KUALA LUMPUR (Sept 28): Malaysia’s Producer Price Index (PPI) local production rose by 10.7% in August 2026, compared to a 9.7% increase in July 2026, said the Department of Statistics Malaysia (DOSM).

In its PPI Local Production report for August 2026, DOSM said the mining sector jumped by 41.2% in August 2026, up from 30.5% in July 2026, driven by the extraction of crude petroleum and natural gas, which rose by 49.8% and 14.7%, respectively.

“The manufacturing sector increased by 8.8%, compared to 8.2% in the preceding month, mainly driven by the manufacture of coke and refined petroleum products (33.5%) and the manufacture of computer, electronic and optical products (12.4%),” it said in a statement today.

The agriculture, forestry and fishing sector also increased by 4.6%, although this moderated from the 7.2% growth recorded in July 2026, with animal production registering an increase of 13.9%.

The utility-related sectors also continutes their upward trend, with water supply and electricity and gas supply increasing by 7.8% and 6.4%, respectively.

On a month-on-month basis, the PPI local production increased by 1.0% in August 2026 (July 2026: 0.7%), driven by the mining sector (+6.7%; July 2026: 1.1%), contributed by the extraction of natural gas (8.9%) and crude petroleum (6.1%).

Meanwhile, the agriculture, forestry and fishing sector rose by 0.8% (July 2026: 0.7%), supported by animal production (1.9%).

The manufacturing sector moderated to 0.4% (July 2026: 0.8%), with increases recorded in the manufacture of coke and refined petroleum products (1.7%) and the manufacture of computer, electronic and optical products (1.3%).

Meanwhile, by stage of processing, all three stages of the PPI local production recorded increases in August 2026.

The crude materials for further processing index rose by 24.8% year-on-year, compared to 24.1% in July 2026, mainly driven by non-food materials (28.5%).

On a month-on-month basis, all three stages of processing also recorded increases, with the crude materials for further processing index rising by 2.3%, followed by the intermediate materials, supplies and components index (0.9%).

The finished goods index also registered a marginal increase of 0.1%.

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