Services sector achieved a record RM2.4 trillion in revenue in 2024, marking a 6.3% increase from the previous year, driven by strong consumer spending, tourism recovery, and digital expansion, according to the Department of Statistics Malaysia (DOSM).

For the fourth quarter of 2024, the sector posted RM627.9 billion in revenue, up 6.2% year-on-year, with all segments showing positive growth. Chief Statistician Malaysia, Datuk Seri Dr Mohd Uzir Mahidin, stated, "The growth of 6.2% was contributed by favourable performance in all segments of the Services sector."

Key Sectoral Growth

• Wholesale & Retail Trade, Food & Beverages, and Accommodation led with RM475.2 billion, up 5.4%, supported by higher consumer spending, increased dining-out activities, and a 17% rise in international tourist arrivals.

• Information & Communication and Transportation & Storage grew 6.5% to RM87.2 billion, driven by rising demand for digital services, higher internet penetration, and increased adoption of cloud computing.

• Professional, Real Estate, and Administrative & Support Services posted 10.8% growth, with heightened business activities in accounting, legal, architecture, and veterinary services.

• Private Health, Private Education, Arts, Entertainment & Recreation, and Personal Services rose 13%, bolstered by increased demand for healthcare, education, and leisure activities, with 78 concerts held in Q4 2024.

E-Commerce revenue in Q4 stood at RM310.2 billion, a 3.7% year-on-year increase, reinforcing its role in business expansion and consumer spending. The sector employed 4.5 million people, up 1.7%, with Transport & Storage and Wholesale & Retail Trade leading the rise. Salaries and wages grew 3.9% to RM33.3 billion.

Uzir highlighted that the sector's resilience was underpinned by continued tourism recovery, with 25 million international tourist arrivals in 2024. He added that sustained efforts in tourism development, digital innovation, and business expansion would be key to maintaining momentum and reinforcing Malaysia's position as a regional economic hub.