KUALA LUMPUR: Malaysia’s Gross Fixed Capital Formation (GFCF) recorded double-digit growth of 12.0 per cent to RM352.3 billion in 2024, compared with RM314.5 billion in 2023, driven by strong foreign direct investment inflows and sustained domestic investment growth.
The Department of Statistics Malaysia (DOSM), chief statistician Datuk Seri Dr Mohd Uzir Mahidin, said all sectors experienced stronger capital formation in 2024, particularly the services and manufacturing sectors.
“Higher investment in fixed assets within the services sector was mainly propelled by the transportation and storage, as well as the information and communication, and finance, insurance, real estate and business services sub-sectors, which rose by 16.4 per cent and 13.6 per cent, respectively,” he said in a statement today.
Additionally, he said the manufacturing sector expanded by 11.8 per cent (2023: 5.4 per cent), led by stonger capital formation in the electrical, electronic and optical products and transport equipment (2024: 15.6 per cent; 2023: 6.5 per cent), followed by petroleum, chemical, rubber and plastic products sub-sectors (2024: 10.4 per cent; 2023: 4.5 per cent).
Mohd Uzir said the food, beverages and tobacco sub-sector also increased 10.1 per cent, while the mining and quarrying sector grew by 2.4 per cent, the agriculture sector by 3.1 per cent, and the construction sector by 4.6 per cent.
In terms of capital formation by asset type, structures remained the largest component, accounting for 51.5 per cent of the total GFCF (2023: 50.1 per cent), surging by 15.3 per cent compared with the previous year.
“Information and communication technology equipment and other machinery and equipment also recorded double-digit growth of 14.8 per cent, followed by intellectual property products, which grew by 3.1 per cent in 2024,” he added.
On GFCF by sector, he said the private sector continued to be the main contributor, with a share of 77.4 per cent, registering a 12.3 per cent growth as compared to the preceding year, while the public sector investment grew by 11.1 per cent, up from 8.5 per cent in 2023 (share: 22.6 per cent).
“The services and manufacturing activities continued to be the main drivers of private sector GFCF. The share of services activities rose to 65.7 per cent (2023: 64.1 per cent).
“Manufacturing activities maintained their position as the second largest contributor with a share of 22.6 per cent, while other activities accounted for 11.7 per cent of the private sector’s total GFCF,” said Mohd Uzir.
Meanwhile, he noted that public sector GFCF was also primarily driven by services activities, contributing 79.3 per cent, followed by mining and quarrying (10.2 per cent) and manufacturing (9.6 per cent).
GFCF remained the second largest component of gross domestic product (GDP), accounting for 21.3 per cent of the total economy. - Bernama
