Chief Statistician of the Department of Statistics Malaysia, Datuk Seri Mohd Uzir Mahidin, said the private sector continued to be the main driver with a contribution of 77.6%, registering an expansion of 2.6% compared to the previous year. — Photo by Shafwan Zaidon
Monday, July 25, 2022 1:30 p.m. MYT
KUALA LUMPUR, July 25 – Malaysia’s gross fixed capital formation (GFCF), the second largest component of gross domestic product (GDP) with a 20.1% share in the total economy, contracted by 0.9% to RM278.7 billion in 2021 from RM281.2 billion in 2020.
Department of Statistics Malaysia (DOSM) chief statistician Datuk Seri Mohd Uzir Mahidin said the contraction was, however, significantly lower than the 14.4% contraction in 2020.
“The gradual recovery in GFCF has encouraged higher economic capacity, thereby increasing long-term potential output,” it said in a statement today.
He said that GFCF in 2021 for all sectors recorded negative growth except for the manufacturing sector.
“The favorable performance of this sector was supported by petroleum, chemical, rubber and plastic products as well as transport equipment for electrical, electronic and optical products, which rebounded 9.7% and 5.9%, respectively,” he said. said that GFCF in the services sector decreased by 1.3% against 12.4% the previous year, influenced by finance, insurance, real estate and business services activities, which deteriorated by 4.6% in 2021.
“GFCF for the mining and quarrying sector fell by 14.7% in 2021 compared to a drop of 25.7% the previous year, while the construction sector also fell by 1.1%, more slowly. than the 2.6% decline in 2020,” he said.
Mohd Uzir said a similar downward trend was also seen in the agricultural sector, which contracted slightly by 0.7% from a negative 8.9% in 2020, attributed to sluggish performance. in all subsectors.
By type of asset performance, he said that structure remained the main contributor to GFCF with a share of 50.7%, which decreased by 10.1% in 2021 compared to the previous year.
He said ICT equipment and other machinery and equipment soared 16.6% while intellectual property products grew 2.9% in 2021.
Furthermore, he said that the private sector continued to be the main driver with a contribution of 77.6%, registering an expansion of 2.6% compared to the previous year.
“Nevertheless, the public sector, which accounted for 22.4%, showed a downward trend of 11.3% in 2021,” he said, adding that services and manufacturing activities were the main contributors to private sector GFCF.
He said the share of service business increased to 63% from 62.9% in 2020.
“In addition, manufacturing activity maintains its position as the second largest contributor with a share of 22.2% against 21% the previous year.
“Meanwhile, other activities contributed 14.8 percent to total private sector GFCF,” he said.
He said public sector GFCF was dominated by services activity with a contribution of 81.5%, followed by manufacturing and mining and quarrying activities with contributions of 9.1% and 8 .6%, respectively.
“The ease of movement across the state has had a significant impact on economic openness, enabling entrepreneurs to regain business momentum and drive the process of economic recovery in Malaysia,” he said. declared.
He added that continued growth in capital investment related to machinery and equipment signals the trend of GFCF recovery in 2022. — Bernama