Selangor is optimistic about becoming the leading gross domestic product (GDP) contributor by state to the nation’s 5% GDP growth in 2015, its investment promotion agency, Invest Selangor Bhd (previously Selangor State Investment Centre) says.
According to the Department of Statistics’ GDP by state 2010-2014 report, Selangor led the GDP contribution, registering 22.4% followed by the Federal Territory (FT) of Kuala Lumpur (15.1%), Sarawak (10.1%), Johor (9.3%), and Sabah (6.5%).
Invest Selangor chief executive officer Hasan Azhari Idris said although the full figures for the 2015 GDP share by state have yet to be released, it was confident that the percentage would be higher.
“Looking at the current (economic) situation, the services sector will still be contributing a lot to Selangor’s share of the GDP,” he said recently.
Hasan said the manufacturing sector contributed 59% to Selangor’s services sector, while 30% came from the manufacturing sector.
According to the Department of Statistics, Selangor and Kuala Lumpur were major contributors to the services sector in the country with a combined percentage of 49.9%.
In the manufacturing sector, Selangor’s contribution was 28.8% followed by Penang (12.5%), Johor (12.4%) and Sarawak (12%).
Malaysia’s economy grew 4.5% in the final quarter (Q4) of 2015, bringing the full year GDP growth to 5% from 6% in 2014.
According to Bank Negara, despite the challenging economic environment in Q4 of 2015, the private sector continued to be the key driver of growth.
Between 2000 and 2014, Selangor under the SSIC recorded total capital investment of RM170.2 billion, comprising foreign direct investment (FDI) of RM82.1 billion and domestic direct investment of RM88.1 billion, accumulated from 1987-2014.
Hasan said in 2015, Selangor achieved investments of RM7.9 billion, up from RM7 billion in 2014. – Bernama, March 13, 2016.