Sarawak’s GDP expands, services sector thrives

4 months ago 29

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KUCHING: Sarawak maintained its position as the fourth largest contributor to Malaysia’s Gross Domestic Product (GDP) in 2023, following Selangor, W.P. Kuala Lumpur, and Johor.

According to the Department of Statistics Malaysia (DOSM), Sarawak’s GDP grew by 1.2 per cent in 2023.
“Sarawak’s economy was mainly driven by the Services sector, which accounted for 38.3 per cent of the state’s GDP. The Manufacturing sector followed, contributing 26.5 per cent, while the Mining and Quarrying sector accounted for 20.8 per cent. Agriculture represented 10.6 per cent, and the Construction sector made up 3.6 per cent,” it stated.

In terms of sectoral economic performance, the Services sector expanded by 5.4 per cent, with a value-added of RM54.5 billion.

The growth was led by the Wholesale and retail trade, food & beverage, accommodation, as well as Utilities, transportation & storage, and information & communication sub-sectors, which grew by 6.5 per cent and 6.3 per cent respectively.

The Manufacturing sector contracted by 3.9 per cent, influenced by declines in Petroleum, chemical, rubber, and plastic products, particularly refined petroleum products.

The Mining and quarrying sector also shrank by 1.0 per cent, following a decrease in the Natural gas (-1.1%) and Crude oil & condensate subsectors (-2.3%).

“This decline affected Sarawak’s overall economic performance, given the significant contribution of the oil and gas industry to the state’s economy,” it stated.
The decrease in oil and gas-related activities not only reduced revenue from export activities but also dampened industrial production, resulting in more subdued economic growth for Sarawak in 2023.
Nevertheless, Sarawak’s GDP increased by 4.3 per cent, surpassing the national level when the oil and gas industries were excluded.
In terms of GDP per capita, Sarawak recorded the fourth-highest GDP per capita in Malaysia.
“The state continued to outperform the national level, standing at RM72,411 compared to the national level of RM54,612,” it added.