SELANGOR RECORDS 25.9 PCT CONTRIBUTION TO 2023 NATIONAL GDP -- DOSM

KUALA LUMPUR, July 2 (Bernama) -- Selangor led in economic growth last year, contributing 25.9 per cent to the country's gross domestic product (GDP), the Statistics Department of Malaysia (DOSM) said.

In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said this was followed by the Federal Territory of Kuala Lumpur (15.9 per cent), Johor (9.5 per cent), Sarawak (9.1 per cent), Penang (7.4 per cent) and Sabah (5.3 per cent).

"These six states contributed 73 per cent to the national economy in 2023 versus 72.9 per cent in 2022.

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"The Malaysian economy grew by a moderate 3.6 per cent in 2023; all states recorded encouraging positive growth," he said during an online presentation and question and answer session "GDP by state, 2023" today.

He said four states surpassed the national growth rate; Selangor grew 5.4 per cent, Pahang 5.2 per cent, Johor 4.1 per cent and the Federal Territory of Kuala Lumpur 3.7 per cent.

Mohd Uzir said the GDP per capita in 2023 was RM54,612.

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“Based on January-April 2024’s leading index, Malaysia's 2024 outlook showed continuous growth in the near term with all components projected to rise, except for real semiconductor imports.

Other indicators such as consumer confidence, industrial production, and export flows have demonstrated resilience and growth potential. These factors are expected to contribute to a stable trajectory for the Malaysian economy in the coming year,” Mohd Uzir said.

He said the continued growth was evident in 2024’s first quarter (1Q 2024) GDP performance, which recorded a 4.2 per cent expansion versus the previous quarter’s 2.9 per cent.

 The favourable environment also supported stable growth in the national labour market with 1Q 2024 unemployment rate steady at 3.3 per cent, consistent with the previous quarter.

“However, global economic uncertainties and commodity price instability continue to be significant factors in Malaysia’s economic outlook,” Mohd Uzir said.

On state economic growth, he highlighted salient growth features of Selangor, Pahang, Johor and the Federal Territory of Kuala Lumpur with services and manufacturing sectors driving Selangor, Pahang and Johor’s performances.

"Selangor and Johor recorded 6.1 per cent and 5.4 per cent expansion, respectively, propelled by utilities, transport and storage, and information and communication subsectors while Pahang’s services sector grew by 6 per cent, driven by wholesale and retail trade, food and beverages, and accommodation.

Mohd Uzir said the two per cent expansion in Selangor's manufacturing sector was due to the growth in the transport equipment sub-sector, other manufacturing and repair (6.2 per cent), vegetable and animal oils and fats and food processing (10.3 per cent).

Johor's manufacturing rose by 2.8 per cent driven by growth in electrical, electronics and optical products (2.9 per cent). Pahang saw a 6.7 per cent growth in petroleum, chemical, rubber and plastic products, contributing a 2.1 per cent rise to the state's manufacturing sector.

Meanwhile, the Federal Territory of Kuala Lumpur's economic growth was driven by the services sector which grew 4.9 per cent, supported by wholesale and retail trade, food and beverages and accommodation.

"Growth in the services sector, especially in the wholesale and retail trade, food and beverages and accommodation sectors and utilities, transport and storage and information and communication, compensated for manufacturing decline in several states.

"The decline resulted from lower production of electrical, electronics, and optical products due to weak global demand,” Mohd Uzir said.

"Penang, the country's main producer of electrical and electronic products, recorded a 0.5 per cent fall in its manufacturing sector. But the six per cent growth in its services sector offset this fall, supporting Penang's 3.3 per cent growth," he said.

Mohd Uzir said the agriculture sector, constituting the third largest share of the national GDP, saw a 0.7 per cent rise versus 2022’s 1.3 per cent, with Pahang at the lead, growing 2.5 per cent (2022: 6.8 per cent),  followed by Sarawak’s two per cent growth (2022: 1.8 per cent) and Melaka’s 6.5 per cent rise (2022: 0.6 per cent)," DOSM said.

-- BERNAMA