ECONOMIC PERFORMANCE BY STATE, 2021

The economic distress that shook Malaysia in 2020 appears to be winding down as the country embarks into 2021. The government’s effective response to the global crisis has paved the way for a swift economic recovery. The comprehensive vaccination rollout program at the beginning of 2021, among others, has led to the easing of containment measures and the resumption of economic activities. Other noteworthy approaches include various economic stimulus packages from the federal and state governments, the National Recovery Plan to safely exit the COVID-19 pandemic and the International Langkawi Travel Bubble. Malaysia's economy rebounded in 2021, picking up 3.1 per cent from the previous year’s negative 5.5 per cent (Chart 1), owing to the government’s efforts. The Manufacturing sector accelerated by 9.5 per cent (2020: -2.7%), followed by the Services sector by 1.9 per cent (2020: -5.4%) and the Mining & quarrying sector by 0.3 per cent (2020: -9.7%). The Agriculture and Construction sectors, on the other hand, declined by 0.2 per cent (2020: -2.4%) and 5.2 per cent (2020: -19.3%), respectively. In the same manner, all states began to recover from the Global COVID-19 Crisis and reported improved performance in 2021.

Chart 1 : National GDP, 2005-2021

The Services sector, which accounted for 57.0 per cent (Chart 2) of Malaysia’s economy, rebounded by 1.9 per cent in 2021 after declining by 5.4 per cent the previous year. States with significant contributions in the wholesale & retail trade, finance & insurance, information & communication and government services subsectors are the driving force of this sector’s growth. W.P. Kuala Lumpur and Selangor remained the major contributors with economic growth of 1.6 per cent (2020: -5.8%) and 2.2 per cent (2020: -6.6%), respectively.

The Manufacturing sector, which contributes 24.3 per cent to the national GDP, accelerated by 9.5 per cent from a negative 2.7 per cent in 2020. Rapid expansion in the Manufacturing sector was aided by double-digit growth in major subsectors, primarily electrical, electronic and optical products at 14.6 per cent (2020: 2.6%) and petroleum, chemical, rubber and plastic products at 12.9 per cent (2020: -1.0%). The surge in demand for semiconductor chips in recent years has fueled the double-digit growth, particularly in Selangor (13.1%) and Pulau Pinang (12.4%).

Chart 2: Economic structure by state and economic activity, 2021

Malaysia’s Mining & quarrying sector grew by 0.3% (2020: -9.7%), fueled by the natural gas subsector, which constituted 52.5% of the sector. This subsector rose by 6.6 per cent compared to a drop of 9.4 per cent in 2020, driven by a surge in the natural gas production, primarily in Sabah.

The Agriculture sector recorded a better performance of a negative 0.2 per cent, compared to a dip of negative 2.4 per cent in 2020. The downturn was mainly attributable to the crops subsector, which declined 1.1 per cent (2020: -1.4%). The states that were responsible for the contraction in this sector were Perlis, with a growth of negative 6.0 per cent, followed by Terengganu (-5.3%), Sarawak (-3.2%), Sabah (-2.4%), Negeri Sembilan (-0.4%) and Pahang (-0.1%).

The Construction sector improved by recording a negative 5.2 per cent after suffering a double digit decline the previous year. The contraction was influenced by negative growth recorded in all segments apart from the special trade segment. Albeit the negative growth in the Construction sector, most states are showing signs of revival. This performance is underpinned by Selangor (-6.6%, 2020: -9.7%), W.P. Kuala Lumpur (-12.1%, 2020: -26.4%) and Sarawak (10.2%, 2020: -8.8%).

Chart 3: Economic growth by state and economic activity, 2021

In 2021, Johor recorded a value added of RM131.1 billion (2020: RM128.0 billion), a 2.4 per cent increase over the previous year's 4.7 per cent drop (Chart 3). The Services sector expanded by 2.6 per cent (2020: -3.3%) due to gains in the wholesale & retail trade, utilities, information & communication and finance & insurance subsectors. Similarly, the Manufacturing sector grew by 5.5 per cent, with increases in electrical, electronic & optical products as well as chemical & chemical products. Meanwhile, the Agriculture sector moderated by 0.6 per cent (2020: 2.8%) due to the decline in the oil palm activity. However, the sector's expansion is buoyed by the double-digit increase in vegetable production. The Construction sector, on the other hand, fell by 18.0 per cent (2020: -37.7%).

Kedah recorded a value added of RM47.5 billion (2020: RM46.0 billion) in 2021, a boost of 3.2 per cent compared to a decrease of 1.8 per cent in the previous year, thus surpassing the national growth of 3.1 per cent. The Services sector advanced by 1.9% (2020: -3.5%), aided by the wholesale and retail trade and government services subsectors. The Manufacturing sector, which is among the most significant activities in Kedah, grew by 6.2 per cent, outpacing the previous year’s 1.4 per cent, primarily due to increases in electrical, electronic & optical products, rubber products and fabricated metal products activities. Meanwhile, the Agriculture sector soared by 2.6 per cent, owing to increases in the crops, livestock and fisheries subsectors.

Kelantan's economy expanded by 2.4 per cent (2020: -1.2%), with a value added of RM25.8 billion, compared to RM25.2 billion in 2020. The Services sector expanded by 2.7 per cent (2020: -1.0%), aided wholesale & retail trade and government subsectors. The Agriculture sector grew by 1.0 per cent, up from 0.1 per cent in 2020, supported by rises in crops, particularly vegetable and fruit. The Manufacturing sector grew by 2.1 per cent compared to a 5.1 per cent decline the previous year, attributed to increases in electrical, electronic & optical products, chemical & chemical products, as well as double-digit growth in wood products.

Melaka’s GDP rose by 2.0 per cent, to reach RM41.8 billion, from RM41.0 billion the previous year. The Services sector increased by 2.3 per cent compared to a decline of 4.6 per cent in 2020. Among the major contributors to the growth were the wholesale & retail trade, utilities, and information & communication subsectors. The Manufacturing sector climbed by 3.3% (2020: -8.5%), driven by petroleum, chemical, rubber, and plastic products and electrical, electronic & optical products. In contrary, the Agriculture sector fell by 0.6 per cent (2020: 3.4%), influenced by the vegetable crops subsector.

Negeri Sembilan posted a value added of RM47.7 billion (2020: RM46.3 billion), a 3.0 per cent increase from the previous year's decline of 3.6 per cent, driven by the Services and Manufacturing sectors. The Services sector grew by 2.0 per cent (2020: -1.0%), led by the wholesale & retail trade, utilities and information & communication subsectors. The Manufacturing sector jumped by 7.2 per cent (2020: -4.9%), owing to strong growth in the electrical, electronic & optical products and refined petroleum products.

Pahang's economy was valued at RM55.4 billion in 2021, up from RM 54.9 billion the previous year, depicting a 0.9 per cent growth (2020: -6.1%). Pahang, the only state to experience negative growth in the Services sector, declined by 1.4 percent (2020: -8.8 per cent), owing to the tourism-related subsectors including other services, food & beverages and accommodation subsectors. The Agriculture sector declined by 0.1 per cent (2020: 1.2%), influenced by oil palm, forestry & logging activity. The Manufacturing sector expanded by 6.1 per cent (2020: -4.1%), driven by the chemicals, chemical products and pharmaceutical products subsector. The Construction sector accelerated by 18.5 per cent (2020: -21.7%), fueled by solid growth in civil engineering and building subsectors.

Pulau Pinang's value added reached RM99.0 billion (2020: RM92.7 billion), a rebound of 6.8 per cent from a negative 2.1 per cent in 2020. The Services sector grew by 2.1 per cent (2020: -5.6%), driven by the wholesale & retail trade, finance & insurance and information & communication subsectors. However, the decline in the food & beverages, accommodation, real estate and business services subsectors has diminished the sector's upward momentum. The Manufacturing sector grew by 12.4 per cent (2020: 2.8%), supported by electrical, electronic, and optical products subsector. The Construction sector grew by 12.9 per cent, compared to a decline of 15.5 per cent the previous year, supported by the non-residential building subsector.

The economy of Perak surged by 3.5 per cent after contracting 2.4 per cent the previous year. The Services sector rose by 2.4 per cent (2020: -4.0%), led by the utilities, wholesale & retail trade and information & communication subsectors. The Manufacturing sector recorded solid growth of 9.2 per cent (2020: 3.5%), backed by the electrical, electronic and optical products subsector. Likewise, the Agriculture sector grew by 3.1 per cent, up from 1.0 per cent in the previous year, supported by increases in oil palm, vegetable, fruits crop and livestock activities.

The GDP of Perlis expanded by 1.5 per cent in 2021 (2020: -6.0%), registering a value added of RM5.9 billion compared to RM5.8 billion in the previous year. The Services sector increased by 2.3 per cent (2020: -1.2%), supported by the government services and wholesale & retail trade subsector. The Agriculture sector fell by 6.0 per cent (2020: -18.5%), influenced by the decline in the crops and fisheries subsectors. The Manufacturing sector grew by 5.4 per cent (2020: -5.6%), driven by positive growth in food processing and non-metallic mineral products.

Selangor showed signs of revival in 2021, growing 5.0 per cent from a negative 5.2 per cent in the previous year. Selangor remained the largest economy in Malaysia, with a value added of RM343.5 billion (2020: RM327.1 billion). The Services sector grew by 2.2 per cent (2020:-6.6%), fuelled by the wholesale & retail trade, finance & insurance, transportation & storage and information & communication subsectors. The Manufacturing sector flourished by 13.1 per cent (2020: -0.7%), aided by electrical, electronic & optical products and petroleum, chemical, rubber & plastic products. The Agriculture sector expanded 4.9 per cent (2020: 0.3%), led by the crops, livestock and fisheries subsectors. On the other hand, the Construction sector shrank by 6.6 per cent (2020: -9.7%), owing to a drop in the civil engineering and building subsectors.

Terengganu recorded RM35.2 billion in value added, a 3.6 per cent uptick from a negative 5.7 per cent in 2020. The Services sector grew by 1.2 per cent (2020: -3.4%), buoyed by the wholesale & retail trade, information & communication and government services subsectors. Next, the Manufacturing sector improved by 9.5 per cent from a negative 9.4 per cent in 2020, aided the petroleum, chemical, rubber & plastic products subsector. However, the Agriculture sector in Terengganu dropped by 5.3 per cent (2020: -3.7%), due to the decline in the crops subsector.

In 2021, Sabah’s GDP rose by 1.1 per cent compared to a contraction of 9.2 per cent in the previous year, to record a value added of RM78.7 billion (2020: RM77.8 billion). The Services sector expanded by 1.8 per cent (2020: -7.3%), led by the wholesale & retail trade, information & communication and utilities subsectors. The Mining & quarrying sector surged by 2.4 per (2020: -12.3%), supported by a spike in natural gas activity. The Construction sector climbed by 7.9 per cent (2020: -29.1%), fuelled by the civil engineering subsector. On the contrary, the Agriculture sector fell by 2.4 per cent (2020: -6.7%), owing to a contraction in the crop subsector, primarily oil palm activity.

Sarawak's GDP grew by 2.9 per cent (2020: -6.8%) with an economic value of RM131.2 billion (2020: RM127.5 billion). The Services sector expanded by 2.1 per cent (2020: -5.5%), led by the wholesale & retail trade, information & communication and utilities subsectors. The Manufacturing sector rose by 11.2 per cent (2020: -8.6%), driven by the petroleum, chemical, rubber and plastics products subsector. However, the Mining and Quarrying sector fell by 3.3 per cent (2020: -4.7%) following declines in natural gas, crude oil and condensate production. Similarly, the Agriculture sector dropped by 3.2 per cent (2020: -10.1%) due to lower oil palm and other crops as well as the forestry & logging production.

W.P. Kuala Lumpur remained the second-largest economy, with an RM218.2 billion value added and a 0.8 per cent growth (2020: -7.4%). The Services sector expanded by 1.6 per cent (2020: -5.8%), underpinned by the wholesale & retail trade, finance & insurance and information & communication subsectors. Meanwhile, the Manufacturing sector rose by 4.3 per cent (2020: -6.3%), buoyed by the electrical, electronic & optical products and oils and fats from vegetables & animals and food processing subsectors. In contrast, the Construction sector dropped by 12.1 per cent, largely due to the decline in building and civil engineering subsectors.

W.P. Labuan recorded a marginal growth of 0.5% compared to a negative 0.4% in the previous year, recording a value added of RM7.6 billion. This performance is supported by moderate growth in the finance & insurance and wholesale & retail trade subsectors. The Manufacturing sector contracted by 1.0% (2020: -1.2%), influenced by the chemical and chemical products subsector.

GDP PER CAPITA 

In terms of GDP per capita, all states experienced growth in comparison to the previous year. Malaysia's GDP per capita increased by RM3,737 from RM43,702 in 2020 to RM47,439 in 2021 (Table 1).

Five states surpassed the national level: W.P. Kuala Lumpur (RM111,292), W.P. Labuan (RM81,345), Sarawak (RM65,971), Pulau Pinang (RM59,685) and Selangor (RM51,930).

Table 1: GDP per capita (RM) by state, 2020-2021

Notes:
1.*Includes W.P. Putrajaya.
2. The GDP per capita by state in 2020-2021 has been revised based on the Current Population Estimates 2022, which was published on 29th July 2022.
 

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

Released by:

THE OFFICE OF CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA

30 June 2022

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