Malaysia’s services sector saw a strong growth of 6.1% in Q1 2024, with revenue reaching RM594.5 billion, driven by multiple segments including wholesale and retail trade, food and beverages, and accommodation. E-commerce income experienced a slight year-on-year increase, while the number of individuals engaged in the sector rose by 1.7%. The volume index of services also showed positive growth, driven by various segments, reflecting a promising outlook for the sector.
11 May 2024 – Malaysia’s services sector experienced a robust year-on-year growth of 6.1% in the first quarter of 2024 (1Q2024), reaching RM594.5 billion in revenue, as reported by the Department of Statistics Malaysia (DOSM).
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin stated that all segments within the sector contributed favorably to this growth, with wholesale and retail trade, food and beverages, and accommodation segment leading the way, increasing by RM23.3 billion to RM451.6 billion.
He further noted significant increases in the information and communication; transportation and storage; professional, real estate, administrative, and support services; and private health, education, arts, entertainment, recreation, and personal services segments.
E-commerce income recorded a slight year-on-year growth of 0.5% in 1Q2024, amounting to RM293.2 billion, with a marginal quarter-on-quarter increase of 0.5%.
The sector also saw an increase in the number of individuals engaged, reaching 4.4 million, a rise of 72,200 individuals or 1.7% compared to the previous year.
Salaries and wages paid showed a year-on-year increase of RM1.0 billion, or 3.3%.
In terms of the volume index of services, Malaysia recorded an annual growth of 4.5%, with a total of 150.4 points in 1Q2024, and a quarter-on-quarter growth of 1.3%.
Mohd Uzir highlighted that the performance was driven by growth in wholesale and retail trade; food and beverages, and accommodation; information and communication; transportation and storage; business services; finance; and other services segments.
The other services segment saw a notable growth of 6.8%, attributed to increases in private health, private education, arts, entertainment, recreation, personal services, and other activities. – ref: TEM
