Overview

PERFORMANCE OF GROSS DOMESTIC PRODUCT (GDP) BY STATE, 2022

Malaysia's economy strengthened in 2022, culminating in an 8.7 per cent GDP growth with a value of RM1.5 trillion, surpassing the pre-pandemic value in 2019 of RM1.4 trillion. In general, all states indicated better performance in comparison to the previous year. Four states overtook the national growth, which are Pulau Pinang (13.1%), Selangor (11.9%), Pahang (10.8%) and W.P. Kuala Lumpur (9.2%), as shown in Chart 1. Meanwhile, Selangor, W.P. Kuala Lumpur, Johor, Sarawak, Pulau Pinang and Sabah remained the major contributors to the national economy, accounting for 72.9 per cent (2021: 72.2%) of Malaysia's total GDP. In terms of GDP per capita, five states exceeded the national GDP per capita, which were W.P. Kuala Lumpur (RM126,423), W.P. Labuan (RM85,522), Sarawak (RM80,772), Pulau Pinang (RM69,591) and Selangor (RM59,804).

Chart 1: GDP growth by state and kind of economic activity, 2022

CONSUMER PRICE INDEX

The Consumer Price Index (CPI) increased by 3.3 per cent (2021: 2.5%), with index points stood at 127.2 as against 123.1 in the previous year. This increase was influenced by Food & Beverages (5.8%); Restaurants & Hotels (5.0%); Transport (4.7%) and Furnishings, Household Equipment & Routine Household Maintenance (3.5%). This was followed by Recreation Services & Culture (2.3%); Miscellaneous Goods & Services (2.0%) and Housing, Water, Electricity, Gas & Other Fuels (1.8%). Overall, the CPI increased across the board for all states in 2022. The three states with the highest inflation rates were W.P. Putrajaya (7.3%), Selangor (4.2%) and Johor (3.4%). On the other hand, the states with the lowest inflation rates were W.P. Labuan (2.4%), followed by Kedah (2.6%) and Melaka (2.7%).

EXTERNAL TRADE STATISTICS

Malaysia's total trade reached RM2.8 trillion in 2022, with exports of RM1.6 trillion and imports of RM1.3 trillion. Malaysia’s exports expanded 25.0 per cent as compared to RM1.2 trillion in the previous year. Pulau Pinang remained the top exporter with a share of 29.9 per cent, followed by Johor (21.0%) and Selangor (17.8%). The key products that led the export growth in Pulau Pinang and Selangor were electronic integrated circuits, whereas Johor was led by refined petroleum. Concurrently, Malaysia’s imports also rose by 31.3 per cent, recording a new high of RM1.3 trillion (2021: RM987.3 million), owing to higher imports recorded in all states. Selangor continued to dominate Malaysia’s imports with a share of 25.7 per cent, followed by Pulau Pinang (22.6%) and Johor (22.4%). The major contributor for import in Selangor was other electrical and electronic products, while the primary contributors for Pulau Pinang and Johor were electronic integrated circuits and refined petroleum products, respectively.

LABOUR FORCE

In terms of the labour market, the national Labor Force Participation Rate (LFPR) increased by 0.7 percentage points to 69.3 per cent in 2022 (2021: 68.6%). At the state level, all states saw an increase in LFPR in a year-on-year comparison, topped by Selangor with 76.9 per cent. This was then followed by W.P. Putrajaya (75.7%), W.P. Kuala Lumpur (72.4%), Johor and Sabah (70.9%). Meanwhile, Kelantan recorded the lowest LFPR with 58.0 per cent, followed by Terengganu (58.8%).

In 2022, the unemployment rate is declining, dropped by 0.7 percentage points to 3.9 percent from 4.6 percent in 2021. As for the unemployment rate by states, all states recorded a decrease in unemployment rate. Unemployment rates was reported above the national rate in Sabah, W.P. Labuan and Perak with 7.5 per cent, 7.2 per cent and 4.6 per cent respectively. On the other hand, a low unemployment rate is observed in W.P. Putrajaya (1.0%), Melaka (1.6%) and Pahang (2.5%). 

DOMESTIC TOURISM

Domestic tourism in Malaysia experienced a significant rebound in terms of visitor arrivals, number of trips and tourism expenditures in 2022. The number of domestic visitors spiked by 160.1 per cent, from 66.0 million the previous year to 171.6 million. All states witnessed substantial boosts in domestic visitors, with Selangor receiving the most with 22.0 million. This was followed by W.P. Kuala Lumpur (16.9 million) and Sarawak (15.5 million).

Accordingly, the number of trips within the country increased from 72.4 million trips in 2021 to 207.8 million trips in 2022, with a growth of 187.0 per cent. In the same period, domestic tourism expenditure also increased 248.1 per cent to record RM64.1 billion (2021: RM18.4 billion).

STATE GOVERNMENT AND LOCAL AUTHORITIES’ STATISTICS

In 2021, the highest revenue was recorded by the Sarawak State Government, which totaled RM7.6 billion, followed by the Sabah State Government (RM5.5 billion), the Selangor State Government (RM2.3 billion) and the Terengganu State Government (RM1.6 billion). Meanwhile, the Sabah State Government recorded the highest surplus value (RM931.6 million), followed by the Selangor State Government (RM250.3 million) and the Melaka State Government (RM65.8 million).

As for Local Authority statistics, there are 19 councils/city councils in Malaysia. 10 councils/city councils with the highest financial performance are Dewan Bandaraya Kuala Lumpur (DBKL), Majlis Bandaraya Johor Bahru, Majlis Bandaraya Seremban, Majlis Bandaraya Shah Alam, Majlis Bandaraya Ipoh, Majlis Bandaraya Petaling Jaya, Majlis Bandaraya Pulau Pinang, Majlis Bandaraya Seberang Perai, Majlis Bandaraya Iskandar Puteri dan Majlis Bandaraya Subang Jaya. DBKL recorded the highest revenue at RM2.4 billion.

Meanwhile, 10 district councils showed the highest financial performance, including local authorities in Johor, Perak, Negeri Sembilan, Kedah and Pahang. Majlis Daerah Tangkak recorded the highest income in 2021 with RM81.1 million.

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Baharudin Mohamad
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Email: baharudin[at]dosm.gov.my
Phone: 03 8090 4681

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