Producer prices in Malaysia dropped by 3.6% year-on-year in May 2025, slipping further from a 3.4% fall in the previous month. This marked the third consecutive month of decline and the sharpest since June 2023, primarily driven by a 15% drop (vs -17.8% in April) in the mining sector, with significant reductions in crude petroleum (-15.7%) and natural gas (-13.1%).
The manufacturing sector also declined by 3% (vs -2.6%), weighed down by sharp decreases in the manufacture of coke & refined petroleum products (-15.4%) and computer, electronic & optical products (-6.9%). Similarly, electricity & gas supply contracted by 1.1% (vs -0.6%), while the water supply sector fell marginally by 0.2% (vs 0.9%). In contrast, the agriculture, forestry & fishing industry continued to increase by 1.8% (vs 2.6%), largely supported by the growing perennial crops (4.5%). On a monthly basis, producer prices went down by 1.1% in May, following a 1% loss in the preceding period.
