Services, manufacturing made up 82.6 per cent of economy in 2023

Services, manufacturing made up 82.6 per cent of economy in 2023

03 Jul 2024

The services and manufacturing sectors remained as the primary drivers of Malaysia’s economy for 2023, contributing a cumulative 82.6 per cent to the total gross domestic product (GDP).

According to the Statistics Department of Malaysia (DOSM), the services sector which constitutes 59.2 per cent of the national GDP, grew by 5.1 per cent from the previous year.

DOSM said the performance was supported by strong growth in key subsectors such as wholesale & retail trade (5.9 per cent), transport & storage, (13.8 per cent) and food & beverage and accommodation (7.7 per cent).

“Five states experienced growth rates surpassing the national level, specifically Selangor (6.1 per cent), Pahang (6.0 per cent), Pulau Pinang (6.0 per cent), Sarawak (5.4 per cent), and Johor (5.4 per cent),” it said.

The states contributing the most to the services sector were Selangor, Kuala Lumpur, Johor, Pulau Pinang, Sarawak and Perak.

Meanwhile, DOSM said the manufacturing sector contributed 23.4 per cent to the national GDP,showing marginal growth of 0.7 per cent as compared to 8.1 per cent in 2022.

Selangor led the sector’s growth with 2.0 per cent followed by Johor, which grew by 2.8 per cent.

Selangor, Pulau Pinang, Johor and Sarawak posted double-digit contributions to the sector in 2023.

While Negri Sembilan and Melaka were also significant contributors at 5.4 per cent and 4.6 of the sector’s GDP contribution.

As for the agriculture sector, DOSM said the sector constituted the third largest share of the national GDP in 2023, experienced a slight increase of 0.7 per cent.

It said Pahang emerged as the leading performer in this sector, achieving a growth of 2.5 per cent followed by Sarawak with a growth rate of 2.0 per cent, and Melaka with an increase of 6.5 per cent.

Lastly, for the mining & quarrying sector, DOSM said this sector accounted for 6.2 per cent to the national GDP in 2023, lowest among all sectors.

DOSM said the sector showed a modest growth of 0.5 per cent.

“The weak global demand for crude oil, coupled with a series of geopolitical conflicts that caused a drop in world crude oil prices, has negatively impacted the two states that dominate the sector,” it said.

“The two states are Sabah and Sarawak, resulting in negative growth of -5.2 per cent and -1.0 per cent, respectively,” it added.

Source: NST