Malaysia’s Services Sector Up 6 Pct Y-o-Y In 1Q 2025

KUALA LUMPUR, May 13 (Bernama) -- Malaysia’s services sector grew by 6.0 per cent year-on-year in the first quarter of 2025 (1Q 2025), reaching RM630 billion in revenue, according to the Department of Statistics Malaysia (DoSM).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth was supported by positive performance across all segments of the services sector such as the wholesale and retail trade, food and beverages, as well as the accommodation segment recorded an increase of RM24.2 billion or 5.3 per cent, reaching RM475.7 billion.

“This robust expansion was driven by higher consumer spending and a rise in domestic travel, spurred by seasonal events such as Chinese New Year celebrations, preparations for Ramadan and Aidilfitri, as well as the reopening of the school year.

“Additionally, a 31.3 per cent year-on-year (y-o-y) increase in international arrivals, reaching 6.7 million in the first two months of this year, further bolstered this growth,” he said in a statement today.

Mohd Uzir said the services sector’s performance was further supported by notable growth in the information and communication as well as transportation and storage segments, which expanded by 5.9 per cent y-o-y to reach RM87.9 billion in the first quarter.

He said the information and communication subsector recorded a growth of 3.3 per cent, driven primarily by telecommunications activity, which rose by 3.8 per cent and contributed 63.5 per cent to the total value of the subsector.

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“This growth trend is in line with the increasing demand for digital connectivity and data services, reflecting the ongoing digitalisation efforts across industries and greater reliance on telecommunication services,” he said.

Besides, the chief statistician reported that Malaysia’s e-Commerce income for the first quarter hit RM310.6 billion, marking a 3.4 per cent y-o-y increase, primarily driven by a 6.0 per cent rise in the services sector.

“This growth highlights the continued expansion of e-commerce in supporting services output and consumer activity.

“The total number of persons engaged in this sector stands at 4.5 million, an increase of 1.9 per cent year-on-year. This growth was led by the transport and storage subsector which saw an increase of 3.5 per cent, followed by the wholesale and retail trade subsector which grew by 2.4 per cent,” he noted.

Meanwhile, total salaries and wages increased by 4.1 per cent y-o-y to register RM33.6 billion. The increment was attributed to the wholesale and retail trade as well as the transportation and storage subsectors which rose 3.9 per cent and 4.8 per cent respectively.

In conclusion, Malaysia’s progression toward a high-value, knowledge-based economy continues to be underpinned by the services sector, which remains a key driver of national growth.

“Sustained by resilient consumer demand and accelerated digitalisation, strategic focus on tourism development, technological innovation, and business facilitation will be instrumental in maintaining growth momentum and strengthening Malaysia’s position as a competitive and forward-looking economic hub in the region,” he added.

-- BERNAMA