PUTRAJAYA: Malaysia’s Producer Price Index (PPI), which measures price changes at the producer level, decreased by 0.8% in September 2025, easing from a 2.8% decline in the previous month.
Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said, “The manufacturing sector contracted by 2.1% in September 2025 (August 2025: -4%), weighing down the overall index. The decline was mainly attributed to manufacture of coke & refined petroleum products (-8.9%) and manufacture of computer, electronic & optical products (-4.6%) indices. On the other hand, all other sectors recorded increases during the month.”
The agriculture, forestry & fishing sector grew by 7.8% (August 2025: 7.3%), driven by the growing of perennial crops index, which rose 11.7%. Meanwhile, the mining sector increased by 1.1%, rebounding from a 3.4% decline in the previous month, supported by the extraction of natural gas index (8.9%).
The utilities sector also recorded an increase, with the electricity & gas supply index up 4.6% and the water supply index rising 9.1%.
On a month-on-month basis, Mohd Uzir said the PPI local production rose by 0.5% in September 2025, following a 0.1% increase in the previous month. The agriculture, forestry & fishing sector increased by 2.1% (August 2025: 3.3%) due to animal production (2.6%) and growing of perennial crops (2.2%).
The mining sector also increased by 1.1% (August 2025: -1.5%), supported by the extraction of natural gas index (11.1%). Similarly, the manufacturing sector recorded a 0.3% increase (August 2025: -0.2%), attributed to manufacture of coke & refined petroleum products (1.8%) and manufacture of food products (0.9%) indices.
Meanwhile, water supply and electricity & gas supply sectors increased by 4.8% and 0.1%, respectively.
“The intermediate materials, supplies & components index declined by 1.2% (August 2025: -3.1%), mainly due to the processed fuel & lubricants (-3.9%). Similarly, the finished goods index fell 1.8% (August 2025: -3.4%), due to a downturn in capital equipment (-2.8%). In contrast, the crude materials for further processing index increased by 2.4% (August 2025: -0.8%) supported by non-food materials (2.3%),” said Mohd Uzir.
On a month-on-month basis, the intermediate materials, supplies & components index increased by 0.8%, while the crude materials for further processing index rose by 0.6%. Meanwhile, the finished goods index edged down by 0.1%.
“The PPI local production declined by 2.4% in the third quarter of 2025, as compared to a 3.7% decrease in the second quarter of 2025. The decline was attributed to mining (-3.8%) and manufacturing (-3.4%) sectors. However, agriculture, forestry & fishing increased by 5.4%, while both electricity and gas and water supply rose by 4.2%,” said Mohd Uzir.
Meanwhile, on a quarter-on-quarter basis, the PPI registered a decrease of 0.3%, as compared to a 2.3% decline in the previous quarter. This decrease was primarily due to the contraction in the manufacturing sector (-1%).
