FX.co ★ Malaysia Producer Prices Fall the Most in 2 Years

In June 2025, Malaysia's producer prices experienced a year-on-year contraction of 4.2%, deepening from the 3.6% decline observed in May. This represented the fourth consecutive month of decrease and the steepest drop since June 2023. The downturn was led by an 8.0% decrease in the mining sector, which, although less severe than the 15.0% drop in May, saw significant reductions in natural gas and crude petroleum prices, declining by 12.0% and 6.7% respectively. The manufacturing sector also experienced a contraction, shrinking by 4.3%, compared to the previous month's 3.0% decline. This was largely due to significant downturns in the manufacture of coke and refined petroleum products, which plummeted by 17.7%, and in computer, electronic, and optical products, which fell by 7.8%. Similarly, the electricity and gas supply, along with the water supply sectors, each witnessed a minor contraction of 0.2%. In addition, the agriculture, forestry, and fishing sector saw a 0.3% decrease, reversing from a 1.8% increase previously, largely attributed to a 2.9% downturn in animal production. On a month-to-month analysis, producer prices declined by 0.7% in June, following a 1.1% reduction in the preceding month.