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.
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