2 days ago
Strong Domestic Demand Pushed Service Sector To Record 5.7% Growth In 2Q
The Services sector increased by 5.7 per cent year-onyear in the second quarter of 2025, reaching RM641.4 billion in revenue. This is reported by Department of Statistics Malaysia (DOSM) in release of The Quarterly Services Statistics, Second Quarter 2025. The report presents statistics on Services sector, which
encompasses the sub-sectors of Wholesale & Retail Trade; Information & Communication; Transportation & Storage; Accommodation; Food & Beverage; Professional; Private Health; Private Education; Arts, Entertainment & Recreation; Real Estate; Administrative & Support Service; Personal Services & Other Activities, and Income of e-Commerce.
Chief Statistician Malaysia, Dato' Sri Dr. Mohd Uzir Mahidin, reported that 'The strong 5.7 per cent increase in the second quarter was supported by the positive performance of all segments within the sector. This growth reflects the stability of domestic demand and the sector's vital role in supporting overall economic expansion.'
The Wholesale & Retail Trade, Food & Beverages, and Accommodation segment recorded a year-on-year revenue growth of RM22.5 billion or 4.9 per cent, reaching RM484.0 billion in the second quarter of 2025. This improvement was mainly supported by the increase in domestic travel across the country, which encouraged higher consumer spending. In addition, public holidays and festive breaks such as Hari Raya Aidilfitri, Wesak Day, Pesta Kaamatan, Hari Gawai, Labour Day, Hari Raya Aidiladha, and the school holidays
encouraged more household spending. At the same time, the increase in international visitor arrivals further supported the growth of this segment.
