Malaysia Economic Sectors Show Broad-Based Growth in 2024
PUTRAJAYA, 2 April 2025 – Malaysia’s economy exhibited strong resilience in 2024, with all major economic sectors registering positive growth, led by a robust recovery in the services sector, according to the Department of Statistics Malaysia (DOSM). The national gross domestic product (GDP) expanded by 5.1%, significantly outpacing the 3.6% growth recorded in 2023, signaling stronger consumer confidence, sustained policy support, and increased regional demand.
The Chief Statistician, Datuk Seri Dr. Mohd Uzir Mahidin, highlighted that the broad-based recovery reflects not only a rebound from previous slowdowns but also signs of a structural shift toward higher-value economic activities, particularly in services and manufacturing.
Sectoral Breakdown: Growth by Numbers
1. Services Sector (+5.4%)
As the backbone of the Malaysian economy, the services sector continued to lead, buoyed by gains in:
- Retail and wholesale trade
- Finance and insurance
- Information and communication technologies
- Accommodation and food services
Tourism-related services benefited from improved international arrivals, especially from ASEAN, China, and the Middle East. Meanwhile, digital services and fintech platforms drove revenue in the information and communications sub-sector.
2. Manufacturing Sector (+4.2%)
The manufacturing sector remained robust, particularly in:
- Electrical and electronics (E&E)
- Pharmaceuticals
- Transport equipment
Export demand for semiconductors, medical devices, and renewable energy components supported growth, although global headwinds tempered expansion in petrochemicals and heavy industry.
3. Construction Sector (+17.5%)
The construction industry recorded double-digit growth, driven by:
- Ongoing mega infrastructure projects like the ECRL, RTS Link, and MRT3
- Affordable housing schemes under PR1MA and Rumah Mesra Rakyat
- Revived commercial developments and data center construction
This surge reflects policy-driven stimulus and increased private sector confidence, making construction the fastest-growing economic segment of 2024.
4. Agriculture Sector (+3.1%)
Agriculture posted modest growth, supported by:
- Stable palm oil yields
- Modernization of paddy and rice production
- Diversification into aquaculture and organic farming
Efforts to revitalize agro-based SMEs and improve food security contributed to positive momentum, although challenges in rubber and cocoa segments persisted.
5. Mining & Quarrying (+0.9%)
The sector showed marginal recovery with stable oil prices and rising demand for LNG. Malaysia’s position as a reliable energy exporter remains intact, though global energy transitions are reshaping the sector’s medium-term outlook.
External Trade and Regional Dynamics
In 2024, Malaysia’s total trade increased by 6.5%, with notable export growth to the ASEAN region, the European Union, and Middle Eastern countries. Strong demand for palm oil, machinery, and medical gloves contributed to trade surpluses, despite a global slowdown in electronics demand in the second half of the year.
“The diversification of export destinations and products is cushioning Malaysia against global volatility,” said a senior trade economist from Bank Negara Malaysia.
Government Policy and Stimulus Role
The government’s Madani Economy framework and implementation of the 12th Malaysia Plan (12MP) were pivotal in stimulating growth, especially through:
- Green economy investments
- Digital infrastructure upgrades
- Targeted cash assistance for B40 households
- Re-skilling initiatives for displaced workers
Sector-specific blueprints such as the New Industrial Master Plan (NIMP 2030) and the National Energy Transition Roadmap (NETR) have also begun laying the groundwork for future high-tech and green jobs.
Challenges and Risks Ahead
While the 2024 numbers reflect a healthy recovery, DOSM and independent economists have warned of the following concerns:
- Geopolitical tensions and trade wars impacting supply chains
- Currency volatility, particularly with the weakening ringgit
- Inflationary pressures in food and transportation sectors
- Youth unemployment and wage stagnation in rural regions
Dr. Mohd Uzir noted that maintaining momentum in 2025 will require “balanced policies that encourage investment, protect consumers, and ensure equitable growth.”
2025 Outlook
Preliminary projections suggest that Malaysia could achieve GDP growth of between 4.5% and 5.5% in 2025, depending on global economic conditions, commodity price trends, and policy execution.
The government has reaffirmed its commitment to steering the economy toward:
- Higher productivity per capita
- Green and digital economic transformation
- Inclusive growth through social protection and education reforms
Foundation for Sustainable Growth
The broad-based sectoral growth in 2024 reaffirms Malaysia’s position as a resilient and adaptive middle-income economy. With prudent policies, targeted investments, and a maturing services sector, the country is well on its way to achieving the aspirations outlined in its Vision 2030 agenda.
For continued insights into Malaysia’s economic transformation and industry-specific performance, stay with ForwardMalaysia.my.
