KUALA LUMPUR: Malaysia's gross fixed capital formation (GFCF) was recorded at RM314.5 billion at constant prices in 2023 versus RM298.2 billion in 2022, said the Statistics Department Malaysia (DoSM).

In a statement today, DoSM said the combination of global economic pressures, domestic policy adjustments, sector-specific challenges and financial conditions significantly contributed to the GFCF’s moderate growth last year.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the GFCF remained the second largest component of the gross domestic product (GDP) with a 20.1 per cent share of the total economy.

"GFCF grew by 5.5 per cent in 2023 compared to 6.8 per cent in 2022. All major activities showed an improvement in 2023, especially investment in fixed assets in the services and manufacturing activities,” he added.

The GFCF for services rose by 6.1 per cent, contributed by growth in wholesale and retail trade; transportation and storage; information and communication, finance, insurance, real estate and business services sub-activities.

The growth in fixed asset acquisition in manufacturing moderated by 5.5 per cent (2022:10 per cent).

DoSM said the moderate growth was influenced by food, beverages and tobacco at 8.9 per cent (2022: 14.7 per cent), electrical, electronic and optical products and transport equipment at 6.8 per cent (2022: 9.3 per cent) and petroleum, chemical, rubber and plastic products at 4.5 per cent (2022: 8.7 per cent).

The private sector remained the main contributor to the GFCF at 77.2 per cent; it grew by 4.6 per cent versus 7.2 per cent in 2022.

The public sector's 22.8 per cent share of the GFCF rose by 8.6 per cent versus 5.3 per cent in 2022.

"Service activities contributed 63.9 per cent (2022: 63.6 per cent) to the GFCF in the private sector, followed by manufacturing activities, at 23.0 per cent. Other activities accounted for 13.1 per cent of the total GFCF, the statement said.

DoSM said the public sector’s GFCF was also led by services, with an 80.5 per cent contribution, followed by mining and quarrying (9.9 per cent) and manufacturing (8.8 per cent).

Indonesia and Singapore recorded modest performance in GFCF at 7.6 per cent and 4.9 per cent respectively, DoSM said.

 - Bernama