The index measures factory output from the manufacturing, mining and electricity generation sectors.
Output in August was marginally higher than the 0.1% annual growth forecast by analysts surveyed by Reuters, but notably lower than the 1.2% rise in July.
August’s increase in the index was driven by growth in the manufacturing sector, which rose 2.4% year-on-year, the Statistics Department said in a statement.
Mining and electricity output were down 6.7% and 1.2%, respectively, data from the department showed.
Malaysia’s exports fell 2.9% in August, on weak demand for its manufacturing, agriculture and mining goods.
(Reporting by Joseph Sipalan; Editing by Himani Sarkar)