Kuala Lumpur, Feb. 12 -- With stable external demand, continued growth in the domestic consumer market and timely government support policies, Malaysia's manufacturing sector is expected to maintain its growth momentum into 2026, economists have said.

This optimistic outlook is underpinned by the strong performance of the Industrial Production Index (IPI), which measures output from the manufacturing, electricity and mining sectors toward the end of 2025.

Data from the Department of Statistics Malaysia (DOSM) showed that the IPI in December 2025 rose by 4.8% year on year.

RHB Investment Bank maintained an optimistic view on the sector's prospects, forecasting IPI growth of 4.1% in 2026. Despite concerns over a global economic slowdown, h...