanded by 3.3%. On the employment front, the number of manufacturing sector employees rose by 1.1% year-on-year to 2.4 million in July, with the food, beverages, and tobacco sub-sector leading the growth at 2.2%.

Non-metallic mineral products, basic metal, and fabricated metal products sub-sectors also saw an increase of 1.9% YoY, compared to 1.6% in June. The E&E products sub-sector contributed to a 1.3% growth. On a monthly basis, manufacturing employment increased by 0.1%, reversing a 0.2% decline seen in June. Salaries and wages paid in the sector grew by 2.8% year-on-year to RM8.55 billion in July, a slight dip from the 0.5% decline in June.

Sales value per employee rose 7.9% YoY to RM73,188, and average salaries and wages per employee increased by 1.7% to RM3,527. Over the first seven months of 2026, manufacturing employment increased by 1.1% year-on-year to 2.4 million, while salaries and wages paid rose by 2.7% to RM60.1 billion. Sales value per employee also climbed by 6.4% to RM496,792.