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GDP constant prices are now expressed in 2015 prices
Malaysia’s economy contracted 5.6 per cent in 2020

State Socioeconomic Report 2019

Release Date : Thursday 06, August 2020 1200



In 2019, the Malaysia economy grew at a moderate rate of 4.3 per cent as compared to 4.8 per cent in the previous year. All sectors posted positive growth with the exception of Mining & quarrying. In momentum point of view, Agriculture and Mining & quarrying posted a better growth while other sectors registered slower performance than the previous year.

A total of 72.3 per cent of Malaysia’s total GDP was contributed by six main states. Selangor sustained as a major contributor to Malaysia’s economy with a share of 24.2 per cent, followed by W.P. Kuala Lumpur (16.4%), Sarawak (9.6%), Johor (9.4%), Pulau Pinang (6.7%) and Sabah (6.0%).

In general, seven states grew at a faster pace than the national growth (4.3%). Selangor topped the list with 6.7 per cent while W.P. Kuala Lumpur stood at 6.0 per cent. Kelantan rose to 5.3 per cent, W.P. Labuan (5.2%) Negeri Sembilan (5.1%), Kedah (4.6%) and Perlis (4.6%).

The country's economic growth is shaped by the economic performance at the state level. Diversification in the concentration of production between states has given a different impact on overall GDP performance. Seven states recorded better growth as compared to the preceding year, namely Kelantan 5.3 per cent (2018: 2.6%), Negeri Sembilan 5.1 per cent (2018: 4.2%), Kedah 4.6 per cent (2018: 4.0%), Perlis 4.6 per cent (2018: 3.3%), Pahang 3.7 per cent (2018: 3.0%), Terengganu 3.3 per cent (2018: 2.5%) dan Sarawak 2.5 per cent (2018: 2.2%). On the other hand, lower external demand scenarios have affected investment and export-oriented activities and products in Malaysia. Thus, the other eight states recorded slower growth as against to 2018 with a total contribution of 71.7 per cent to national GDP.

In terms of GDP per capita, six states recorded GDP per capita above national level (RM46,450) namely W.P. Kuala Lumpur (RM129,472), W.P. Labuan (RM77,798), Pulau Pinang (RM55,243), Selangor (RM54,995), Sarawak (RM53,358) and Melaka (RM49,172). In general, GDP per capita value is influenced by production performance and price factors. The year 2019 has seen a decline in prices for the country's major commodities, especially palm oil, crude oil and natural gas.


Consumer Price Index (CPI) grew by 0.7 per cent compared to 1.0 per cent in 2018. In 2019, three states surpassed the national inflation rate namely W.P Kuala Lumpur (1.2%), Pulau Pinang (1.2%) and Selangor & W.P. Putrajaya (0.9%).


Labour force in Malaysia increased by 2.0 per cent to approximately 15.6 million persons in 2019 as compared to 15.3 million persons in the previous year. Labour force participation rate (LFPR) rise 0.4 percentage points to 68.7 per cent as compared to 68.3 per cent in 2018. At the state level, an increase in LFPR was recorded in eight states, amongst them are W.P. Kuala Lumpur, Johor, Sabah, Sarawak and Melaka. On the other hand, eight states also posted lower unemployment rate, amongst them are Terengganu, Johor, Pulau Pinang, Sarawak and W.P. Putrajaya. Melaka recorded the lowest unemployment rate in 2019 with 1.1 per cent.


The number of graduates in Malaysia was 5.3 million persons in 2019, increased by 6.9 per cent from 4.9 million persons in 2018. The highest number of graduates was recorded by Selangor (1.65 million persons), Johor (493.1 thousand persons) and W.P. Kuala Lumpur (446.7 thousand persons). Graduates labour force participation rate (GLFPR) was 83.5 per cent, decreased 0.1 percentage points as against 83.6 per cent in 2018. Selangor and Sabah recorded the highest GLFPR in 2019 at 86.5 per cent followed by W.P. Putrajaya at 85.9 per cent and Sarawak 85.3 per cent. On the other hand, the lowest GLFPR recorded by Perlis with 76.1 per cent.


In 2019, the mean income in Malaysia was RM7,901 while Malaysia’s median income amounted to RM5,873. In terms of growth, the median income in Malaysia grew by 3.9 per cent per year in 2019 (2016: 6.6%) while the mean income rose at 4.2 per cent in 2019.

At the state level, W.P. Kuala Lumpur recorded the highest median income with RM10,549 followed by W.P. Putrajaya (RM9,983), Selangor (RM8,210), W.P. Labuan (RM6,726), Johor (RM6,427), Pulau Pinang (RM6,169) and Melaka (RM6,054). W.P. Putrajaya had the highest compounded annual growth rate of median income at 6.3 per cent over the period of 2016 to 2019, higher than the national median growth rate (3.9%).


In 2018, eight state governments recorded an increase in revenue collection. Sarawak’s state government recorded the highest revenue amounted to RM7.2 billion, followed by Sabah’s state government Sabah (RM4.2 billion) and Selangor (RM2.0 billion). Out of 14 city council, 10 city council recorded the highest financial position which involving W.P. Kuala Lumpur, Selangor, Johor, Perak, Pulau Pinang, Melaka, Sabah and Sarawak.

On the other hand, ten district councils which recorded the highest financial position involving local authorities in Selangor, Kelantan, Johor, Terengganu, Sabah and Perak. All of the district councils recorded better financial position except Majlis Daerah Penampang and Majlis Daerah Kota Tinggi. Majlis Daerah Hulu Selangor recorded the highest revenue of RM108.3 million in 2018, followed by Majlis Daerah Kuala Langat (RM80.8 million) and Majlis Daerah Kuala Selangor (RM64.1 million).

Detailed information and technical notes are included in the publication of the State Socioeconomic Report 2019. This publication can be accessed and free download through the eStatistik on the DOSM website, www.dosm.gov.my.


Johor Kedah Kelantan Melaka Negeri Sembilan
Pulau Pinang Pahang Perak Perlis Sabah
Sarawak Selangor Terengganu WP Kuala Lumpur WP Labuan


Released By:

 DrUzir_Mahidin    Dr_Uzir

6 August 2020


Contact person:

Mohd Yusrizal Ab. Razak 
Public Relation Officer

Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
Email : yusrizal.razak@dosm.gov.my

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