KUALA LUMPUR, March 27 — Malaysia’s Producer Price Index (PPI) declined by 3.4 per cent year-on-year (y-o-y) in February 2026, after a 2.9 per cent contraction in the previous month, according to the Statistics Department (DOSM).
Chief statistician Datuk Seri Mohd Uzir Mahidin said the decline was mainly driven by continued weaknesses across key sectors, particularly agriculture, mining, and manufacturing.
“The agriculture, forestry and fishing sector shrank by 8.7 per cent (January 2026: -8.3 per cent), weighed down by a 15.1 per cent drop in the growing of perennial crops index.
“The mining sector also contracted by 8.5 per cent y-o-y (January 2026: -11.7 per cent), due to declines in the extraction of natural gas (-14.2 per cent) and crude petroleum (-6.4 per cent) indices,” he said in a statement today.
The manufacturing sector also decreased by 2.7 per cent y-o-y (January 2026: -1.7 per cent), mainly attributed to declines in the manufacture of coke and refined petroleum products (-10.6 per cent) and food products (-5.2 per cent) indices.
In contrast, the water supply index rose by 11.9 per cent, while the electricity and gas supply index increased by 4.7 per cent.
On a month-on-month (m-o-m) basis, Uzir said the PPI edged down by 0.5 per cent in February 2026, reversing a 0.1 per cent increase in January 2026.
“The manufacturing sector fell by 0.8 per cent (January 2026: -0.2 per cent), due to declines in coke and refined petroleum products (-4.2 per cent) and food products (-0.7 per cent) indices.
“The water supply index decreased by 0.3 per cent, while electricity and gas supply slipped by 0.1 per cent,” he said.
However, the mining sector recorded a slower 0.4 per cent rise (January 2026: 1.9 per cent), supported by crude petroleum (2.7 per cent) index. The agriculture, forestry and fishing sector rose by 1.0 per cent (January 2026: 0.3 per cent).
Uzir said all stages of processing continued to record negative y-o-y changes in February 2026.
The crude materials for further processing index declined by seven per cent (January 2026: -7.5 per cent), due to a drop in non-food materials (-9.5 per cent).
The intermediate materials, supplies and components index contracted by 3.1 per cent (January 2026: -2.3 per cent), weighed down by processed fuel and lubricants (-9.3 per cent).
The finished goods index decreased by 1.1 per cent (January 2026: -0.6 per cent), due to a decline in capital equipment (-2.3 per cent).
On a m-o-m basis, crude materials for further processing index increased by 0.7 per cent, while intermediate materials, supplies and components, and the finished goods indices fell by one per cent and 0.3 per cent, respectively.
A comparison with selected economies showed mixed trends in February 2026.
Japan’s PPI rose by 2.0 per cent y-o-y, easing from 2.3 per cent previously. China remained in deflation with its PPI declining by 0.9 per cent, marking the 41st consecutive month of contraction.
Thailand’s PPI also fell by 0.5 per cent, extending its decline for the 12th straight month, a similar trend in Malaysia.
On commodity prices, Uzir said the World Bank reported that the average Brent crude oil price was US$71.11 per barrel in February 2026, up from US$66.77 a month ago, due to market conditions and geopolitical risks. However, on a y-o-y basis, prices were slightly lower than US$75.16 per barrel in February 2025.
Meanwhile, Malaysia’s average crude palm oil (CPO) price rose to RM4,077.50 per tonne in February 2026 from RM4,018.50 in January 2026, based on data from the Malaysian Palm Oil Board.
The increase marked the first monthly rise since November 2025, DOSM said.
