Overview

MALAYSIA’S LABOUR PRODUCTIVITY

Malaysia's economy expanded by 6.3 per cent in the fourth quarter of 2025 up from 5.4 per cent in the preceding quarter, reaching a value of RM457,681 million (Q3 2025: 5.1%; RM443,208 million). During the same period, total hours worked increased by 1.4 per cent to 9.9 billion hours (Q3 2025: 1.3%; 9.8 billion hours). As a result, labour productivity per hour worked increased 4.9 per cent with value added per hour worked amounting RM46.3 per hour (Q3 2025: 4.1%; RM45.2 per hour). Overall, the performance of labour productivity per hour worked for the year 2025 accelerated by 3.7 per cent (2024: 2.1%), with value added per hour worked reaching RM44.5 per hour (2024: RM42.9 per hour). Labour productivity per employment demonstrated an increase of  4.4  per  cent  in  Q4  2025,  recording  RM26,765  per  person  (Q3 2025: 3.9%; RM26,122 per person). Meanwhile, total employment rose to 17.1 million persons, registering a year-on-year growth of 1.8 per cent (Q3 2025: 17.0 million persons; 1.5%). Labour productivity per employment for the year of 2025 showed a positive momentum at 3.4 per cent (2023: 2.4%), with value added per employment of RM102,672 per person (2024: RM99,265 per person).

AGRICULTURE

Labour  productivity  per  hour  worked  in  the  Agriculture  sector  increased  5.5  per  cent  to  RM26.5 per hour (Q3 2025: 1.0%; RM28.4 per hour) during this quarter. Value added recorded 5.4 per cent growth, reaching a value of RM27,080 million (Q3 2025: 0.1%; RM29,088 million). Meanwhile, total hours worked recorded declined marginally by  0.1  per  cent,  registering  1,021  million  hours  (Q3  2025:  -0.9%;  1,024 million hours), while average hours worked fell by 0.2 per cent to 41.9 hours per week (Q3 2025: -0.8%;  41.4  hours  per  week).  In  2025,  labour  productivity  per  hour  worked  for  this  sector  increased  by  2.6 per cent with value added per hour worked at RM25.9 per hour (2024: 2.3%; RM25.2 per hour). In Q4 2025, labour productivity expressed as value added per employment for this sector posted considerably increase of 5.4 per cent to record value added per employment at RM14,430 per person (Q3 2025: 0.2%; RM15,264 per person), while the total number of employment marginally grew 0.003 per cent, registering 1,877 thousand persons (Q3 2025: -0.1%; 1,906 thousand persons). Throughout 2025, labour productivity per employment increased by 2.2 per cent, reaching value added per employment of RM55,961 per person (2024: 2.2%; RM54,762 per person).

MINING & QUARRYING

Labour productivity per hour worked in the Mining and quarrying sector in the fourth quarter of 2025 increased by 5.1 per cent albeit at a slower pace (Q3 2025: 9.7%), recording value added per hour worked of RM579.1 per hour (Q3 2025: RM522.4 per hour). Value added increased by 2.0 per cent, reaching RM26,678 million (Q3 2025: 9.7%; RM24,468 million). Meanwhile, total hours worked declined by 3.0 per cent, registering 46.1 million hours (Q3 2025: 0.1%; 46.8 million hours)  with  average  hours  worked  declined  by  4.3 per cent, recording 46.1 hours per week (Q3 2025: -1.7%; 47.1 hours per week). In 2025, the performance of labour productivity per hour worked for this sector demonstrated a recovery growth of 2.0 per cent (2024: -0.5%) with value added per hour worked at RM535.1 per hour (2024: RM524.6 per hour). In the meantime, labour productivity per employment for this sector rose 1.3 per cent to record value added per employment at RM346,036 per person (Q3 2025: 8.9%; RM317,634 per person). The total number of employment also increased 0.7 per cent, registering 77.1 thousand persons (Q3 2025: 0.8%; 77.0 thousand persons). For the full year 2025, labour productivity per employment marginally increased at 0.1 per cent to post value added per employment at RM1,289,415 per person (2024: 0.7%; RM1,287,906 per person).

MANUFACTURING

During this quarter, the Manufacturing sector recorded stable pace of increasing at 6.4 per cent in labour productivity per hour worked with value added per hour worked at RM61.9 per hour (Q3 2025: 4.2%; RM59.6 per hour) as value added stood at 6.1 per cent,  reaching  RM105,338  million  (Q3  2025:  4.1%;  RM101,438 million). The total hours worked declined at a negative 0.4 per cent, registering 1,700 million hours (Q3 2025: -0.1%; 1,702 million hours) with average hours worked fell by 1.4 per cent, recording RM45.4 hours per week (Q3 2025: -0.6%; RM45.8 hours per week). In 2025, labour productivity per hour worked rose   4.6 per cent, registering value added per hour worked of RM59.0 per hour (2024: 2.1%; RM56.5 per hour). In Q4 2025, this sector demonstrated growth in labour productivity per hour worked across all of its subsectors, except for Transport equipment, other manufacturing and repair (-2.7%). Strong expansions were recorded in Vegetable and animal oils & fats and food processing (15.8%), Electrical, electronic and optical products (11.4%), Beverages and tobacco products (10.6%), Non-metallic mineral products, basic metal and fabricated metal products (4.1%), Textiles, wearing apparel and leather products (2.3%), Wood products, furniture, paper products and printing (2.0%) and Petroleum, chemical, rubber and plastic product (1.5%). Likewise, labour productivity per employment for this sector posted a  5.1  per  cent  growth  to  record  value  added  per employment at RM36,479 per person (Q3 2025: 3.5%; RM35,357 per person) during this quarter, with total employment keeps growing at 0.9 per cent, registering 2,888 thousand persons (Q3 2025: 0.6%; 2,869 thousand persons). Additionally, labour productivity per employment for this sector increased 3.7 per cent in 2025, recording value added per employment of RM139,454 per person (2024: 2.6%; RM134,532 per person). Labour productivity per employment for this sector expanded during this quarter, supported by remarkable surge in Electrical, electronic and optical products (10.7%), Vegetable and animal oils & fats and food processing (9.8%), Beverages and tobacco products (5.8%), Non-metallic mineral products, basic metal and fabricated metal products (4.4%), Wood products, furniture, paper products and printing (2.2%), Petroleum, chemical, rubber and plastic products (0.5%) and Textiles, wearing apparel and leather products (0.3%). By contrast, Transport equipment, other manufacturing and repair recorded a reduction of 1.7 per cent.

CONSTRUCTION

In Q4 2025, labour productivity per hour worked in the Construction sector demonstrated a sustainable growth of 10.3 per cent, recording value added per hour worked at RM22.6 per hour (Q3 2025: 10.2%; RM23.0 per hour), as value added for this  sector  stood  at  12.2  per  cent,  equivalent  to  RM19,276  million  (Q3 2025: 17.5%; RM19,578 million). Meanwhile, the total hours  worked  increased  0.6  per  cent,  recording  854 million hours (Q3 2025: 1.5%; 850 million hours) with average hours worked reduced by 0.1 per cent to record 46.2 hours per week (Q3 2025: 0.2%; RM46.0 hours per week). In 2025, the growth of labour productivity per hour worked increased 10.2 per cent with value added per hour worked at RM22.0 per hour (2024: 17.6%; RM19.9 per hour). Labour productivity per employment increased 10.1 per cent to record value added per employment at RM13,510 per person (Q3 2025: 10.8%; RM13,754 per person) during this quarter, while the total number of employment grew 0.8 per cent, registering 1,427 thousand persons (Q3 2025: 0.9%; 1,424 thousand persons). For the full year 2025, labour productivity per employment for this sector posted a significant growth of 11.2 per cent, recording value added per employment of RM52,514 per person (2024: 16.4%; RM47,223 per person).

SERVICES

In the fourth quarter of 2025, the Services sector posted an increase of 4.0 per cent in labour productivity per hour worked  with  value  added  per  hour  worked  at  RM43.6  per  hour  (Q3 2025:  3.4%;  RM42.5 per hour). Value added for this sector grew at 6.3 per cent, reaching RM272,938 million (Q3 2025: 5.5%; RM262,502 million). In the meantime,  the  total  hours  worked  also  increased  2.2  per  cent,  registering  6,259 million hours (Q3 2025: 2.0%; 6,173 million hours) with average hours worked fell by 0.2 per cent to record 44.7 hours per week (Q3 2025: -0.02%; 44.7 hours per week). In 2025, labour productivity per hour worked for this sector demonstrated a stable increase of 3.3 per cent with value added per hour worked at RM42.0 per hour (2024: 1.3%; RM40.7 per hour). Growth in labour productivity per hour worked in the fourth quarter of 2025 was attributed to the expansion across all subsectors, except for Utilities (-1.0%) and Finance and insurance (-2.4%). Food & beverages and accommodation drove the overall performance by posting a growth of 7.9 per cent, followed by Other Services (7.2%), Information and communication (6.4%), Transportation and storage (5.6%), Real estate and business services (2.8%) and Wholesale and retail trade (2.4%). During this quarter, labour productivity per employment increased 3.7 per cent with value added per employment at RM25,197 per hour (Q3 2025: 3.3 %; RM24,552 per hour) as the total number of employment increased 2.5 per cent, recording 10,832 thousand persons (Q3 2025: 2.1%: 10,692 thousand persons). The expansion in labour productivity per employment in this sector in Q4 2025 was due to increment across most of its subsectors, notably Information and communication (7.3%), Other services (5.9%), Transportation and storage (5.7%), Food & beverages and accommodation (5.1%), Real estate and business services (4.9%), Wholesale and retail trade (3.2%) and Utilities (1.5%). Conversely, Finance and insurance recorded a decline of 0.7 per cent.

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