Malaysia

Malaysia GDP per Capita

*Update in April, October each year*

According to IMF, Malaysia's GDP per capita is estimated to be USD 13,140 in 2024, with a growth rate of 6%, and GDP per capita is expected to reach USD 17,590 in 2029.

In the past, Malaysia divided its population into three groups based on household income and provided subsidies to the B40 (Bottom 40%) low-income group. However, from 2024 onwards, the Malaysian government will gradually replace this classification with the household net disposable income classification, and allocate fuel subsidies for disposable income, and increase taxes to ensure that all households in the country have a fair share of the benefits.

Malaysia CPI

*Update in April, October each year*

From January to August 2024, Malaysia's CPI remained below 1.9%, with the core CPI increasing by 1.9%. The main sources of CPI growth were housing and fuel inflation, the increase in the inflation of various services, and the adjustment of water tariffs, of which housing and fuel increased by 3.1%.

In June 2024, the Malaysian government formally abolished the long-term diesel price subsidy measure. On the day of implementation, diesel prices in Malaysia surged by 56% and remained at a high level until mid-September, when they came down slightly, and discussions on the abolition of subsidies on gasoline and grains in Malaysia have also been heating up. It is expected that Malaysia's CPI will continue to rise in the future, especially due to the potential inflationary impact of fuel price normalization.

Malaysia PPI

*Update in April, October each year*

The Producer Price Index (PPI) measures inflation in five key sectors in Malaysia, namely Agriculture, Forestry and Fisheries, Mining, Manufacturing, Electricity and Natural Gas Supply and Water Supply.

From January to August 2024, the growth rates of water supply and mining were higher, with the increase in water supply falling between 7.2 and 9% since April 2024, mainly due to the increase in water prices, as each state in Malaysia must invest in the operation and capital expenditures of infrastructure in order to maintain the quality of water supply, and the state governments adjusted the corresponding water price adjustments. The increase in mining was above 5% from February to May 2024, and even reached 10% in April, but dropped to -8.3% in August, indicating that the fluctuation of the “mining industry” is relatively large.

Malaysia FDI

*Update in April, October each year*

Malaysia's foreign direct investment (FDI) in the first half of 2024 amounted to RM 74.58 billion (about USD 15.8 billion), compared to RM 63.89 billion (about USD 13.68 billion) in the same period of 2023, an increase of 16.7% year-on-year.

The manufacturing sector accounted for 63.8% of the total, amounting to RM47.61 billion (USD 10.09 billion), while the service sector accounted for 35.7% of the total, amounting to RM26.69 billion (USD 5.66 billion).

FDI growth was driven by the electronics and electrical machinery manufacturing sector, with supply chain security and risk management shifting trade and investment to Malaysia amidst ongoing geopolitical instability.

The top three investing economies in the first half of 2024 were Austria (RM 30.08 billion), Singapore (RM 16.47 billion) and China (RM 9.81 billion), which together accounted for 75.6% of the total FDI, while Taiwan ranked 5th with MYR2.4 billion (RM 510 million). Taiwan ranked 5th with MYR2.4 billion (USD 510 million). In terms of the ranking of states receiving foreign investment, the top three states were Kedah (RM 30.83 billion), Kuala Lumpur (RM 13.23 billion), and Selangor (RM 12.55 billion), which accounted for about 76% of the total FDI in the country.

Malaysia International Trade

*Update in April, October each year*

Malaysia's total international trade in the first half of 2024 amounted to RM 1.4 trillion (about USD 299.59 billion), an increase of 8.4% year-on-year, with exports amounting to RM 731.11 billion (about USD 156.89 billion), imports amounting to RM 664.99 billion (about USD 142.7 billion) and trade surplus of RM 66.12 billion (about USD 14.19 billion), a decrease of 44.5% compared to the same period in 2023.

The decrease in trade surplus was mainly due to the growth in imports. Imports grew by 13.8%, with iron and steel products (26.5%) and machinery, equipment and parts (22.3%) growing the fastest.

In the first half of 2024, Malaysia's major trading partners were Singapore, China, the United States and Japan, accounting for 46.3% of total trade.

The top three exporting economies were Singapore, the United States and China, with major exports of electronic and electrical products (accounting for 38.5% of Malaysia's total exports), refined petroleum products, and palm oil. The top three importing economies were China, the United States and Singapore, with major imports of electronic and electrical products, chemicals, and machinery, equipment and parts.