Tuesday, March 28

Malaysia’s GDP driven mainly by services, manufacturing sectors


KUCHING: Amid the more challenging external environment, Malaysia’s economy is projected to experience a steady pace of growth in gross domestic product (GDP) between four to five per cent in 2012, driven mainly by the services and manufacturing sectors.

On the supply side, of all its sectors such as services, agriculture, mining, manufacturing and construction are projected to register growth on 2012, according to data by Malaysian Institute of Economic Research (MIER).

Of all supply economic sectors that contributed to the Malaysian economy, the top three components were the services, manufacturing and agriculture sectors.

The largest contributor to real GDP was services with 58.6 per cent in 2011. The services sector managed to maintain its year-on-year growth rate at 6.8 per cent in 2011, unchanged from the previous year.

MIER stated that the domestic-oriented services sector is fast becoming a critical economic sector in Malaysia, significantly outpacing the real GDP growth rate, which came in at 5.1 per cent.

The next largest contributor to real GDP was manufacturing sector with 27.5 per cent share of GDP. However, its growth rate of 4.5 per cent year-on-year in 2011 was below that of real GDP growth due to uncertainties in the export-oriented markets.

For the agriculture sector, in 2011 it maintained growth at 7.3 per cent, unchanged from the previous year in 2010, supported by a recovery in the production of crude palm oil.

As percentage share of real GDP by sector, the three largest sectors in 2011 were services (58.6 per cent), manufacturing (27.5 per cent) and agriculture (7.3 per cent), while the remaining sectors were mining (6.3 per cent) and construction (3.2 per cent).

According to MIER, the main growth driver for 2012 is expected to be the largest contributor to real GDP. MIER cited that the proper implementation of the 20 initiatives would definitely help drive the economy forward.