Services sector revenue grows 6.9% in 2Q – DoSM

KUALA LUMPUR: Services sector revenue registered a 6.9 per cent growth year-on-year (y-o-y) in the second quarter of 2023 (2Q 2023) to record a total of RM568.3 billion, the Department of Statistics Malaysia (DOSM) reported.

Chief statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said the services sector’s performance in the 2Q was driven by the wholesale and retail trade, food and beverages, and accommodation segment, which increased 5.9 per cent to RM433.5 billion.

“This is followed by the information and communication, and transportation and storage; and professional, real estate, and administrative and support service segments, which grew by 10.1 per cent and 9.9 per cent to RM79.5 billion and RM35.8 billion, respectively,” he said in a statement today.

Meanwhile, Mohd Uzir said e-Commerce income recorded RM280.5 billion, 2.5 per cent higher year-on-year in 2Q, but against the previous quarter, it declined 3.8 per cent.

Looking at analysis by quarter-on-quarter (q-o-q) comparison, DOSM said total revenue for services in 2Q 2023 increased 1.4 per cent or RM8.0 billion.

“The growth was also propelled by wholesale and retail trade, food and beverages, and accommodation segment, which grew 1.2 per cent, followed by information and communication, and transportation and storage; and professional, real estate and administrative and support service segments, which grew by 2.1 per cent and 1.7 per cent, respectively,” it said.

Mohd Uzir said the number of persons engaged in this (services) sector was 4.4 million persons, which increased by 73.4 thousand persons, or 1.7 per cent y-o-y.

“The rise is attributed to the wholesale and retail trade sub-sectors with an increase of 30,600 persons, or 1.6 per cent, followed by the transportation and storage sub-sector, which raised 14,900 persons or 4.3 per cent.

“For q-o-q, the number of persons engaged grew by 0.4 per cent, which amounted to 18,500 persons,” he said.

Mohd Uzir said salaries and wages paid registered an increase of RM1.2 billion, or 3.9 per cent y-o-y, attributed to the wholesale and retail trade sub-sector, which rose 2.0 per cent to record RM14.0 billion and followed by the transportation and storage sub-sector, which increased 6.3 per cent to record RM2.9 billion.

“Meanwhile, for q-o-q comparison, salaries and wages grew 0.8 per cent to register RM31.5 billion in the second quarter of 2023,” he said. – BK