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Malaysia’s Producer Price Index declines by 3.6 per cent in May 2025
All other sectors recorded year-on-year declines in
May 2025 except the Agriculture, forestry & fishing sector. The Mining
sector continued to register a double-digit decline, down by 15.0 per cent
(April 2025: -17.8%) due to indices of Extraction of crude petroleum (-15.7%)
and Extraction of natural gas (-13.1%). The Manufacturing sector declined by
3.0 per cent (April 2025: -2.6%) dragged down by Manufacture of coke &
refined petroleum products (-15.4%) and Manufacture of computer, electronic
& optical products (-6.9%). Similarly, the Electricity & gas supply
sector decreased by 1.1 per cent, while the Water supply sector declined
marginally by 0.2 per cent. In contrast, the Agriculture, forestry &
fishing sector remained on an upward trend, albeit at a slower pace, increasing
by 1.8 per cent (April 2025: 2.6%). This was mainly contributed by the Growing
of perennial crops index (4.5%).
On a month-on-month basis, the PPI Local Production went
down by 1.1 per cent in May 2025, as compared to a 1.0 per cent decline in
April 2025. The Agriculture, forestry & fishing sector declined by 5.4 per
cent, due to drop in the Growing of perennial crops index (-9.1%). The Mining
sector also decreased by 2.3 per cent, due to Extraction of crude petroleum
index (-2.1%). Meanwhile, the Manufacturing sector decreased by 0.5 per cent,
weighed down by declines in Manufacture of coke & refined petroleum
products (-2.1%) and Manufacture of food products (-1.1%). However, the utility
sector recorded modest increase. The Electricity & gas supply index rose by
0.6 per cent, while the Water supply index edged up by 0.2 per cent.
Similar
to the previous month, all stage of processing recorded year-on-year declines
in May 2025. The Crude materials for further processing index decreased by 8.7
per cent, due to a significant decline in the Non-food materials (-10.4%). The
Intermediate materials, supplies & components index down by 2.4 per cent,
attributed to the Processed fuel & lubricants (-9.9%). Meanwhile, the
Finished goods index recorded a decrease of 2.4 per cent due to the Capital
equipment (-3.2%).
On a month-on-month basis, the Crude materials for
further processing index decreased by 3.7 per cent. Concurrently, the
Intermediate materials, supplies & components and Finished goods indices
both edged down by 0.6 per cent and 0.3 per cent, respectively.
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