Malaysia’s nominal GDP in 2023 amounts to RM1.8 trillion

PETALING JAYA: In 2023, Malaysia’s nominal GDP reached RM1.8 trillion, marking a 1.6% growth, down from 15.8% in the previous year. Chief Statistician Malaysia Datuk Seri Dr. Mohd Uzir Mahidin highlighted that despite the slower growth, the economy remained resilient, driven by a 6.7% increase in private final consumption expenditure.

This increase was supported by improved employment and a new minimum wage of RM1,500. Compensation of employees (CE) grew by 4.2%, while gross operating surplus (GOS) fell by 1.8%. CE’s share of income distribution rose to 33.1%, while GOS, despite its decline, accounted for 64.8% of GDP.

In 2023, Malaysia’s compensation of employees (CE) grew due to the services, manufacturing, and construction sectors. The services sector led with a 4.3% growth, particularly in wholesale and retail trade, food & beverages, and accommodation. The manufacturing sector saw a 3.3% increase, while construction and mining & quarrying grew by 6.8% and 9.2%, respectively. Agriculture’s CE rose marginally by 0.7%.

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Malaysia’s nominal GDP

The services and manufacturing sectors were the largest contributors to CE, representing 62.5% and 23.6%, respectively. The construction and agriculture sectors accounted for 8.1% and 3.5%, while mining & quarrying contributed 2.2%.

Gross Operating Surplus (GOS) declined, mainly due to downturns in the mining & quarrying (-12.1%), agriculture (-13.2%), and manufacturing (-5.6%) sectors, influenced by falling commodity prices. However, services and construction sectors experienced growth in GOS at 5.3% and 1.3%, respectively.

Net taxes surged by 242% or RM37.7 billion, driven by higher tax revenue and reduced subsidies. Taxes on production and imports rose by 3.1%, while subsidies decreased by 34.2%.

In Southeast Asia, CE typically accounts for less than 40% of GDP, with GOS forming a larger share.