KUALA LUMPUR (July 24): 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 Wednesday, 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% share of the total economy.

“GFCF grew by 5.5% in 2023 compared with 6.8% 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%, 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% (2022:10%).

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

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

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

“Service activities contributed 63.9% (2022: 63.6%) to the GFCF in the private sector, followed by manufacturing activities, at 23%. Other activities accounted for 13.1% of the total GFCF, the statement said.

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

Indonesia and Singapore recorded modest performance in GFCF at 7.6% and 4.9% respectively, DOSM said.

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