Malaysia’s nominal GDP hits RM2.03 trillion in 2025 as employees’ compensation share rises
Malaysia’s nominal GDP grew 4.8% to RM2.03 trillion in 2025, with compensation of employees (CE) accounting for 33.9% of GDP compared with 33.6% in 2024, the Department of Statistics Malaysia (DOSM) said on Tuesday.
Source: The Star · BusinessToday Malaysia · KLSE Screener · July 29, 2026 at 6:54 AM · AI-assisted report
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KUALA LUMPUR, 29 JULY 2026 —
Malaysia’s nominal GDP grew 4.8% to RM2.03 trillion in 2025, with compensation of employees (CE) accounting for 33.9% of GDP compared with 33.6% in 2024, the Department of Statistics Malaysia (DOSM) said on Tuesday.
Market Impact
CE rose 5.8% last year, outpacing overall economic growth and lifting its share of GDP, DOSM said in a statement. Gross Operating Surplus (GOS) accounted for 62.0% of GDP and grew 2.1%, while net taxes surged 53.7% to account for 4.1% of GDP. Net taxes totalled RM83.5 billion, driven by higher tax collections and a 36.5% drop in subsidies after fuel subsidy rationalisation.
The increase in CE reflected a stronger labour market, with employment up 1.3% and labour productivity per worker rising 4.0%, DOSM said. Higher wages also contributed, including the revised minimum wage of RM1,700 and the Public Service Remuneration System (SSPA). CE in services grew 6.2%, led by wholesale and retail trade, food and beverages, and accommodation. The construction sector saw an 11.4% rise in CE, while manufacturing recorded 2.5% growth.
By sector, services accounted for 62.6% of total CE in 2025, followed by manufacturing at 21.8%, construction at 9.5%, agriculture at 3.9% and mining and quarrying at 2.3%. GOS growth was led by services (5.2%), agriculture (5.0%) and construction (2.1%), while manufacturing and mining and quarrying declined 0.5% and 11.0%, respectively. Taxes on production and imports rose 12.9%, supported by higher services tax and import duties.