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

Gross Domestic Product (GDP) By State 2020

Release Date : Tuesday 29, June 2021 1200

 

PERFORMANCE OF GROSS DOMESTIC PRODUCTS (GDP) BY STATE 2020

The COVID-19 pandemic has affected the whole world and Malaysia has no exception in experiencing the impact of this epidemic where in 2020 a total of 113,010 positive cases were recorded with 471 cases of deaths. The health crisis has also affected the trajectory of the country's economic growth. The various phases of the Movement Control Order (MCO) from 18 March 2020 which came into force to curb the spread of the COVID-19 outbreak resulted to the temporary closure of several economic sectors and a reduction in operating hours. In 2020, Malaysia’s economy contracted by 5.6 per cent as compared to 4.4 per cent in the previous year (Chart 1).

In general, all sectors recorded negative growth of which the Services sector decelerated 5.5 per cent (2019: 6.2%), Manufacturing contracted 2.6 per cent (2019: 3.8%) and Agriculture declined 2.2 per cent (2019: 2.0%). However, two other sectors, namely Construction and Mining & quarrying recorded two digits decline at a negative 19.4 per cent (2019: 0.4%) and 10.6 per cent (2019: -0.6%) respectively.

 

Chart 1 : National GDP, 1960-2020

 

The country's economic growth was contributed by the economic performance at the state level. Variations in product concentrations between states have varying impacts on the overall performance of Gross Domestic Product (GDP) by State, especially in facing COVID-19 outbreak crisis. National GDP experienced a reduction of RM80.4 billion as compared to 2019. At the state level, Selangor recorded the highest contraction of RM18.3 billion, followed by W.P. Kuala Lumpur (RM17.5 billion), Sarawak (RM9.6 billion) and Sabah (RM8.1 billion). The total contribution of these four states amounted to 66.7 per cent of the national reduction value.

In general, eight states posted better growth than national GDP (-5.6%) albeit a negative performance recorded by all state. W.P. Labuan contracted marginally to negative 0.5 per cent, followed by Kelantan (-1.1%), Kedah (-1.7%), Pulau Pinang (-2.1%), Perak (-2.3%), Negeri Sembilan (-3.6%), Johor (-4.6%) and Selangor (-5.3%) as shown in Chart 2. Meanwhile, despite the impact of this decline, Selangor, W.P. Kuala Lumpur, Johor, Sarawak, Pulau Pinang and Sabah remained as the major contributors to the national economy, contributing 72.1 per cent (2019: 72.3%) to Malaysia's GDP.

 

Chart 2: Economic growth by state and economic activity, 2020

                                                   *Includes W.P. Putrajaya

 

Based on the overall performance of 2020, several states contributed to the decline of main sectors. The Services sector, which contributed 57.7 per cent to the Malaysia’s economy, recorded a negative 5.5 per cent (2019: 6.2%). States with large contributions in the tourism-related industries were more affected due to travel restrictions as well as border closure policies which has led to the reduction in foreign tourist arrivals as well as interstate domestic tourists. Among the states that contributed to the decline in this sector were Selangor (-6.8%, 2019: 7.0%), W.P. Kuala Lumpur (-6.0%, 2019: 6.2%), Sabah (-7.4%, 2019: 5.4%), Pahang (-8.7%, 2019: 6.2%) and Johor (-3.4%, 2019: 6.5%).

The Manufacturing sector, which contributed 22.9 per cent to the economy, recorded a negative growth of 2.6 per cent, affected by a downward performance in refined petroleum, chemicals and chemical products, non-metallic mineral products, basic metal, fabricated metal and motor vehicles & transport equipment. Sarawak contracted 8.6 per cent as compared to positive growth of 2.9 per cent in the previous year, while Johor declined to a negative 3.7 per cent (2019: 4.7%), Melaka (-8.5%, 2019: 2.5%), Terengganu (-9.4%, 2019:0.3%) and Selangor (-0.6%, 2019: 5.3%).

Agriculture sector, which contributed 7.4 per cent to the Malaysia’s economy, recorded a negative 2.2 per cent (2019: 2.0%) largely influenced by a decrease in production of oil palm, rubber and logging. The states that contributed to the contraction in this sector were Sarawak (-10.0%,2019: -0.2%), Sabah (-6.6%, 2019: -0.8%), Negeri Sembilan (-6.6%, 2019: 7.0%) and Kedah (-1.8%, 2019: 3.3%).

Meanwhile, the Construction sector which recorded a double-digit decline of 19.4 per cent were due to a performance of W.P. Kuala Lumpur (-26.7, 2019: 5.9%), Johor (-37.7%, 2019: -27.3%), Selangor (-9.7%, 2019: 10.8%), Perak (-17.4%, 2019: 6.6%) and Pulau Pinang
(-15,5%, 2019: 0.9%).

The Mining & quarrying sector also experienced a double-digit contraction to 10.6 per cent, dragged down by the decline in crude petroleum and natural gas in Sabah (-13.5%, 2019: -5.3%) and Sarawak (-5.9%; 2019: 1.3%).

 

Chart 3: Economic structure by state and economic activity, 2020

 

Johor recorded a negative growth of 4.6 per cent in 2020 as compared to 2.8 per cent in the preceding year. The economic structure of Johor was shaped by the Services sector with 51.8 per cent, followed by the Manufacturing with 30.2 per cent, Agriculture 13.2 per cent, Construction 3.3 per cent and subsequently Mining & quarrying sector 0.5 per cent (Chart 3). Services sector fell to a negative 3.4 per cent (2019: 6.5%) due to the performance of wholesale & retail trade, accommodation, food & beverage sub sectors (-9.1%, 2019: 6.9%), as well as the finance, insurance, real estate and business services sub sectors (-3.7%, 2019: 6.2%). However, a robust growth in the utility sub sector has mitigated the impact of the decline in the Services sector. The Manufacturing sector decelerated to 3.7 per cent (2019: 4.7%) attributed by a downward performance in electrical, electronic, and optical products (-3.0%, 2019: 4.5%), as well as non-metallic mineral, basic metal and fabricated metal products (-13.9%, 2019: 4.4%). The contraction in Manufacturing sector was offset by the increase in petroleum, chemical, rubber and plastic products (3.6%, 2019: 5.8%). All sectors in Johor showed a decline except for the Agriculture sectors which increased to 3.1 per cent as against 1.0 per cent in the preceding year. This was contributed by the crop sub sector mainly in oil palm, vegetable and fruit activities.

Kedah posted a negative growth of 1.7 per cent in 2020 as compared to 4.6 per cent in the previous year. Services sector declined by 3.6 per cent (2019: 4.9%) influenced by wholesale & retail trade, accommodation and food & beverage subsectors (-9.6%, 2019: 6.0%). Despite a contraction in the transportation and storage, a significant contribution of government services sub sector weighed up the downward momentum of this sector. Manufacturing sector grew to 1.4 per cent (2019: 4.7%), supported by the increase in electrical, electronic & optical products (2.0%, 2019: 6.9%) and petroleum, chemical, rubber and plastic products (11.2%, 2019: 4.7% ). In addition, the Agriculture sector declined at 1.8 per cent (2019: 3.3%) attributed to a negative performance in the crops and fisheries sub sectors.

Kelantan decreased to 1.1 per cent as compared to 5.6 per cent in the previous year. Kelantan's economic structure was dominated by the Services sector with a share of 68.9 per cent while Agriculture contributed 23.1 per cent. The Services sector declined 1.0 per cent (2019: 4.9%) largely due to a performance of wholesale & retail trade, accommodation and food & beverage sub sectors (-8.0%, 2019: 6.6%) and a double-digit decline in the real estate and business services sub sectors. However, the Government services sub sector which contributed 36.5 per cent of the Services sector in Kelantan improved to 4.0 per cent as compared to 3.1 per cent in 2019 and thus mitigated the overall decline in this sector. Agriculture sector posted a marginal increase of 0.2 per cent as compared to 7.1 per cent in 2019 which was supported by the oil palm, vegetable and fruit sub sector. The Construction sector also recorded a growth of 3.5 per cent (2019: 18.1%) underpinned by a double-digit increase in the value of construction work in the Civil Engineering sub sector of 24.0 per cent (2019: 19.0%), while residential buildings recorded a decrease of 14.1 per cent.

Melaka contracted at a negative 5.9 per cent (2019: 2.9%) influenced by the Services, Manufacturing and Agriculture sectors. The Services sector declined to 4.6 per cent as compared to 6.0 per cent in the previous year resulted from the performance of wholesale & retail trade, accommodation and food & beverage sub sectors with a negative 9.1 per cent (2019: 7.1%), as well as the contraction in the utilities sub sector. The Manufacturing sector decreased to 8.5 per cent (2019: 2.5%) owing to the performance of petroleum, chemical, rubber and plastic products. However, the Agriculture sector rebounded to 3.7 per cent (2019: -2.9%) spearheaded by vegetable and livestock sub sectors.

Negeri Sembilan subdued to 3.6 per cent as compared to 5.1 per cent in the previous year, attributed to the Services and Manufacturing sectors. The Services sector declined to a negative 1.1 per cent (2019: 8.6%) reflected by the negative performance of wholesale & retail trade, accommodation and food & beverage sub sectors (-9.1%, 2019: 6.3%). However, a double-digit growth recorded by the utility sub sector has cushioned the shortfall in this sector. Manufacturing sector contracted at 4.9 per cent (2019: 2.5%) primarily due to a performance of non-metallic mineral products, basic metals and fabricated metal products (-13.2%, 2019: 3.9%), as well as petroleum, chemical, rubber and plastic products (-3.7%, 2019: 2.4%). Meanwhile, the Agriculture sector recorded a negative of 6.6 per cent (2019: 7.0%) following a decline in oil palm and rubber production.

Pahang decelerated to a negative of 5.9 per cent as compared to 3.8 per cent in the previous year. Services sector declined at 8.7 per cent (2019: 6.2%) affected by the wholesale & retail trade, accommodation and food & beverage sub sectors (-9.7%, 2019: 7.2%). The deterioration was also affected by the other private services sub sector, mainly in recreation activity. Manufacturing sector decreased to 4.0 per cent (2019: 4.7%) attributed by a lower growth in petroleum, chemical, rubber and plastic products (-2.6%, 2019: 4.0%). On the contrary, the Agriculture sector grew at 1.6 per cent (2019: 3.5%) supported by the crops of vegetables and fruits segment, as well as the forestry and logging sub sector. As for the Construction sector, although there was negative growth for the civil engineering sub sector, this segment recorded better growth from negative 31.3 per cent to negative 1.8 per cent in 2020 and in turn mitigated the downward momentum of the Construction sector in Pahang.

 

Pulau Pinang recorded a negative of 2.1 per cent in 2020 as compared to 3.8 per cent in the previous year. This decrease was influenced by the Services sector which recorded a negative 5.7 per cent (2019: 5.5%). Wholesale & retail trade, accommodation and food & beverages were the main contributors to the decline. In addition, the growth of this sector was also influenced by a contraction in transport & storage, real estate and business services. On the other hand, higher growth in electrical, electronics & optical products in 2020 supported the performance of the Manufacturing sector with an increase of 2.8 per cent (2019: 2.7%). The positive growth in the Manufacturing sector has cushioned the impact of the economic downturn in Pulau Pinang.

Perak registered a contraction of 2.3 per cent as compared to 4.1 per cent in 2019. The Services sector which was affected by the utilities, transportation & storage and information & communication sub sector declined 5.5 per cent (2019: 2.1%). However, utility sub sector was the main contributor to the decreasing trend of this sector. Manufacturing sector remained stable at 3.5 per cent backed by electrical, electronics & optical products and a robust performance in rubber products. In addition, Agriculture sector rose to 1.4 per cent (2019: 2.9%) supported by the performance of the vegetables, livestock and fisheries sub sectors.

Perlis declined to 6.1 per cent as compared to 4.5 per cent in the previous year. The Services sector recorded negative growth of 1.2 per cent (2019: 5.0%) owing to the performance of wholesale & retail trade, accommodation and food & beverage sub sector (-8.2%, 2019: 6.1%) and utility. However, favourable growth in the information & communication and finance & insurance sub sectors has offset the shortfall in the Services sector. The Agriculture sector declined double-digit to 18.5 per cent (2019: 5.9%) due to the decrease in marine fisheries sub sector.

Selangor decelerated to 5.3 per cent as compared to 6.8 per cent in 2019. Selangor's economic structure which propelled by the Services sector has declined to 6.8 per cent (2019: 7.0%) due to a negative performance in wholesale & retail trade, accommodation and food & beverages (-9.3%, 2019: 8.2%). However, utilities and information & communication sub sectors sustained a positive momentum. At the same time, the Manufacturing sector recorded a marginal contraction of 0.6 per cent (2019: 5.3%), attributed to a decline in chemicals & chemical products and motor vehicles & transport equipment. Nevertheless, the encouraging growth of rubber products and the gradual increase in electrical, electronic and optical products has mitigated the decline in the Manufacturing sector in Selangor. Apart from that, the Construction sector also contributed to the contraction in Selangor's economy by registering a negative 9.7 per cent (2019: 10.8%), influenced by the shortfall in the buildings and civil engineering sub sectors. On the contrary, the Agriculture sector recorded a growth of 0.3 per cent as compared to 3.9 per cent in the previous year, supported mainly by an increase in the crops and livestock sub sector.

Terengganu declined 5.7 per cent as compared to 3.3 per cent in 2019 affected by the Services and Manufacturing sectors. The Services sector registered a negative 3.4 per cent (2019: 5.6%) contributed by the utilities, transport & storage, and information & communications sub sector (-6.8%, 2019: 7.3%). However, the information & communication segment increased to 7.7 per cent as compared to the previous year (6.3%). Apart from that, the wholesale & retail trade sub sector (-5.2%, 2019: 6.3%) also contributed to the decline in the Services sector in Terengganu. Nevertheless, the Government services sub sector which contributed 29.0 per cent of the Services sector in Terengganu grew 3.7 per cent as compared to 3.1 per cent in 2019 and mitigated the negative impact in this sector. The Manufacturing sector contracted to 9.4 per cent (2019: 0.3%) influenced by petroleum, chemical, rubber and plastic products (-9.4, 2019: 0.2%).

The economic performance of Sabah dropped to 9.5 per cent as compared to 0.7 per cent in the previous year. The Services sector recorded a negative growth of 7.4 per cent over the previous year (5.4%) contributed by the decline in the wholesale & retail trade, accommodation and food & beverage sub sectors (-13.7%, 2019: 6.5%). In addition, the transport & storage subsector and real estate & business services sub sector also attributed to the decline in this sector. Mining and quarrying recorded double digit negative 13.5 per cent as compared to negative 5.3 per cent in the preceding year. The deterioration was mainly due to the lower production in crude petroleum and natural gas extraction activities. As for the Agriculture sector, the reduction in the crops sub sector, especially in the production of oil palm commodities and the double digit decline in the forestry & logging sub sector have contributed to the negative growth of the Agriculture to negative 6.6 per cent as compared to negative 0.8 per cent in preceding year.

Sarawak descended to 7.1 per cent as against to 2.8 per cent recorded in 2019. The contraction of 5.6 per cent in the Services sector (2019: 5.3%) was influenced by the wholesale & retail trade, accommodation and food & beverage (9.2%, 2019: 6.5%), as well as utilities and transportation & storage sub sectors. At the same time, Manufacturing sector contracted 8.6 per cent (2019: 2.9%) contributed by the negative performance of refined petroleum, chemical, rubber and plastic products (-8.9%, 2019: 3.0%) and the decline in vegetable and animal oils & fats, as well as wood products. Meanwhile, Mining and quarrying sector also recorded a decline of 5.9 per cent (2019: 1.3%) due to a shortfall in crude oil production. The Agriculture sector reduced to 10.0 per cent due to the contraction in the production of oil palm and other crops, as well as the forestry & logging sub sector.

W.P. Kuala Lumpur decelerated to 7.5 per cent (2019: 6.1%) contributed by the Services sector. The Services sector contracted to a negative 6.0 per cent (2019: 6.2%) driven by the wholesale & retail trade, accommodation and food & beverage sub sectors (-9.6%, 2019: 7.3%). Apart from these, the finance, insurance, real estate, and business services sub sector (-5.7%, 2019: 5.6%) also contributed to the decline in the services sector in W.P. Kuala Lumpur. However, there was an increase in the utilities as well as information & communication sub sectors. In addition, the Construction sector also reduced to 26.7 per cent (2019: 5.9%) influenced by the buildings and civil engineering sub sectors.

W.P. Labuan recorded a marginal decline of 0.5 per cent (2019: 5.3%) driven by the Services and Manufacturing sectors. The Services sector continued to expand but grew at a slower pace of 0.1 per cent (2019: 7.6%) driven by the finance & insurance sub sector which was the largest contributor to this sector at 67.5 per cent. The information & communication and utility sub sector grew better than the previous year. The Manufacturing sector contracted at a negative rate of 1.2 per cent (2019: 1.4%) influenced by chemicals and chemical products.

 

GDP PER CAPITA 

In terms of GDP Per Capita, all thirteen states and two Federal Territories recorded a decline in the value of GDP Per Capita compared to 2019. However, seven states surpassed national GDP per capita value (RM43,475) namely W.P. Kuala Lumpur (RM121,100), W.P. Labuan (RM76,898), Pulau Pinang (RM54,818), Selangor (RM52,073), Sarawak (RM48,657), Melaka (RM45,936) and Negeri Sembilan (RM43,926).

 

Table 1: GDP per capita (RM) by state, 2020

 *Notes: Value in W.P. Kuala Lumpur included W.P. Putrajaya
**The GDP per capita by state in 2020 has been revised based on the Current Population Estimates 2020, which was published on 15th July 2021

 

Details of these statistics can be accessed and downloaded for free through the statistics application on the DOSM website, www.dosm.gov.my.

State GDP Table 2015-2020

 

Released By:

DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
 DrUzir_Mahidin    Dr_Uzir

29 June 2021

 

Contact person:

Mohd Yusrizal Ab. Razak 
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Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
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