Official data: Malaysia’s May manufacturing prices down 5.5pc from a year ago

Department of Statistics Malaysia said the overall decrease was due largely to the mining index that dove 52.7 per cent in the same period compared.— Picture by Farhan Najib
Department of Statistics Malaysia said the overall decrease was due largely to the mining index that dove 52.7 per cent in the same period compared.— Picture by Farhan Najib

KUALA LUMPUR, June 30 — Malaysia’s producer price index (PPI) fell 5.5 per cent year-on-year (y-o-y) in May 2020, the third consecutive month that local manufacturers have seen prices for their goods decline.

In a Department of Statistics Malaysia (DOSM) report released today, the agency said the overall decrease was due largely to the mining index that dove 52.7 per cent in the same period compared.

Chief Statistician Datuk Seri Mohd Uzir Mahidin said the index was weighed down by the slump in global commodity prices for crude oil and natural gas.

“In addition, Water supply (-1.1 per cent), Manufacturing (-0.8 per cent) and Electricity & gas supply (-0.2 per cent) were also contributed to the decrease in the index. Conversely, the index of Agriculture, forestry & fishing edged up by 5.5 per cent,” said Mohd Uzir.

On a monthly basis, however, the PPI only declined marginally in May compared to April.

This was due to the 16.6 per cent increase in the mining index, offsetting the fall in four other industries: agriculture, forestry and fishing (-4.5 per cent), manufacturing (-0.8 per cent), electricity and gas supply (-0.3 per cent) and water supply (-0.3 per cent).

The increase is the first positive in the mining index after a down-trend of four consecutive months since January this year.

The PPI by stage of processing in May for crude materials needing further processing as well as intermediate materials, supplies and components also decreased by 26.6 per cent and 0.9 per cent year-on-year, respectively.

However, finished goods only declined marginally, by 0.2 per cent.

“The decrease was attributed by the index for Intermediate materials, supplies & components (-1.1 per cent) and finished goods (-0.5 per cent). Meanwhile, crude materials for further processing rose 3.4 per cent,” said Mohd Uzir.

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