MALAYSIA’s terms of trade rose by 1.2 per cent month-on-month to 119.5 points in March 2025, driven by increased export prices in key sectors such as mineral fuels, machinery, and food, according to the Department of Statistics Malaysia (DOSM).
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the gains were supported by a 2.0 per cent rise in mineral fuels, 1.3 per cent in machinery and transport equipment, and a 1.0 per cent increase in food.
“Meanwhile, Malaysia’s terms of trade edged up by 3.8 per cent year-on-year from 115.2 points in March of the previous year,” he said in a statement on Monday.
Export prices continued to climb, with the export unit value index increasing by 0.2 per cent to 151.8 points. This uptick was largely driven by growth in the indices for food (+1.1 per cent), inedible crude materials (+0.9 per cent), and machinery and transport equipment (+0.8 per cent).
The export volume index also posted a significant rise of 15.9 per cent, led by strong growth in machinery and transport equipment (+28.8 per cent), manufactured goods (+15.2 per cent), and miscellaneous manufactured articles (+7.1 per cent). However, the seasonally adjusted export volume index declined slightly by 1.0 per cent from 162.8 to 161.2 points.
On an annual basis, the export unit value and volume indices were up by 1.3 per cent and 5.4 per cent, respectively.
Conversely, import prices recorded a decline, with the import unit value index falling by 0.9 per cent to 127.0 points, mainly due to decreases in mineral fuels (-2.7 per cent), machinery and transport equipment (-0.5 per cent), and chemicals (-0.4 per cent).
Despite this, import volumes rose by 7.6 per cent compared to the previous month, with notable increases in chemicals (+17.0 per cent), miscellaneous manufactured articles (+10.0 per cent), and machinery and transport equipment (+8.6 per cent). The seasonally adjusted import volume index, however, dropped by 7.3 per cent to 193.4 points.
Year-on-year, the import unit value and volume indices fell by 2.4 per cent and 0.5 per cent, respectively.
PPI Dips Slightly
Meanwhile, the Producer Price Index (PPI) for local production eased by 1.9 per cent in March 2025, reversing a 0.3 per cent gain in February, largely due to persistent weakness in the mining sector.
“The mining sector continued its downtrend with a double-digit decrease of 15.0 per cent in March 2025 compared to a 9.7 per cent fall in February 2025,” Mohd Uzir said.
He attributed the decline to further drops in the indices for natural gas extraction (-16.2 per cent) and crude petroleum extraction (-14.5 per cent).
The manufacturing sector also registered a sharper 1.8 per cent fall, with marked declines in the manufacture of coke and refined petroleum products (-16.2 per cent) and computer, electronic and optical products (-5.1 per cent). The electricity and gas supply sector posted a 0.5 per cent decline.
On a more positive note, the agriculture, forestry, and fishing sector grew by 9.9 per cent year-on-year, supported by a 16.9 per cent rise in the growing of perennial crops. The water supply sector also saw a modest increase of 0.7 per cent.
Month-on-month, the overall PPI for local production declined by 0.6 per cent, led by a 3.8 per cent drop in the mining sector, with reductions in both natural gas (-5.7 per cent) and crude petroleum (-3.0 per cent).
The agriculture, forestry and fishing sector contracted by 0.5 per cent, primarily due to declines in fishing (-2.1 per cent) and perennial crops (-0.4 per cent). The manufacturing sector was down 0.3 per cent, while the water supply sector edged lower by 0.1 per cent. Electricity and gas, however, rose slightly by 0.3 per cent.
In comparison, selected international PPIs showed varied results. The United States recorded a 2.7 per cent increase, Japan saw a 4.2 per cent rise, while China and Thailand experienced declines of 2.5 per cent and 1.6 per cent, respectively. - April 28, 2025
