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Malaysian services sector revenue in the first quarter increased 6% year-on-year to RM594.5 billion

PAID JAYA: Malaysia’s services sector revenues increased by 6.1% year-on-year to RM594.5 billion in the first quarter of 2024 (Q1 2024), the Department of Statistics Malaysia said in a statement today.

According to Malaysia’s Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin, “The 6.1% growth was driven by strong performance across all service sector segments. The wholesale and retail, food and beverage and accommodation segments saw an increase in importance, growing by RM23.3 billion to RM451.6 billion.

He added that it was followed by the Information & Communications and Transport & Warehousing segments (+RM5.2 billion; 6.7%), Professional Services, Real Estate and Administrative & Support Services segments (+RM3.3 billion; 9, 5%) and the private sector. health, private education, arts, entertainment and recreation and personal services and other business segment (+RM2.4 billion; 12.7%).

Quarter on quarter, total revenues of the services sector increased by 0.5% compared to Q4’23.

Growth was driven by the information and communications and transportation and warehousing segments, which grew by 1.4% (RM1.1 billion). This was followed by the Professional Services, Real Estate and Administration & Support segments (RM0.9 billion; 2.3%), Wholesale & Retail, Food & Beverage and Accommodation segment (RM0.7 billion; 0.2 %) and private healthcare, private education, arts, entertainment and recreation and personal services and other activities segment (RM0.5 billion; 2.3%).

The chief statistician reported that total e-commerce revenue was RM293.2 billion, up 0.5% year-on-year in the first quarter of 2024. On a quarter-on-quarter basis, e-commerce revenue also increased by 0.5%. .

Meanwhile, wages in the service sector recorded an increase of RM1 billion or 3.3% year-on-year. The growth was in the wholesale and retail trade and transportation and warehousing subsectors, which grew by RM0.4 billion (2.8%) and RM0.1 billion (5.3%), respectively. Comparatively, quarter-on-quarter, salaries increased by 0.8% to RM32.3 billion in the first quarter of 2024.

Meanwhile, the wholesale and retail trade volume index recorded a 3.7% year-on-year increase in the first quarter of 2024, reaching 152.8 points, Mohd Uzir said.

“Year-on-year growth of 3.7% was recorded in the motor vehicles subsector, which increased by 4.7% to 134.1 points. This was followed by retail and wholesale trade, which grew by 3.8% and 3.5% respectively. On the other hand, on a quarter-on-quarter basis, the volume index declined by -0.1% due to a decline of -1.7% in the motor vehicle sub-sector,” he added.

The annual growth in the retail subsector of 3.8% was mainly driven by sales of food, beverages and tobacco products (6.5%). Quarter-on-quarter, the retail trade volume index increased by 0.04%.

However, the wholesale trade volume index, which amounted to 3.5%, was mainly contributed by other specialized wholesale trade with a result of 7.2%.

“On a seasonally adjusted volume basis, wholesale and retail trade increased by 0.9% compared to the fourth quarter of 2023, supported by wholesale (1.5%) and retail (1.3%) trade,” Mohd said Uzir.