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Services Producer Price Index Malaysia Second Quarter of 2018

Release Date : Monday 13, August 2018 1200




The Services Producer Price Index (SPPI) is designed to measure the average changes in the prices of services charged by the local services industry in Malaysia and used as a deflator in the compilation of the Service Index and the Gross Domestic Product.

SPPI for the second quarter of 2018 registered an increase of 0.1 per cent as compared to the previous quarter. The main sub-sectors that registered increases were Accommodation and Food & Beverage Service Activities (+0.5%), Real Estate Activities (+0.3%), Transportation and Health 0.1 per cent respectively. Meanwhile Arts, Entertainment & Recreation, Professional and Information & Communication remained unchange.

The year-on-year comparison for SPPI recorded an increase of 1.0 per cent. The positive growth was contributed by the following sub-sectors:  Accommodation and Food & Beverage Service Activities (+2.9%), Real Estate Activities (+1.3%), Education (+1.1%), Arts, Entertainment & Recreation (+0.8%), Transportation and  Professional  0.7 per cent respectively.



The SPPI for Transportation[1] for second quarter 2018 increased 0.1 per cent as compared to the previous quarter. The increase was driven by the index of Passenger Air Transport (+0.4%). Meanwhile, Other Land Transport, Freight Air Transport, Postal Activities and Courier Activities remained unchange. 

The year-on-year comparison showed that the SPPI for Transportation registered an increase of 0.7 per cent contributed by Passenger Air Transport (+2.1%) and Sea & Coastal Water Transport  (+0.1%).  



As compared to the previous quarter, the SPPI for Accommodation & Food and Beverage Services Activities[2] rose to 0.5 per cent in second quarter 2018. The increase was contributed by the Restaurants and Mobile Food Service Activities and Beverage Serving Activities at  0.5 per cent respectively.  Meanwhile, the Short-term Accommodation Activities declined by 0.1 per cent. 

The increase of 2.9 per cent for year-on-year comparison was driven by Restaurants and Mobile Food Service Activities (+3.4%), Beverage Serving Activities (+2.9%), Event Catering and other Food Service Activities (+0.6%) while Short-term Accommodation Activities  declined 0.4 per cent. 



In second quarter 2018, the SPPI for Information & Communication[3] remained unchange as previous quarter.  Year-on-year, SPPI for Information & Communication recorded an increase of 0.4 per cent due to the increase in the index of Computer Programming, Consultancy & Related Activities (+0.8%). Meanwhile, the following indices declined:  Wireless Telecommunications Activities (-0.1%), Wired Telecommunications Activities (-0.2%) and Data Processing, Hosting and Related Activities; Web Portals (-0.4%).


The SPPI for Real Estate Activities[4] grew 0.3 per cent in the second quarter 2018 as compared to the first quarter, 2018 and increased 1.3 per cent  year-on-year. 



The SPPI for Professional[5] was unchange in the second quarter 2018 as compared to the previous quarter.   Year-on-year SPPI for professional grew by 0.7 per cent driven by Legal Activities (+1.1%), Architectural & Engineering Activities & Related Technical Consultancy (+0.7%), and Accounting, Bookkeeping & Auditing Activities; Tax Consultancy (+0.5%). 



SPPI for Education[6] decreased 0.1 per cent in the second quarter of 2018. The decrease was contributed by Higher Education indices (-0.2%).  Meanwhile, year-on-year index increased 1.1 per cent supported by Secondary Education (+5.0%), followed by Pre-Primary & Primary Education and Other Education which increased 1.3 per cent respectively and Higher Education (+0.4%). 



The SPPI for Health[7] recorded an increase of 0.1 per cent for second quarter of 2018 as compared to the first quarter of 2018.  This contributed by the increase of Medical & Dental Practice Activities (+0.2%). 

Meanwhile, year-on-year comparison showed the index inclined 0.4 per cent induced by Other Human Health Activities (+1.1%), Medical & Dental Practice Activities (+0.9%), and Hospital Activities (+0.6%).  



In the second quarter 2018, the SPPI for Arts, Entertainment and Recreation[8] remained unchange. Year-on-year, the growth of 0.8 per cent in Arts, Entertainment and Recreation was contributed by Gambling and Betting Activities (+1.7%) and Other Amusement & Recreation Activities (+0.9%).



[1] The industries covered are Freight Transport by Road; Transport of freight overseas and coastal waters, whether scheduled or not; Transport of passengers by air over regular routes and on regular schedules; Freight transport by air over regular routes and on regular schedules; Postal Activities; and Courier Activities other than National Post Activities.

[2] The industries covered are Hotels and Resort Hotels; Restaurants and Restaurant cum Night Clubs; Cafeteria/Canteens; Fast-food Restaurants; Food Stalls/Hawkers; Event catering; Event/Food Caterers; Pubs, Bars, Discotheques, Coffee-houses, Cocktail Lounges and Karaoke; and Coffee Shops.

[3] The industries covered are Wired Telecommunication Services; Internet Access Providers by the Operator of the Wired Infrastructure; Wireless Telecommunication Services; Internet Access Providers by the Operator of the Wireless Infrastructure; Computer Consultancy; Data Processing Activities; and Web Portals.

[4] The industry covered is Activities of Real Estate Agents and Brokers for Buying, Selling and Renting of Real Estate.

[5] The industries covered are Legal Activities; Accounting, Bookkeeping and Auditing Activities; Tax Consultancy; and Engineering Services.

[6] The industries covered are Pre-primary Education (Private); Primary Education (Private); General School Secondary Education (Private); College and University Education (Private); Music and Dancing School; and Tuition Centre.

[7] The industries covered are Hospital Activities; General Medical Services; Specialized Medical Services; Dental Services; Dialysis Centres; and Medical Laboratories.

[8] The industries covered are Gambling and Betting Activities; Equestrian Clubs; Golf Courses; Bowling Centre; Fitness Centres; Activities of Amusement Parks and Theme Parks; and Cyber Café/Internet Centre.


Released By:

 DrUzir_Mahidin    Dr_Uzir

13 August 2018


Contact person:

Ho Mei Kei
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
Email : mkho[at]dosm.gov.my

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