Services sector revenue hits RM618.5 billion in 3Q, up 5.9% YoY

KUALA LUMPUR: Services sector revenue in Malaysia grew by 5.9% year-on-year (y-o-y) in the third quarter of 2024 (3Q 2024), reaching RM618.5 billion, according to the Department of Statistics Malaysia (DOSM).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin attributed the strong performance to growth in the wholesale and retail trade, food and beverage, and accommodation sectors, which together saw a 5.1% increase y-o-y.

“This growth reflects rising numbers of international and domestic tourists, which in turn have fuelled consumer spending and heightened demand across these essential industries, reinforcing tourism’s key role in sustaining the sector’s performance,” he said in a statement.

Mohd Uzir said the professional, real estate, and administrative and support services sectors also made a significant contribution, growing by 11.2% y-o-y, with total revenue reaching RM40.7 billion.

Further supporting this growth, real estate-related activities displayed notable momentum, with loans disbursed for residential purposes rising by 7.7% y-o-y, and the value of work done in residential construction increasing by 27.8%.

The information, communication, and transportation segment saw a 6.1% expansion, driven by a substantial 14.1% increase in air passenger traffic.

Meanwhile, the private healthcare, private education, arts, entertainment and recreation, and other personal services segments posted strong growth of 12.2%, reflecting heightened demand for personal and recreational services.

On a quarterly basis, total revenue for the services sector increased by 1.9% compared with the second quarter of 2024 (2Q 2024), mainly driven by the wholesale and retail trade, food and beverage, and accommodation sectors, which contributed an additional RM8.1 billion.

E-commerce income for the quarter reached RM300.5 billion, a 3.8% y-o-y increase, largely due to a 4.3% rise in the manufacturing sector.

Mohd Uzir also reported that the number of persons employed in the services sector increased by 1.7% y-o-y to 4.5 million, while total salaries and wages rose by 3.8% to RM33.0 billion.