KUALA LUMPUR: Malaysia’s producer price index (PPI) fell 3.4% year-on-year in February 2026, extending the 2.9% decline recorded in January, reflecting continued weakness across key sectors.
The Statistics Department (DOSM), in a statement, said the contraction was mainly driven by declines in the agriculture, mining and manufacturing sectors.
The agriculture, forestry and fishing sector shrank 8.7% (January: -8.3%), weighed down by a 15.1% drop in the growing of perennial crops index.
The mining sector also remained in negative territory, declining 8.5% (January: -11.7%), amid lower output in natural gas (-14.2%) and crude petroleum (-6.4%).
Manufacturing contracted 2.7%, weighed by declines in refined petroleum products, down 10.6%, and food products, down 5.2%.
In contrast, the water supply index rose 11.9%, while electricity and gas supply increased 4.7%.
On a month-on-month basis, PPI local production slipped 0.5% in February, reversing a 0.1% increase in January, mainly due to a 0.8% fall in manufacturing.
DOSM said water supply and electricity and gas edged down 0.3% and 0.1%, respectively, while mining rose 0.4% and the agriculture, forestry & fishing sector increased 1.0%.
Across processing stages, all indices remained in contraction year-on-year. Crude materials declined 7.0%, intermediate materials fell 3.1%, and finished goods slipped 1.1%.
On a month-on-month basis, crude materials rose 0.7%, while intermediate materials and finished goods declined 1.0% and 0.3%, respectively.
