KUALA LUMPUR (June 26): Malaysia’s total services trade registered RM433.2 billion in 2023, representing 23.8% of gross domestic product (GDP) at current prices, said the Department of Statistics Malaysia (DOSM).

The deficit in services for 2023 improved to RM43.2 billion against a deficit of RM58.2 billion in 2022.

"Exports of services grew 37.9% to RM195 billion from RM141.4 billion in 2022, while imports of services rose 19.3% to RM238.2 billion from the preceding year," the DOSM said in a statement on Wednesday.

The DOSM said travel, the main contributor to the services trade, is still catching up to almost pre-pandemic highs.

"Travel in 2023 improved to a surplus of RM17.1 billion after recording a deficit for three consecutive years, strongly supported by higher foreign tourist spending in Malaysia," it said.

The DOSM said Singapore was the primary destination for Malaysia’s services export with a value of RM55.3 billion compared with RM37.5 billion in the previous year.

"The US ranked the second highest export destination with RM36.6 billion, followed by China with RM12.9 billion," it said.

In the meantime, the DOSM said the US became the main source for services import valued at RM76.1 billion in 2023, particularly in travel, other business services and transport.

"This was followed by Singapore with RM41.3 billion and the UK with RM13.3 billion," it said.

The DOSM said that overall, Malaysia’s services trade performance in 2023 demonstrated significant growth, in line with global trends.

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