In February, export and import prices in Malaysia rose.

In February 2024, Malaysia experienced a 0.1% increase in export prices, rising to 147.3 points from 147.2 points in the preceding month, while import prices surged by 1.1% to 129.9 points from 128.5 points.

However, despite the price increases, the terms of trade declined by 1% month-on-month to 113.4 points in February 2024.

Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin noted, "The export unit value index rose by 0.1% in February 2024 compared to the previous month, primarily driven by increases in the index of chemicals (+1.0%), miscellaneous manufactured articles (+0.7%), and machinery & transport equipment (+0.7%). However, the export volume index decreased by 9.1%, in line with declines in the index of animal & vegetable oils & fats (-21.9%), mineral fuels (-9.8%), and machinery & transport equipment (-9.2%).”

He further stated that the seasonally adjusted export volume index declined by 4.1% from 163.5 points to 156.8 points.

On an annual basis, the unit value index increased by 4.3%, while the volume index decreased by 5%.

Regarding imports, the unit value index rose by 1.1% in February 2024, driven by increases in the index of mineral fuels (+2%), machinery & transport equipment (+1.7%), and miscellaneous manufactured articles (+0.3%). However, the import volume index decreased by 11.4%, attributed to declines in the index of food (-26.7%), manufactured goods (-19.3%), and machinery & transport equipment (-11.8%).

The seasonally adjusted import volume index also decreased by 6.5% from 208.0 points to 194.4 points. Year-on-year, the import unit value index and volume index increased by 0.9% and 7.4%, respectively.

Additionally, Malaysia’s terms of trade decreased by 1% month-on-month to 113.4 points in February 2024, driven by decreases in the index of mineral fuels (-5.1%), machinery & transport equipment (-1%), and animal & vegetable oils & fats (-0.8%).

However, Malaysia’s terms of trade saw a 3.4% year-on-year growth from 109.7 points in February of the previous year.

Meanwhile, Malaysia’s Producer Price Index, reflecting price changes of goods at the producer level, increased by 0.3% in February 2024, compared to a negative 0.6% in January 2024.

Mohd Uzir highlighted that the agriculture, forestry & fishing sector saw a 6.0% incline (January 2024: 3.2%), driven by growing indices of perennial crops (8.1%), fishing (7.5%), and animal production (4.3%). The mining sector also recorded an increase of 5.3% (January 2024: -1.3%), with the extraction of crude petroleum index posting a 7.9% increase.

Moreover, the water supply index increased by 3.6% in February 2024 (January 2024: 0.6%) due to water tariff increases across the country starting on Feb 1, 2024. The electricity & gas supply sector also saw a slight increase of 0.1% in this month (January 2024: -0.8%). However, the manufacturing sector continued to decline by -0.7% (January 2024: -0.9%), attributed to drops in the manufacture of coke & refined petroleum products (-12.6%) and manufacture of food products (-3.3%).