In line with the slower global economic performance in 2023, Malaysia’s economy grew moderately by 3.6 per cent as compared to the robust growth of 8.9 per cent in 2022, with the Gross Domestic Product amounting to RM1.6 trillion. The Deparment of Statistics broke down the GDP numbers by state and sectors, with services and manufacturing being the primary drivers of Malaysia’s economy, contributing a cumulative 82.6 per cent to the total GDP, registered a growth of 5.1 per cent (2022: 11.0%) and 0.7 per cent (2022: 8.1%) respectively.
By state, Selangor continues to be the fastest-growing economy, surpassing national growth, with a 5.4 per cent increase in 2023 (2022: 11.9%), reaching a value added of RM406.1 billion (2022: RM385.2 billion). The Services sector, leading the economy, grew by 6.1 per cent (2022: 13.6%), supported by Wholesale & retail trade, accommodation, food & beverage, as well as Utilities, transport, and ICT. The Manufacturing sector moderated to 2.0 per cent growth (2022: 9.0%), supported by Vegetable and animal oils & fats, food processing, beverages and tobacco products, as well as Non-metallic products, basic metals, and fabricated metal products. Meanwhile, the Construction sector strengthened to 10.2 per cent (2022: 4.2%) driven by all subsectors especially Civil engineering. Conversely, the Agriculture sector contracted by 7.3 per cent (2022: -0.5%) affected by the decline of the Fisheries, Crop and Forestry & logging subsectors.
In 2023, Pulau Pinang’s GDP reached RM116.0 billion, reflecting a moderate growth of 3.3 per cent (2022: 13.3%). The Services sector recorded a growth of 6.0 per cent (2022: 11.5%) driven by Wholesale & retail trade, accommodation and food & beverage as well as Utilities, transport and ICT. The Manufacturing sector which is the second highest contributor shrank by 0.5 per cent (2022: 15.9%) affected by the decrease in Electrical, electronic & optical products due to reduced demand for E&E products globally.
Johor, Malaysia’s third-largest economic contributor, achieved a value added of RM148.2 billion (2022: RM142.4 billion), marking a 4.1 per cent increase as compared to 8.5 per cent growth the previous year (Exhibit 2). The Services sector expanded by 5.4 per cent (2022: 11.0%), driven by growth in Wholesale & retail trade, accommodation, food & beverages, as well as Utilities, transport and ICT subsectors. The Manufacturing sector expanded by 2.8 per cent, supported by increases in Electrical, electronic & optical products as well as Petroleum, chemical, rubber & plastic products, particularly chemical products. The Construction sector continued to strengthen by recording a growth of 13.2 per cent (2022: 15.9%), due to double-digit growth in the Civil engineering and Specialised construction activities. Meanwhile, the Agriculture sector shrank by 1.1 per cent (2022: 3.1%), influenced by the drop in the Crop subsector (Oil Palm).
