Johor tops state GDP growth in 2024 amid data centre surge
JOHOR led Malaysia's state economies in 2024 with a GDP growth of 6.4%, powered by a surge in data centre investments and large-scale infrastructure projects.
The state's strong performance helped lift the national economy, which expanded by 5.1% last year, up from 3.5% in 2023.
All states recorded positive growth in 2024, according to the Department of Statistics Malaysia (DOSM) in its annual 'GDP by State' report.
The top five fastest-growing states were Johor (6.4%), Selangor (6.3%), Kuala Lumpur (KL) (6.2%), Pahang (5.7%) and Labuan (5.4%). Meanwhile, Selangor, KL, Johor, Sarawak and Penang remained the largest contributors to the national economy, jointly accounting for 68.2% of total GDP.
Malaysia's total GDP rose to RM1.65 trillion in 2024, driven primarily by the services sector, which made up 59.4% of the economy and grew 5.3% year-on-year (YoY).
Manufacturing and agriculture also improved, rising 4.2% and 3.1% respectively, while construction posted a sharp 17.5% rebound YoY. Mining and quarrying edged up 0.9%.
Graphic: INFOGRAPHIC GROSS DOMESTIC PRODUCT (GDP), 2024
Data Centre Boom Fuels Johor's Rise
Johor's GDP reached RM158 billion last year, supported by its strategic southern location, robust infrastructure, major ports and industrial zones.
The rapid growth of data centres in the state has driven economic gains across services, manufacturing and construction sectors, with services up 6%, led by an 8.7% jump in finance, insurance, real estate and business services. Utilities, transport and storage, and ICT sub-sector increased by 6%.
Construction was the standout performer, soaring 42.7% as projects related to power substations, cooling systems and fibre optic networks came online. Manufacturing grew 4.2%, driven by gains in non-metallic minerals, metal products, and electrical and electronics (E&E) products grew by 7.1% and 1.9% respectively.
Johor is Malaysia's top agricultural producer, contributing 17.3% to the national agriculture GDP in 2024. Its agriculture sector rebounded 4.2% reversing the previous year's decline of 1.3%, lifted by stronger palm oil output, further supporting food processing and related manufacturing.
The 6.7% rise in vegetable, and animal oils and fats, and food processing further boosted manufacturing growth.
Selangor Cements Lead as Top Economic Powerhouse
Selangor retained its position as Malaysia's biggest state economy, contributing 26.2% of national GDP at RM432.1 billion. The state grew 6.3% due to robust services and manufacturing activities.
The services sector grew 6.3%, underpinned by ICT, transport and utilities. Consumer-related sub-sectors such as wholesale, retail, food and accommodation also grew 4.6%. Manufacturing expanded 5.1%, lifted by electronics, metals and mineral products.
KL, Pahang and Labuan Show Strong Momentum
KL remained the second-largest economy with RM265.8 billion in 2024, growing 6.2%, driven by services — particularly wholesale and retail, food and beverage (F&B) and accommodation (4.8%) and finance, real estate and business services (6.2%).
Pahang grew 5.7% in 2024, led by services (4.9%) and a strong rebound in agriculture (8.4%) driven by a 17.1% surge in oil palm production.
Meanwhile, Labuan grew 5.4% in 2024, also driven by its services sector (79.9% of its GDP), led by finance, insurance, real estate and business services (8%).
E&E Hubs Drive Penang, Kedah and Negri Sembilan
Penang's GDP rose 4.8% to RM121.5 billion, led by services (5%) and manufacturing (4%), with strong demand for E&E products (3.9%).
Kedah's GDP rose 4.2% to RM54 billion, supported by services (3.8%) and a manufacturing rebound (6.6%) driven by E&E (6.5%). On the other hand, Negri Sembilan expanded 4.6%, with growth in services (4.3%) and manufacturing (3.9%), also anchored by E&E.
Mixed Performance Across Other States
Terengganu and Melaka expanded 4.5% and 4.4% respectively, supported by growth in chemicals and electronics manufacturing, alongside steady services gains. Perak matched Melaka's pace, with a 4.4% expansion aided by palm oil, fisheries and petroleum-linked manufacturing.
Kelantan and Perlis recorded modest growth at 3.6% and 3.3% respectively. Both states remain heavily reliant on agriculture and services.
Sarawak's GDP grew 3.9% to RM148.2 billion, with gains in services (4.9%). Its mining and quarrying sector (4.1%) was the second-largest contributor, underpinned by sustained natural gas production (5.9%), which accounted for 74.6% of the sector's value added.
Manufacturing (1.3%) and agriculture (0.5%) posted modest recoveries, while crude oil declined by 2.6% YoY.
Sabah posted the weakest growth at 1.1%. Mining and quarrying (-5%) as well as Agriculture (-3.4%) sectors both contracted. The services sector was the largest contributor to the state's GDP at 52.4%, expanded by 4.2%, supported by tourism-related activities, while construction rebounded by 18.8% while the agriculture sector declined by 3.4%, largely due to a fall in oil palm production.
GDP Per Capita Rises, KL Still Leads
Malaysia's GDP per capita rose to RM56,734 in 2024 from RM54,608 the previous year. Five states remained above the national average: KL (RM136,365), Labuan (RM87,003), Penang (RM76,033), Sarawak (RM73,426) and Selangor (RM65,907).
Outlook For 2025 Stable, but Risks Remain
According to DOSM, early indicators show the economy remains on a stable footing in 2025. GDP in the first quarter of 2025 (1Q25) grew 4.4%, slightly lower than 4Q24's 4.9% but above the 4.2% posted in 1Q24. The labour market also strengthened, with unemployment falling to 3.1%.
'However, key challenges to Malaysia's economic performance include the continued slowdown in global growth, persistent geopolitical tensions and uncertainties in global monetary policy, which could affect the momentum of trade and investment activities,' it said in a statement.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Barnama
20 hours ago
- Barnama
Comprehensive Approach Needed To Attract Youth To Join Agricultural Sector
GENERAL KLANG, July 29 (Bernama) -- A comprehensive approach needs to be introduced to attract and encourage young people to join the agricultural sector, said Selangor Menteri Besar Datuk Seri Amirudin Shari. He said the move was important following the Selangor 2024 Agricultural Census Interim Report's showing that the majority of farmers in the state are now aged 46 and above. He said that apart from promising high returns, the agricultural sector also needs to be seen as a 'cool' activity from the perspective of young people. "There was once a 'trend' of young people, including engineers, getting involved in agriculture, but that did not continue. "Following that, we have to make agriculture 'cool', a good activity because it brings high yields or returns," he told reporters after launching the Selangor 2024 Agricultural Census Interim Report here today. Also present at the event was Chief Statistician of Malaysia Datuk Seri Dr Mohd Uzir Mahidin, who is also Commissioner of the 2024 Agricultural Census. Earlier, the Selangor Department of Statistics Malaysia (DOSM in a media statement said that the majority of agricultural entrepreneurs in Selangor or 77.3 per cent were aged 46 and above, while 44.5 per cent were aged 60 and above. Commenting further, Amirudin said the policy to encourage young people to become farmers was expected to be implemented in the state budget or the upcoming Selangor Plan. In addition, he said the findings of the agricultural census would also be examined by Selangor Infrastructure and Agriculture Committee chairman Datuk Izham Hashim, the Selangor Agriculture Department, and related departments in improving policies or guidelines regarding the sector.
The Star
a day ago
- The Star
Household financial assets are double debt levels, Dewan Rakyat told
KUALA LUMPUR: Malaysia's household financial assets remain robust, standing at 2.1 times more than total household debt, the Dewan Rakyat was told. This is despite debt levels reaching RM1.65 trillion, equivalent to 84.3% of the nation's gross domestic product (GDP), as at the end of March, said Deputy Finance Minister Lim Hui Ying. She added that while household debt levels are significant, they must be assessed alongside the size of financial assets owned. 'Household debt must be viewed in tandem with financial assets, which are substantially larger. 'In aggregate, household financial assets continue to exceed debt by 2.1 times, providing a strong buffer for households,' she told Datuk Awang Hashim (PN-Pendang) who asked about Malaysia's high debt-to-GDP ratio. In a reply to Datuk Ngeh Koo Ham (PH-Beruas), Lim added that the government remains committed to optimising public expenditure. She said this will be achieved through subsidy rationalisation, a review of statutory bodies and a comprehensive reassessment of government spending as part of broader fiscal management efforts. Among the measures being pursued are the gradual implementation of fiscal consolidation, broadening the revenue base and ensuring sustainable revenue collection, she added. 'Government borrowings are strictly for financing development expenditure projects and programmes that generate long-term returns for the nation and its people,' she said. Lim pointed out that the government has capped financial guarantee exposure at 25% of GDP under the Public Finance and Fiscal Responsibility Act 2023 to ensure exposure remains within limits aligned with current economic and fiscal capacity. In addition, she said, the government is prioritising user-pay projects through the 2030 Public-Private Partnership Master Plan (Pikas 2030) to reduce the fiscal burden. She added that the government is also reviewing the use of off-budget mechanisms for project implementation and will only consider development projects that fall within the scope and ceiling of the country's five-year Malaysia Plans. Lim also highlighted that key national strategies – including the National Energy Transition Roadmap (NETR), the New Industrial Master Plan 2030 (NIMP 2030), the Governance, Empowerment and Accountability Reform-Up (GEAR-uP) programme and policy enhancements such as minimum wage adjustments – are expected to stimulate economic activity, strengthen government revenue and reduce reliance on borrowing. 'The government is also committed to implementing institutional reforms to support national development, including the tabling of the Government Procurement Bill aimed at improving procurement processes and governance,' she said. This includes drafting legislation related to government-linked companies (GLCs) to enhance corporate governance, improve accountability and optimise GLC performance, she added.
The Sun
a day ago
- The Sun
Malaysia household debt at RM1.65 trillion in Q1 2025
KUALA LUMPUR: Malaysia's household debt stood at RM1.65 trillion as of the end of March 2025, equivalent to 84.3 per cent of the nation's gross domestic product (GDP). However, Deputy Finance Minister Lim Hui Ying highlighted that the value of household financial assets exceeds the total debt, indicating that the public's overall financial position remains strong. 'Household debt should be viewed alongside household financial assets, which are significantly larger. 'On aggregate, household financial assets continue to exceed debt by 2.1 times, providing a solid buffer for households,' she told the Dewan Rakyat today. Lim was responding to a supplementary question from Datuk Awang Hashim (PN-Pendang), who inquired about the debt-to-GDP ratio. She said that regarding household debt, the government and Bank Negara Malaysia are always committed to assisting credit users who face financial difficulties. In response to the original question posed by Datuk Mohd Shahar Abdullah (BN-Paya Besar), who asked whether the government has regulatory plans for credit services to ensure stronger consumer protection, Lim said that loans approved by financial institutions are subject to the Policy Document on Responsible Financing. This document was issued by Bank Negara Malaysia (BNM) and has been in effect since 2012. Lim explained that through the implementation of this policy document, the debt service ratio (DSR) for households remains within prudent levels, with the median DSR for outstanding loans at 34 per cent, while the median DSR for newly approved loans is 41 per cent in 2024. 'The DSR maintained within these prudent levels serves as an adequate buffer for households to meet their debt obligations,' she said. Meanwhile, Lim said that the Credit Counselling and Management Agency (AKPK) also provides advisory services and assistance in financial management and loan restructuring. The deputy minister added that AKPK has successfully helped more than 64,000 borrowers fully settle their loans through its Debt Management Programme, while nearly 270,000 participants remain actively engaged in their financial recovery journeys under this programme. - Bernama
