Gross Domestic Product Income Approach

Overview


Malaysia’s nominal GDP reached RM2.03 trillion in 2025,
with Compensation of employees contributing 33.9 per cent

Malaysia's Gross Domestic Product (GDP) at current prices amounted to RM2,025.4 billion in 2025, increased by 4.8 per cent (2024: 5.9%), driven by growth across in all economic sectors, with the Services and Manufacturing sectors remained the main contributors. However, the Mining & quarrying sector continued to record a decline in 2025.

As the economy expanded, Compensation of Employees (CE) increased by 5.8 per cent (2024: 6.1%) to record a total value of RM686.9 billion (2024: RM649.3 billion). Thus, the share of CE increased from 33.6 per cent in 2024 to 33.9 per cent in 2025. In the meantime, Gross Operating Surplus (GOS) continued to dominate the income components of GDP, with a contribution of 62.0 per cent, although lower than 63.6 per cent recorded in the previous year. The growth of GOS moderated to 2.1 per cent from 4.9 per cent in 2024, due to the slower performance in the Services, Agriculture and Construction sectors. In terms of value, GOS amounted to RM1,255.1 billion in 2025 as compared to RM1,229.6 billion recorded in the previous year.

Meanwhile, Net taxes contributed 4.1 per cent to Malaysia’s economy in 2025, higher than 2.8 per cent in the previous year. Net taxes grew substantially by 53.7 per cent (2024: 32.4%), driven by the continued positive growth in Taxes on production and imports, which increased by 12.9 per cent (2024: 13.4%). However, Subsidies continued to record a contraction of 36.5 per cent (2024: -3.4%), following the decline in petroleum and diesel subsidies. Accordingly, the value of Net taxes increased to RM83.5 billion from RM54.3 billion in 2024.

Percentage Share and Annual Percentage Change of Income Components


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