Malaysia’s manufacturing sector recorded RM173.1 billion in sales during March 2026, a 5.3% increase from the same month a year earlier, according to the Department of Statistics Malaysia (DOSM). Growth picked up from 3.9% in February, and month-on-month, sales climbed 8.7% from RM159.2 billion in the preceding month. The sector directly employs 2.4 million workers across the country.
Electronics And Electrical Products Drove The Expansion
The electrical and electronics (E&E) sub-sector was the largest contributor to March’s growth, with sales rising 13.3% year-on-year. Food, beverages, and tobacco came in second at 7.8%, followed by non-metallic mineral products, basic metal, and fabricated metal products at 3.7%.
Export-Oriented Industries Outpaced Domestic Growth
Industries selling to global markets account for 71.7% of total manufacturing sales and grew 6.5% year-on-year in March. Month-on-month, this segment surged 10.7%.
Within this group, the manufacture of computers, electronics, and optical products was the standout at 15.2% year-on-year growth. The manufacture of vegetable and animal oils and fats, which covers palm oil processing, rose 10.2%, while machinery and equipment manufacturing grew 2.7%.
Domestic-oriented industries grew at a more moderate 2.5%, compared to 2.7% in February. Food processing products posted 5.0% year-on-year growth within this group, while basic metals and non-metallic mineral products grew 3.2%.
2.4 Million Workers, Average Monthly Wage At RM3,547
The sector employed 2.4 million workers in March 2026, up 1.1% year-on-year. Employment growth was highest in food, beverages, and tobacco at 2.1%, followed by E&E products and non-metallic mineral products, both at 1.4%.
Total wages paid reached RM8.56 billion for the month, up 2.2% year-on-year. The average manufacturing worker took home RM3,547 per month, a 1.1% increase from March 2025.
First Quarter Sales Reached RM501.5 Billion
For Q1 2026, total manufacturing sales reached RM501.5 billion, up 5.5% year-on-year. This is a slight moderation from Q4 2025’s 5.8% growth. Total wages paid over the quarter stood at RM25.9 billion, a 2.3% increase, while sales per employee for the quarter rose 4.4% to RM207,779. DOSM notes that March data remains provisional and may be revised in subsequent publications.
Manufacturing Output Rose Faster Than Worker Pay
The sector’s strong sales performance did not translate equally into wage increases. Sales per employee rose 4.2% in March, while average wages per employee grew just 1.1% over the same period. With Malaysia’s inflation rate at 1.7% in March 2026, if you are a manufacturing worker, your pay rise this year likely did not keep pace with the cost of living.
The sector generated significantly more revenue per worker in March, but that has not yet shown up proportionally in take-home pay.
If you are looking to enter manufacturing or considering a move within the sector, E&E and food processing are the two sub-sectors currently seeing the most consistent headcount growth, at 1.4% and 2.1% respectively. E&E roles generally carry higher wages given the technical requirements, while food processing tends to offer broader entry-level access.
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