MALAYSIA’s services sector achieved a record-breaking revenue of RM2.4 trillion in 2024, marking a 6.3% increase compared to RM2.3 trillion in 2023, according to the latest report from the Department of Statistics Malaysia (DOSM).
Chief Statistician Datuk Seri Dr. Mohd Uzir Mahidin attributed the sector's robust performance to the continued recovery of tourism-related industries, which were bolstered by a notable influx of 25 million international tourists and a surge in domestic travel activities.
Key contributors to the services sector’s growth included the wholesale and retail trade, food and beverage (F&B) services, and accommodation segments. These areas were supported by sustained consumer demand and rising travel activity, which had a positive impact on various businesses in these sectors.
The fourth quarter of 2024 (4Q 2024) saw the services sector grow by 6.2%, reaching RM627.9 billion. This growth was driven by strong performance across all sub-sectors, particularly the wholesale and retail trade, F&B, and accommodation industries, which collectively saw an increase of RM24.3 billion, or 5.4%, to total RM475.2 billion.
The growth in the services sector was further fuelled by higher consumer spending, increased dining-out activities, and improved hotel occupancy rates. Additionally, international tourist arrivals grew by 17.0% year-on-year, contributing an additional 2.5 million tourists. This was further supported by the holiday season surge in domestic travel.
The information and communication, and transportation and storage sectors also played a significant role in the sector’s growth, with both segments registering a 6.5% increase year-on-year, amounting to RM87.2 billion in 4Q 2024.
Another standout performer was the professional, real estate, and administrative and support services segment, which grew by 10.8% year-on-year. This growth was primarily driven by heightened business activities in industries such as accounting, legal, architecture, and veterinary services.
E-commerce continued to be a major growth area, with total income from e-commerce reaching RM310.2 billion in 4Q 2024, a 3.7% year-on-year increase. This was largely due to a 7.7% rise in e-commerce services, which supported broader consumer activity. On a quarterly basis, e-commerce income saw a more modest increase of 0.8%.
In terms of salaries and wages, there was a 3.9% year-on-year increase, reaching RM33.3 billion in 4Q 2024. This growth was driven by the wholesale and retail trade and transportation and storage sectors, which saw respective increases of 3.7% and 4.9%. Compared to the previous quarter, salaries and wages grew by 0.9%.
Overall, the services sector’s strong performance in 2024 highlights the ongoing economic recovery, supported by higher consumer confidence, strong tourism figures, and the continued expansion of e-commerce. – February 12, 2024
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