KUCHING: Despite global economic uncertainty, geopolitical conflicts and disruptions in food supply chains, all states in Malaysia demonstrated promising economic performance in 2022, according to the Gross Domestic Product (GDP) report released by the Department of Statistics Malaysia (DOSM) on Tuesday (June 27).
The report revealed positive growth across all sectors, positioning Malaysia on a trajectory of recovery.
“The reopening of Malaysia’s international borders on April 1, 2022, played a significant role in accelerating the recovery of all economic sectors, particularly the tourism industry.
“As a result, Malaysia achieved an impressive 8.7 per cent GDP growth in 2022, amounting to RM1.5tril in value added, surpassing the pre-pandemic value in 2019 of RM1.4tril,” DOSM said.
The services sector, which dominates the national economy, experienced a robust growth of 10.9 per cent compared to 2021, followed by the manufacturing sector, which saw an increase of 8.1 per cent.
The agriculture sector showed a recovery of 0.1 per cent, while the mining and quarrying sector grew by 2.6 per cent, and the construction sector rebounded to 5.0 per cent.
Among the states, Penang (13.1 per cent), Selangor (11.9), Pahang (10.8), and Kuala Lumpur (9.2) exceeded the national growth rate in 2022.
Sarawak’s economy strengthened by 6.5 per cent, driven by a 9.6 per cent growth in the services sector.
“The rise in transportation activities, along with domestic and international travel, contributed to this growth.
“Furthermore, Sarawak’s manufacturing sector, which focuses on refined petroleum products, experienced an uplift with a 5.6 per cent growth, supported by the increased global demand for fuel.”
In terms of GDP per capita, all states showcased improved performance compared to 2021.
“Five states surpassed the national GDP per capita, namely Kuala Lumpur (RM127,199), Labuan (RM85,560), Sarawak (RM80,857), Pulau Pinang (RM69,684), and Selangor (RM59,908),” according to the DOSM report.
Despite prevailing uncertainties in the global economic landscape, DOSM projected Malaysia to experience moderate growth this year.
“The Leading Index for April 2023 indicated gradual economic growth in the coming months, although a decline in all index components was observed.
“The first quarter of 2023 saw a slower growth of 5.6 per cent compared to 7.1 per cent in the previous quarter.”
Amid the uncertain economic climate, the labour market showed signs of strength. “The Labour Force Participation Rate increased to 69.8 per cent in the first quarter of 2023, compared to 69.5 per cent in the fourth quarter of 2022.”
“Additionally, the Unemployment Rate dropped to 3.5 per cent in the first quarter of 2023, down from 3.6 per cent in the previous quarter,” DOSM added.
