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Pahang saw the highest rise in labour productivity, an increase of 4.9% to RM106,316 per person in 2024.
Malaysia’s labour productivity grew 2.4% in 2024, with six states and federal territories surpassing the national rate. According to the Department of Statistics Malaysia (DOSM), value added per employment rose to RM99,265 per person, an increase from RM96,914 in 2023.
Dato' Sri Dr. Mohd Uzir Mahidin, Chief Statistician Malaysia said the increase came as Malaysia’s economy expanded 5.1% in 2024, while total employment climbed to 16.6mn persons, an increase from 2.6% year-on-year.
Six states outpace national growth
Pahang saw the highest rise in labour productivity, an increase of 4.9% to RM106,316 per person in 2024, up from a 2.8% growth in 2023. This improvement was mainly driven by the construction sector, which expanded by 15.9%, followed by agriculture at 12.8% and services at 1.4%. However, mining and quarrying and manufacturing recorded slight declines of 2.3% and 0.9% respectively.
Johor followed closely with a 4.3% increase to RM80,156 per person, an increase from 2.1% in 2023. Growth was driven by a sharp expansion in construction (53.5%), alongside gains in mining and quarrying (10.5%), agriculture (3.8%), manufacturing (3.4%), and services (1.4%).
In Kuala Lumpur, productivity rose 3.% to RM100,223 per person, marking an improvement from 0.8% in 2023. All sectors recorded gains, led by construction (19.1%), mining and quarrying (3%), manufacturing (2.2%), services (2.1%), and agriculture (0.1%).
Melaka posted a 2.8% rise in labour productivity, with an increase to RM109,928 per person, driven by strong growth in construction (23.3%), agriculture (8.2%), manufacturing (2.6%), and services (2.3%).
Similarly, Selangor had a 2.8% increase to RM102,991 per person, supported by gains in mining and quarrying (11.6%), construction (9.3%), manufacturing (4.2%), and services (2.5%), although agriculture declined by 7.5%.
Over in Sarawak, productivity increased by 2.7% to RM129,525 per person, rebounding from a -1.2% in 2023. The improvement was supported by construction (14.7%), agriculture (3.9%), mining and quarrying (2.6%), services (1.6%), and manufacturing (1.4%).
Commenting on the overall results, Dato’ Mohd Uzir highlighted that most states recorded encouraging growth in 2024. He added that the construction sector was the key driver across the board, expanding by 16.4% in 2024, followed by manufacturing at 2.6%, agriculture at 2.2%, services at 1.8%, and mining and quarrying at 0.7%.
Construction sector drives overall performance
Across Malaysia, the construction sector was the strongest driver of labour productivity in 2024, expanding by 16.4% to RM47,223 per person. Growth was recorded across 14 states, led by Johor (53.5%), Perlis (28.1%), Melaka (23.3%), Kelantan (20.5%), Sabah (20.3%). Declines were noted only in Kedah (-15.5%) and Labuan (-2.6%).
The manufacturing sector also improved, rising 2.6% to RM134,532 per person after contracting in 2023. Notable increases were seen in Terengganu (4.6%), Selangor (4.2%), and Perak (3.8%). However, declines were recorded in Sabah (-5.0%) and Pahang (-0.9%).
Agriculture productivity grew 2.2% to RM54,762 per person, driven by strong performance in Pahang (12.8%), Kedah (8.4%), and Melaka (8.2%). However, some states saw declines, including Perlis (-19.9%), Selangor (-7.5%), and Sabah (-6.0%).
Meanwhile, the services sector expanded 1.8% to RM94,152 per person, supported by widespread growth across almost all states. Labuan (2.6%), Selangor (2.5%), and Melaka (2.3%) led the way. At the same time, there were also declines in Perlis (-1.0%) and Terengganu (-0.3%).
The mining and quarrying sector recorded a rise of 0.7% to RM1.29mn per person, with higher output in Selangor (11.6%), Johor (10.5%), and Terengganu (10.1%), offset by contractions in several states including Negeri Sembilan (-5.9%) and Kedah (-4.7%).
Towards a more resilient workforce
Dato’ Mohd Uzir noted that Malaysia’s productivity outlook remains positive amid stable labour market conditions and a growing economy. He highlighted that continued investment in skills development, digital transformation, and education will be essential to sustain productivity growth.
“Continued investment in skills development, particularly in empowering the workforce through training and education, digital transformation, communications and analytics, will be key to sustaining the enhancement of labour efficiency across Malaysian states,” he concluded.
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Lead image / DOSM
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