GEORGE TOWN: Penang’s economy grew by 7.3% in 2025, with its gross domestic product (GDP) rising to RM130.3 billion from RM121.4 billion in the previous year, driven by the strong performance of the manufacturing and services sectors.
The Department of Statistics Malaysia (DoSM) said in a statement the manufacturing and services sectors continued to dominate the state’s economy, contributing a combined 94% to GDP, followed by the construction sector, which accounted for 3.3%.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the manufacturing sector contributed 47.3% to Penang’s GDP in 2025, with value-added amounting to RM61.7 billion, an increase of 10% compared with 4% growth in the previous year.
“Electrical, electronic, and optical products were the main drivers of the manufacturing sector’s 12.7% growth, supported by increases in the electronic components and boards, communications equipment, and consumer electronics segments.
“In addition, non-metallic mineral products, basic metals and fabricated metal products also supported the sector’s expansion, growing by 8.7% in 2025,“ he said in the statement.
Mohd Uzir said the services sector recorded a value-added of RM60.8 billion, up from RM58.4 billion in 2024, registering growth of 4.1%. The sector’s performance was driven by a 5.6% increase in the wholesale and retail trade, food and beverage, and accommodation subsectors, as well as 2.7% growth in the utilities, transport and storage, and information and communications technology subsectors.
The construction sector recorded a value-added of RM4.3 billion, compared with RM3.8 billion in the previous year, contributing 3.3% to the state’s GDP and expanding by 13.4%. This was driven by double-digit growth in the civil engineering and specialised construction activities subsectors.
The agriculture sector grew by 1.8% in 2025, compared with a contraction of 0.5% in 2024. This was supported by a 3.4% increase in the fisheries subsector, while the mining and quarrying sector expanded by 1.1% in 2025.
“In terms of GDP per capita, Penang recorded an increase of RM4,477, rising from RM76,107 to RM80,584, exceeding the national average of RM59,167,“ the chief statistician said.
