Gross Fixed Capital Formation (GFCF) in Malaysia for the year 2023 recorded RM350.7 billion as compared to RM326.7 billion in the previous year at current prices. Meanwhile, GFCF at constant prices recorded RM314.5 billion, with a growth of 5.5 per cent as compared to 6.8 per cent in the previous year.
The Department of Statistics Malaysia (DOSM) in its Gross Fixed Capital Formation 2023 release today stated the growth was driven by the strong performance of the Services, Manufacturing and Mining & quarrying activities.
The combination of global economic pressures, domestic policy adjustments, sector-specific challenges, and financial conditions has significantly contributed to the moderate in Gross Fixed Capital Formation (GFCF) growth in Malaysia in 2023.
The Gross fixed capital formation (GFCF), consists of resident producers’ investments, deducting disposals, in fixed assets during a given period. It also includes certain additions to the value of non-produced assets realised by producers or institutional units. Fixed assets are tangible or intangible assets produced as outputs from production processes that are used repeatedly, or continuously, for more than one year.
Dato’ Sri Dr. Mohd Uzir Mahidin, Chief Statistician Malaysia, said: “GFCF remained the second largest component of GDP with a share of 20.1 per cent of the total economy. GFCF grew 5.5 per cent in 2023 as compared to 6.8 per cent in the previous year.
On the performance of GFCF by kind of economic activity, he said, “All major activities showed an improvement in 2023, especially investment in fixed assets in the Services and Manufacturing activities. The strong performance of the Services activity was driven by Transport & storage and information & communications and Wholesale and retail trade sub-activities, which increased by 9.9 per cent and 8.9 per cent, respectively in 2023.”
GFCF remained the second largest contributor to the Gross Domestic Product (GDP) with a contribution of 20.1 per cent (2022: 19.7%).
The investment in fixed assets was dominated by the Private sector (77.2%), while Public sector contributed 22.8 per cent. In terms of type of assets, GFCF was led by Structure.
GFCF By Kind Of Economic Activity
The GFCF for the Services activity increased by 6.1 per cent, contributed by the growth in Wholesale and retail trade, Transportation & storage and information & communication, and Finance, insurance, real estate and business services sub-activities, surged by 8.9 per cent, 9.9 per cent and 6.7 per cent, respectively in 2023.
The growth in fixed asset acquisition in the Manufacturing activity moderated by 5.5 per cent (2022: 10.0%), influenced by the performance of the Food, beverages and tobacco sub-activity, which recorded 8.9 per cent (2022: 14.7%) and Electrical, electronic & optical products and transport equipment at 6.8 per cent (2022: 9.3%).
Meanwhile, Petroleum, chemical, rubber and plastic products showed a growth of 4.5 per cent as compared to 8.7 per cent in the previous year.
The Construction activity recorded a growth of 2.7 per cent in 2023 as compared to 3.4 per cent in the previous year. Additionally, the Mining & quarrying activity recorded an increase of 2.9 per cent as compared to 1.8 per cent recorded in 2022.
At the same time, the Agriculture activity increased marginally by 0.4 per cent (2022: 1.1%). This performance was contributed by slower momentum in Rubber and palm oil (2023: -5.4%, 2022: -4.3%) and Other agriculture (2023: 3.2%, 2022: 8.8%).
GFCF By Type Of Assets
The acquisition of fixed assets by type of assets was led by Structure, with a contribution of 50.1 per cent, which showed an increase of 6.1 per cent as compared to 4.8 per cent at constant prices in 2022.
Meanwhile, ICT Equipment and other machinery & equipment and Intellectual property products showed a growth of 6.5 per cent (2022: 12.9%) and 1.9 per cent (2022: 3.4%), respectively.
GFCF By Sector And Kind Of Economic Activity
The Private sector remained the main contributor to GFCF, with a contribution of 77.2 per cent. This sector grew by 4.6 per cent as compared to 7.2 per cent in 2022.
Additionally, the Public sector also showed an increase of 8.6 per cent as compared to 5.3 per cent in the preceding year.
The Services activity was the main contributor to the GFCF in the Private sector, contributing 63.9 per cent.
This was followed by Manufacturing activities, which contributed 23.0 per cent. Meanwhile, Other activities contributed 13.1 per cent to the overall GFCF of the Private sector.
The GFCF in the Public sector was driven by Services activity with a contribution of 80.5 per cent, followed by Mining & quarrying and Manufacturing activities, which contributed 9.9 per cent and 8.8 per cent, respectively.
GFCF By Type Of Assets
The acquisition of fixed assets by type of assets was led by Structure, with a contribution of 50.1 per cent, which showed an increase of 6.1 per cent as compared to 4.8 per cent at constant prices in 2022.
Meanwhile, ICT Equipment and other machinery & equipment and Intellectual property products showed a growth of 6.5 per cent (2022: 12.9%) and 1.9 per cent (2022: 3.4%), respectively.
GFCF By Sector And Kind Of Economic Activity
The Private sector remained the main contributor to GFCF, with a contribution of 77.2 per cent. This sector grew by 4.6 per cent as compared to 7.2 per cent in 2022.
Additionally, the Public sector also showed an increase of 8.6 per cent as compared to 5.3 per cent in the preceding year.
The Services activity was the main contributor to the GFCF in the Private sector, contributing 63.9 per cent.
This was followed by Manufacturing activities, which contributed 23.0 per cent. Meanwhile, Other activities contributed 13.1 per cent to the overall GFCF of the Private sector.
The GFCF in the Public sector was driven by Services activity with a contribution of 80.5 per cent, followed by Mining & quarrying and Manufacturing activities, which contributed 9.9 per cent and 8.8 per cent, respectively.
