29/07/2025

BIZ & FINANCE TUESDAY | JULY 29, 2025

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Producer Price Index declines 4.2% in June

PUTRAJAYA: Malaysia’s Producer Price Index (PPI), which measures price changes at the producer level, went down further by 4.2% in June 2025, after a 3.6% decline in the previous month. Chief Statistician Malaysia Datuk Sri Dr Mohd Uzir Mahidin said: “All sectors registered year-on-year declines in June 2025, with mining and manufacturing sectors emerging as the primary contributors to the overall negative trend of the index. The mining sector declined by 8% (May 2025: -15%), affected by extraction of natural gas (-12%) and extraction of crude petroleum (-6.7%) indices. At the same time, the manufacturing sector went down by 4.3% (May 2025: -3%) contributed by significant downturns in manufacture of coke and refined petroleum products (-17.7%) and manufacture of computer, electronic and optical products (-7.8%) indices. “The agriculture, forestry & fishing sector also recorded a slight decrease of 0.3% (May 2025: 1.8%), with the animal production index declined by 2.9%. “For the utility sector, both electricity and gas supply and water supply posted marginal decreases of 0.2% in June 2025.” On a month-on-month basis, he added the PPI local production recorded a decline of 0.7% in June 2025, following a 1.1% decrease in the previous month. “The manufacturing sector went down by 1.2% (May 2025: -0.5%), due to manufacture of coke & refined petroleum products (-4.2%) and manufacture of food products (-3.0%) indices. Similarly, the agriculture, forestry & fishing sector declined by 1.0% (May 2025:

“Meanwhile, on a quarter-on-quarter basis, the PPI registered a decline of 2.3%, in contrast to a 1.0% increase recorded in the previous quarter. This decrease was primarily driven by contractions in agriculture, forestry and fishing, mining and manufacturing sectors.” On selected Malaysia’s commodity prices, Mohd Uzir said: “According to the World Bank, the average Brent crude oil price in June 2025 stood at US$71.45 per barrel, an increase from US$ 64.21 per barrel in the previous month. The increase in price was primarily attributed to escalating geopolitical tensions, particularly the conflict in the Middle East. “In line, the World Bank has revised its average Brent price forecast for 2025 to US$ 72 per barrel, up from earlier projections. “Meanwhile, Malaysian crude palm oil prices averaged RM 3,969.00 per tonne in June 2025, compared to RM 3,880.50 per tonne in May 2025. The upward trend was driven by robust global demand especially from India and China which helped sustain prices despite ample supply.”

further processing index declined by 5.8%, primarily due to a decrease in non-food materials index (-7%). “The intermediate materials, supplies and components index registered a 4.4% drop, contributed by a sharp decline in processed fuel and lubricants (-12.7%). Meanwhile, the finished goods index contracted by 2.3%, mainly driven by the downturn in capital equipment (-3.2%).” On a month-on-month basis, the crude materials for further processing index recorded an increase of 1.2%, while the finished goods index edged up by 0.5%. In contrast, the intermediate materials, supplies and components index registered a decline of 1.8%. “The PPI local production declined by 3.7% in the second quarter of 2025, as compared to a 0.3% decrease in the first quarter of 2025. The mining sector significantly declined by 13.7%, followed by manufacturing (-3.4%) and electricity & gas supply (-0.6%) sectors. However, agriculture, forestry & fishing and water supply increased by 1.4 % and 0.2%, respectively,” Mohd Uzir said.

o Mining and manufacturing sectors are primary contributors to overall negative trend -5.4%), weighed down by declines in growing of perennial crops (-1.2%) and animal production (-0.8%) indices. “In contrast, the mining sector increased by 4.6%, rebounding from a 2.3% contraction in May 2025. This was mainly driven by the extraction of crude petroleum, which rose by 7.0%. Meanwhile, the water supply index increased marginally by 0.2%, while the electricity and gas supply index decreased by 0.2% in June 2025,” he said. On PPI local production by stage of processing, Mohd Uzir said: “All stages of processing recorded year-on-year declines in June 2025 continuing the downward trend since March 2025. The crude materials for

Malaysia and Nepal forge new economic synergies KUALA LUMPUR: The Malaysia-Nepal Business Council (MNBC) and the Federation of Nepal Cottage and Small Industries, Lalitpur Metropolitan City (FNCSI-LMC), signed a memorandum of understanding (MoU) in Kathmandu early this month, aimed at strengthening bilateral trade ties and revitalising small enterprise ecosystems. Setting the stage for a robust and forward-looking partnership, this collaboration underscores the

Motul appoints East Success Prolube as Sarawak distributor

SARAWAK: Motul, a global leader in high-performance automotive lubricants, has appointed East Success Prolube Sdn Bhd as its authorised distributor in Sarawak. This marks a significant milestone in Motul’s expansion strategy, deepening its commitment to the East Malaysian market by partnering with a local company. With this partnership, East Success Prolube will distribute Motul’s full range of premium engine oils including the iconic 300V, Motul 8100 Power, H-Tech, Power SUV, MS-A Power, Eco Tech, 4100, and Multipower D-Turbo lines. The portfolio also includes transmission fluids, brake fluids, coolants, and a comprehensive suite of automotive maintenance products, all tailored to meet the demands of passenger vehicles operating in Sarawak’s diverse driving environments. Motul Malaysia general manager Ravi Shankar said: “Our partnership with East Success Prolube represents much more than just an expansion of our footprint in Sarawak, it’s the beginning of a shared journey built on a foundation of trust, performance, and mutual respect for the automotive community. “We are excited to partner with a distributor who not only understands the unique needs of the local market but

also shares our passion for excellence in every aspect of automotive care. “This collaboration allows us to ensure that Sarawak’s drivers have access to the same high-performance lubricants that are trusted worldwide, backed by local expertise and unwavering support.” East Success Prolube managing director Victor Ting, meanwhile, said that this partnership is incredibly meaningful to them. “More than just a product, Motul is synonymous with engineering excellence, motorsport legacy, and trust. Bringing that to Sarawak under our care is more than just a business opportunity, it is a commitment to our customers and the local automotive community. “With this partnership, we are not only expanding our product offerings but also delivering world-class lubrication solutions that will empower drivers and service providers alike.” With this partnership, Motul reaffirms its long-term commitment to the Malaysian market, where it continues to see strong demand for high-quality, high-performance lubricants. The Sarawak region represents a critical growth area, with increasing vehicle ownership, longer-distance driving, and heightened awareness of vehicle care and efficiency, all of which Motul is well-positioned to support.

commitment of both nations to promoting the growth of cottage and small industries, particularly in Nepal’s Lalitpur region, while opening new avenues for cross-border trade, investment, and cultural exchange. The signing took place during a working visit by a 20-member delegation from the MNBC, which is based in Kuala Lumpur, led by its president Datuk Pardip Kumar Kukreja, the executive chairman of Malaysia’s Paradise Group. They also met with Nepal’s Prime Minister KP Sharma Oli to explore investment opportunities at his office. The meeting focused on strengthening bilateral trade and identifying potential ventures in sectors such as tourism, IT, agriculture, manpower, and plastic waste processing. Oli assured the delegation that Nepal is undertaking ongoing legal and structural reforms aimed at creating a more investor-friendly environment and welcomed Malaysian participation in the country’s economic growth. As global economies look to build resilience through grassroots entrepreneurship and sustainable value chains, the MoU aims to lay the groundwork for long-term cooperation that leverages each country’s unique strengths. At its core, the agreement aimed at promoting mutual support in developing cottage industries and enhancing market access, not only within the two countries but also globally. The FNCSI-LMC and MNBC envision a

Pardip placing a ceremonial shawl on Oli on behalf of the visiting delegation.

and MNBC will oversee the partnership’s progress. Meeting at least twice a year, the committee will coordinate joint efforts, track progress, and develop annual action plans to maintain momentum and keep objectives on track. The MoU, which is set for a five-year term, reflects a spirit of goodwill and strategic intent. It establishes the framework for more detailed agreements that may involve financial commitments or legal obligations. Both sides have expressed optimism for an evolving and deepening relationship. As the world shifts towards more inclusive and sustainable economic models, this bilateral initiative exemplifies how international collaboration can uplift local industries, empower communities, and foster resilient business ecosystems. Meanwhile, Nepal’s deputy prime minister and finance minister Bishnu Prasad Paudel urged Malaysian investors to invest more in Nepal’s physical infrastructure and tourism sectors. “There is appropriate environment for private sector to invest in Nepal. Nepal’s policies are investment-friendly. The government is ready to support and facilitate them,” he was quoted as saying.

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technology, practices, particularly in artisan craftsmanship, heritage-linked enterprises, and tourism driven economic activities. To achieve these goals, both parties will work closely to organise trade missions, facilitate business-to-business (B2B) networking, and hold investment forums in Malaysia and Nepal. A focus on capacity building is also central to the pact, with plans to conduct workshops and training sessions that enhance the skills and global competitiveness of artisans and entrepreneurs. The partnership will also extend to joint product development, including branding, packaging, and market readiness, ensuring that traditional crafts and small-scale products from Nepal can meet international demand. Trade fairs and exhibitions will serve as vital platforms to showcase the vibrancy and potential of Nepal’s cottage industry to Malaysian investors and consumers, while also opening doors for Malaysian ventures to explore similar opportunities in Nepal. Furthermore, a joint working committee (JWC) comprising representatives from both FNCSI-LMC and best