Malaysia Producer Prices Fall the Least in 5 Months

Producer prices in Malaysia dropped 2.8% year-on-year in August 2025, marking the sixth consecutive month of decline, though easing from a 3.8% drop in July and representing the softest decrease since March. The slowdown was driven by a sharp moderation in mining activity (-3.4% vs -8.7% in July), largely due to a fall in crude petroleum extraction (-5.1%). Manufacturing continued to decline (-4.0%), weighed down by coke and refined petroleum products (-14.9%) and computer, electronic, and optical products (-7.7%). In contrast, electricity and gas supply sustained growth (4.1% vs 4.0%), while water supply rebounded to 3.4%, reversing a 0.1% decline in July. The agriculture, forestry, and fishing sector expanded strongly (7.3% vs 1.1%), supported by perennial crops (11.6%). On a monthly basis, producer prices edged up 0.1%, slowing from a 0.3% gain in July.