In November 2023, Malaysia experienced a 1.5% decrease in producer prices, following a slight dip in October. This decline persisted for two consecutive months, primarily driven by reduced manufacturing costs.
The cost of producing goods dropped by 1.4% compared to the previous year, marking a seven-month trend of declining prices. Additionally, the costs of materials used in production showed slower growth.
Producer Prices
Looking forward, it appears that prices may continue to stay low until mid-2024, attributed to stable conditions in the country, consistent interest rates, and a return to normal global prices.
However, there are potential risks such as a weakening national currency and rising fuel prices due to changes in subsidies. Moreover, challenges in crucial waterways could exert additional pressure on the global supply chain.
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