Malaysia's services sector grew 6.0 percent year-on-year in the first quarter of 2025, reaching RM630 billion in revenue, according to the Department of Statistics Malaysia (DoSM).
Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth was supported by positive performance across all segments of the services sector such as wholesale and retail trade, food and beverages, as well as the accommodation segment which recorded an increase of RM24.2 billion or 5.3 percent, reaching RM475.7 billion.
He added that the robust development was driven by higher consumer spending and an increase in domestic travel, boosted by seasonal events such as the Chinese New Year celebrations, Ramadan and Aidilfitri preparations, as well as the reopening of the school year.
In addition, a 31.3 percent year-on-year increase in international arrivals, reaching 6.7 million in the first two months of the year, further boosted this growth.
Mohd Uzir said the services sector’s performance was further supported by significant growth in the information and communication and transportation and storage segments, which expanded by 5.9 percent year-on-year to RM87.9 billion in the first quarter.
He said the information and communication sub-sector recorded a growth of 3.3 percent, driven mainly by telecommunications activities, which increased by 3.8 percent and contributed 63.5 percent to the total value of the sub-sector.
Meanwhile, total salaries and wages increased by 4.1 percent year-on-year to RM33.6 billion. The increase was contributed by the wholesale and retail trade and transportation and storage sub-sectors which grew by 3.9 percent and 4.8 percent respectively.
In conclusion, Malaysia’s progress towards a high-value knowledge-based economy continues to be supported by the services sector, which remains the main driver of the country’s growth.
