Service sector continues to lead economic growth
Published on: Friday, May 22, 2015
Kuala Lumpur: The services sector, which continues to be the primary driver of economic growth in the 10th Malaysia Plan (10MP) (2010-2015), is expected to expand 6.3 per cent per annum and contribute 53 per cent to gross domestic product (GDP). The growth in the sector was supported largely by the wholesale and retail trade, finance and insurance, and communications sub-sectors. "Labour productivity in the services sector is estimated to increase at an average rate of 2.8 per cent per annum, mainly contributed by the information and communications technology (ICT), real estate and business, finance and insurance, and transport and storage sub-sectors," the Economic Planning Unit (EPU) of the Prime Minister's Department said in the 11th Malaysia Plan (11MP).
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The EPU said the sector continued to be the main source of employment, providing 8.4 million jobs or 60.9 per cent of total employment, while exports of services is estimated to grow 5.6 per cent per annum to reach 18 per cent of total exports this year. The EPU said the ICT industry, including e-commerce, is estimated to contribute 16.8 per cent to the GDP this year while the ICT services sub-sector contribution to the GDP is estimated to increase from 5.2 per cent in 2010 to 5.5 per cent in 2015. However, it said the ICT manufacturing sub-sector contribution is estimated to decrease from 4.6 per cent in 2010 to 3.9 per cent this year, reflecting the transition of the ICT sector from manufacturing towards higher value-added services. On the tourism industry, it said Malaysia continued to be one of the world's leading tourist destinations with tourist arrivals increased from 24.6 million in 2010 to 27.4 million in 2014.
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"Tourism remains an important source of foreign exchange earnings at RM72 billion in 2014, an increase of 27.4 per cent from RM56.5 billion in 2010," it said, adding that the industry provided 2.2 million jobs or 16.8 per cent of total employment in 2013. Apart from services, other major economic sectors such as manufacturing, agriculture, construction and small and medium enterprise were also expected to record growth of 4.8 per cent, 2.4 per cent, 11.1 per cent and 7.5 per cent per annum, respectively, during the 10MP.
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It said manufactured goods dominated exports, contributing RM636.7 billion or 81.8 per cent of total exports in 2015. "The growth of the sector was contributed largely by the electrical and electronic (E&E) and chemical sub-sectors. "The value added E&E increased from RM44.2 billion in 2011 to RM53.8 billion in 2015, partly due to new applications for semi-conductors in digitalisation, mobility, connectivity, energy efficiency, and miniaturisation," it said. Stay up-to-date by following Daily Express’s Telegram channel.
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