economy

Six states contributed 73pct of the country's RM1.6t GDP in 2023

KUALA LUMPUR: Six states continued to contribute more than two-thirds to the country's RM1.6 trillion gross domestic product (GDP) in 2023, namely Selangor, Kuala Lumpur, Johor, Sarawak, Pulau Pinang and Sabah.

Four of the states surpassed the national growth rate of 3.6 per cent in 2023,  Selangor at 5.4 per cent, Pahang 5.2 per cent, Johor 4.1 per cent, and W.P. Kuala Lumpur at 3.7 per cent.

The economic performance of Selangor, Pahang, and Johor was driven by the services sector, followed by the manufacturing sector.

For Selangor and Johor, the expansion of its services sector by 6.1 per cent and 5.4 per cent respectively were due to growth in utilities, transport & storage, and information & communication subsectors.

Meanwhile, Pahang's services sector grew by 6.0 per cent, driven by wholesale & retail trade, food & beverages, and accommodation.

In Selangor, the manufacturing sector increased by 2.0 per cent, thanks to expansion in transport equipment, other manufacturing, and repair subsector (6.2 per cent), as well as vegetable and animal oils & fats and food processing (10.3 per cent).

Johor's manufacturing sector increased by 2.8 per cent, driven by growth in electrical, electronic, and optical products (2.9 per cent), while Pahang experienced a 6.7 per cent growth in petroleum, chemical, rubber, and plastic products, contributing to a 2.1 per cent increase in the state's manufacturing sector.

Meanwhile, Kuala Lumpur achieved an economic growth of 3.7 per cent, largely impelled by its services sector, which serves as the backbone of the state's economy.

This sector expanded by 4.9 per cent, supported by wholesale & retail trade, food & beverages, and accommodation.

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