Overview

MALAYSIA’S LABOUR PRODUCTIVITY

Labour productivity per hour worked in Q1 2025 accelerated 1.0 per cent (Q4 2024: 1.4%) with value added per hour worked at RM42.5 per hour (Q4 2024: RM44.2 per hour), while total hours worked increased 3.3 per cent (Q4 2024: 3.5%) to register 9.8 billion hours (Q4 2024: 9.7 billion hours). In the meantime, Malaysia's economic performance recorded 4.4 percent growth in the first quarter of 2025, reaching value added of RM415,224 million (Q4 2024: 4.9%; RM430,477 million). Meanwhile, labour productivity per employment increased 1.3 per cent in  Q1  2025  to  record  value  added  per  employment  at  RM24,580  per  person  (Q4 2024:  2.1%;  RM25,635 per person),  as  the  total  number  of  employed  persons  grew  3.0 per cent to register 16.9 million persons (Q4 2024: 2.7%; 16.8 million persons).

AGRICULTURE

In the first quarter of 2025, labour productivity per  hour  worked  for  the  Agriculture  sector  increased  0.1 per cent with value added per hour worked at RM23.3 per hour (Q4 2024: -1.9%; RM25.1 per hour).  The  value  added  recorded  0.6  per  cent  growth,  reaching  a  value  of  RM23,709  million  (Q4 2024: -0.7%; RM25,683 million). Simultaneously, the total hours worked increased 0.5 per cent to register 1,017 million hours (Q4 2024: 1.3%; 1,022 million hours), while average hours worked rose 0.2 per cent to record 41.6 hours per week (Q4 2024: 0.1%; 42.0 hours per week). Labour productivity expressed as value added per employment for this sector increased 0.3 per cent, recorded value added per employment at RM12,603 per person (Q4 2024: -1.9%; RM13,686 per person) during this quarter, while the total number of employed persons grew 0.3 per cent, posted 1,881 thousand persons (Q4 2024: 1.2%; 1,877 thousand persons).

MINING & QUARRYING

In Q1 2025, the Mining and quarrying sector recorded labour productivity per hour worked at a negative 0.9 per cent with value added per hour worked of RM551.1 per hour (Q4 2024: -2.4%; RM550.9 per hour), as value added slumped  at  a  negative  2.7  per  cent,  equivalent  to  RM25,492 million  (Q4 2024: -0.7%; RM26,158 million). Meanwhile, total hours worked declined at a negative 1.8 per cent to post 46 million hours (Q4 2024: 1.8%; 47 million hours) with average hours worked fell at a negative 1.0 per cent to record 47.1 hours per week (Q4 2024: 1.3%; 48.2 hours per week).  Labour productivity measured by value added per employment for this sector deteriorated at a negative 3.2 per cent to record value added per employment at RM332,946 per person (Q4 2024: -1.1%; RM341,522 per person) during this quarter. The total number of employed persons increased 0.5 per cent,  registered  a  total  of  77  thousand  persons  (Q4 2024: 0.4%; 77 thousand persons).

MANUFACTURING

In the first quarter of 2025, the Manufacturing sector demonstrated an expansion of 2.8 per cent in labour productivity per hour worked, recorded value added per  hour  worked  of  RM56.4  per  hour  (Q4 2024: 2.2%; RM58.2 per hour) as value added increased 4.1 per cent, reaching RM95,676 million (Q4 2024: 4.2%; RM99,328 million).  The  total  hours  worked  increased  1.3  per  cent  to  register  1,697  million  hours  (Q4 2024: 2.0%; 1,707 million hours), while average hours worked declined at a negative 0.7 per to record RM45.6 hours per week (Q4 2024: 0.5%; RM46.0 hours per week). Most of subsectors experienced growth in labour productivity per hour worked for the Manufacturing sector in Q1 2025, including Vegetable and animal oils & fats and food processing (9.3%), Beverages and tobacco products (7.1%),  Electrical, electronic and optical products (6.6%), Textiles, wearing apparel and leather products (2.7%),  Wood products, furniture, paper products and printing (1.9%) and Petroleum, chemical, rubber and plastic product (0.3%); except for Transport equipment, other manufacturing and repair (-6.1%) and Non-metallic mineral products, basic metal and fabricated metal products (-2.7%). Simultaneously, labour productivity per employment for this sector rose 2.2 per cent to record value added per employment at RM33,299 per person (Q4 2024: 2.8%; RM34,712 per person) during this quarter, with total employment sustained at 1.9 per cent, registered 2,873 thousand persons (Q4 2024: 1.4 per cent; 2,861 thousand persons). Five (5) subsectors recorded an increment in labour productivity per employment for the Manufacturing sector during this quarter, namely Electrical, electronic and optical products (6.4%), Vegetable and animal oils & fats and food processing (6.3%), Wood products, furniture, paper products and printing (1.1%), Petroleum, chemical, rubber and plastic products (1.0%) and Non-metallic mineral products, basic metal and fabricated metal products (0.9%). On the other hand, three (3) other subsectors deteriorated, namely Transport equipment, other manufacturing and repair (-8.8%), Textiles, wearing apparel and leather products (-0.6%) and Beverages and tobacco products (-0.1%).

CONSTRUCTION

During  this  quarter,  labour  productivity  per  hour  worked  for  the  Construction  sector  grew  11.3 per  cent  to  record  value  added  per  hour  worked  at  RM20.9  per  hour  (Q4 2024:  18.7%;  RM20.5 per hour) as value added significantly increased 14.2 per cent, reaching RM17,760 million (Q4 2024: 20.7%; RM17,371 million). Meanwhile, the total hours worked increased 2.5 per cent to post 851 million hours (Q4 2024: 1.7%; 849 million hours), with average hours worked rose 1.7 per cent, registered 46.3 hours per week (Q4 2024: 0.9%; RM46.3 hours per week). Labour productivity per employment for this sector increased 13.2 per cent with value added per employment at RM12,519 per person  (Q4 2024:  19.7%;  RM12,275 per person)  during  this  quarter.  Meanwhile,  the  total  number  of  employment  sustained  at  0.9 per cent, recorded 1,419 thousand persons (Q4 2024: 0.9%; 1,415 thousand persons).

SERVICES

Labour productivity per hour worked for the Services sector in Q1 2025 expanded 0.5 per cent with value added per hour worked at RM40.3 per hour (Q4 2024: 0.9%; RM41.9 per hour) as value added grew 5.0 per cent or equivalent to RM247,887 million (Q4 2024: 5.5%; RM256,662 million). In the meantime, the total hours worked rose 4.5 per cent,  reaching  6,153  million  hours  (Q4 2024:  4.6%;  6,122 million hours),  with  average  hours  worked  increased  0.4  per  cent  to  record  44.8  hours  per week (Q4 2024: 0.8%; 44.8 hours per week). Despite the small increase in labour productivity per hour worked for this quarter, the Services sector demonstrated performance variation among subsectors, namely Real estate and business services (6.0%), Transportation and storage (4.3%), Other services (2.8%), Information and communication (0.8%) and Wholesale and retail trade (0.6%). However, three (3) other subsectors showed a negative growth, namely Utilities (-6.3%), Food & beverages and accommodation (-2.5%) and Finance and insurance (-0.4%). In the first quarter of 2025, labour productivity per employment for this sector increased 0.8 per cent to record value added per employment at RM23,291 per person (Q4 2024: 1.8 %; RM24,298 per hour)  as  the  total  number  of  employment  increased  4.1  per  cent,  recorded  10,643  thousand  persons  (Q4 2024:  3.7%:  10,563 thousand persons). The performance in labour productivity per employment for the Services sector in the first quarter of 2025 was attributed to the growth of six(6) subsectors, namely Real estate and business services (5.1%), Transportation and storage (4.3%), Other services (2.9%), Finance and insurance (0.8%), Food & beverages and accommodation (0.2%) and Wholesale and retail trade (0.1%); whereas two (2) other subsectors declined, namely Utilities (-5.9%) and Information and communication (-0.1%).

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