Malaysia’s PPI drops 3.6 pct in May 2025, mining sector hit hardest

LocalBusiness & Finance
26 Jun 2025 • 2:17 PM MYT
The Sun Daily
The Sun Daily

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KUALA LUMPUR: Malaysia’s Producer Price Index (PPI) declined by 3.6 per cent in May 2025, marking a steeper drop compared to April’s 3.4 per cent decrease, according to the Department of Statistics Malaysia (DOSM).

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin noted that all sectors recorded year-on-year declines except agriculture, forestry, and fishing. The mining sector continued its double-digit slump, falling 15 per cent, driven by sharp drops in crude petroleum (15.7 per cent) and natural gas extraction (13.1 per cent).

“The manufacturing sector fell 3.0 per cent, worsening from April’s 2.6 per cent decline, with petroleum products and electronics dragging performance,“ he said. Electricity and gas supply dipped 1.1 per cent, while water supply edged down 0.2 per cent.

Month-on-month, PPI local production dropped 1.1 per cent, slightly worse than April’s 1.0 per cent decline. Agriculture plunged 5.4 per cent due to lower perennial crop yields, while mining fell 2.3 per cent. Manufacturing slipped 0.5 per cent, pressured by petroleum and food products.

Globally, the US and Japan saw PPI growth (2.6 per cent and 3.2 per cent), while China and Thailand contracted (3.3 per cent and 3.7 per cent).

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