Overview

Malaysia’s Producer Price Index (PPI) declined by 4.2 per cent in June 2025 contributed by all sectors

• Malaysia’s Producer Price Index went down further by 4.2 per cent in June 2025, after a 3.6 per cent decline in the previous month.

• All sectors registered year-on-year declines in June 2025, with Mining and Manufacturing sectors emerging as the primary contributors to the overall negative trend of the index. The Mining sector declined by 8.0 per cent (May 2025: -15.0%), affected by the Extraction of natural gas (-12.0%) index. At the same time, the Manufacturing sector went down by 4.3 per cent (May 2025: -3.0%) contributed by Manufacture of coke and refined petroleum products (-17.7%) and Manufacture of computer, electronic and optical products (-7.8%) indices. The Agriculture, forestry & fishing sector also recorded a slight decrease of 0.3 per cent (May 2025: 1.8%) due to the Animal production index (-2.9%). For the utility sector, both Electricity and gas supply and Water supply posted marginal decreases of 0.2 per cent in June 2025.

• On a month-on-month basis, the PPI Local Production recorded a decline of 0.7 per cent in June 2025, as compared to 1.1 per cent decrease in the previous month. The Manufacturing sector went down by 1.2 per cent (May 2025: -0.5%), due to Manufacture of coke & refined petroleum products (-4.2%) index. Similarly, the Agriculture, forestry & fishing sector declined by 1.0 per cent (May 2025: -5.4%), weighed down by the decline in the Growing of perennial crops (-1.2%) index. In contrast, the Mining sector increased by 4.6 per cent (May 2025: -2.3%) mainly driven by the Extraction of crude petroleum (7.0%). Meanwhile, the Water supply index increased marginally by 0.2 per cent, while the Electricity and gas supply index declined by 0.2 per cent in June 2025.

• All stages of processing recorded year-on-year declines in June 2025. The Crude materials for further processing index declined by 5.8 per cent, primarily due to a decrease in the Non-food materials index (-7.0%). The Intermediate materials, supplies and components index registered a 4.4 per cent drop, contributed by a sharp decline in Processed fuel and lubricants (-12.7%). Meanwhile, the Finished goods index contracted by 2.3 per cent, mainly driven by the downturn in Capital equipment (-3.2%).

• On a month-on-month basis, the Crude materials for further processing index recorded an increase of 1.2 per cent, while the Finished goods index edged up by 0.5 per cent. In contrast, the Intermediate materials, supplies and components index registered a decline of 1.8 per cent.

• The PPI Local Production declined by 3.7 per cent in the second quarter of 2025, as compared to a 0.3 per cent decrease in the first quarter of 2025. The Mining sector significantly declined by 13.7 per cent, followed by Manufacturing (-3.4%) and Electricity & gas supply (-0.6%) sectors. However, Agriculture, forestry & fishing and Water supply increased by 1.4 per cent and 0.2 per cent, respectively. Meanwhile, on a quarter-on-quarter basis, the PPI registered a decline of 2.3 per cent, in contrast to a 1.0 per cent increase recorded in the previous quarter. This decrease was primarily driven by contractions in Agriculture, forestry and fishing, Mining and Manufacturing sectors.

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