Malaysia's gross output value shrank by RM196.8 billion to RM2,907.1 billion in 2020 due to the COVID-19 pandemic
In 2020 the world was hit by COVID-19 and the World Health Organization (WHO) on 11th March 2020 had declared a pandemic when more than 118,000 cases of coronavirus disease occurred in over 110 countries and regions around the world and this figure continued to escalate. Malaysia was not spared and the government's main action in curbing the spread of the pandemic is to implement the Movement Control Order (MCO) which means the complete closure of business activities except for essential services and inter-state travel was restricted. However, the government has gradually opened up business activities as well as encouraged work from home and Home Teaching & Learning (PdPR) was introduced under the Conditional Movement Control Order (CMCO) and the Recovery Movement Control Order (RMCO).
The impact of the COVID-19 pandemic on the country's economic activities can be seen whereby the output of the economic sector in 2020 contracted 6.3 percent or RM196.8 billion to RM2,907.1 billion as compared to RM3,103.9 billion in 2019. The largest reduction in gross output value was Services sector by RM115.9 billion (-9.1%). This was followed by the Mining & quarrying sector at RM40.4 billion (-24.9%), Construction sector at RM39.2 billion (-18.5%) and the Manufacturing sector at RM6.9 billion (-0.5%). Meanwhile, the Agriculture sector showed an increase in the value of gross output of RM5.7 billion (7.2%).
The value of intermediate inputs also recorded a decrease of 5.0 per cent to RM1,748.2 billion (2019: RM1,841.0 billion) while value added also decreased to RM1,158.9 billion (2019: RM1,262.8 billion), declined by 8.2 per cent (RM103.9 billion). The Services sector was the major contributor to value added at 55.8 per cent, recorded the highest decline in value added of RM46.8 billion (-6.7%). This was followed by the Mining & quarrying sector at RM34.1 billion (-26.4%), the Construction sector at RM15.1 billion (-20.1%) and the Manufacturing sector with a value of RM9.3 billion (-2.9%). On the other hand, the Agriculture sector showed an increase in value added of RM1.4 billion (2.9%).
From a labour market perspective, the country experienced unprecedented trend when unemployment rate reaching 4.5 per cent in 2020, the first time after almost three decades. Other than that, strict adherence to COVID-19 containment measures had limited the business operation hours and led to the reduction in working hours and affected the income received. In 2020, the number of employees decreased by 229,244 person to 9,817,482 person (2019: 10,046,726 person) or a decrease of 2.3 per cent. Meanwhile, the value of salaries and wages paid also declined by3.6 per cent to RM319.3 billion compared to RM331.3 billion in 2019.
The full publication of the Annual Economic Statistics All Sectors 2021 can be downloaded through eStatistik Portal.
For more details, please refer to the Department’s portal: www.dosm.gov.my
DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
31 January 2022
Mohd Yusrizal bin Ab. Razak
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
E-mail : yusrizal.razak[at]dosm.gov.my