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Malaysian Reserve
02-07-2025
- Business
- Malaysian Reserve
Johor tops state GDP growth in 2024 amid data centre surge
by GLORIA HARRY BEATTY 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.
Malaysian Reserve
04-06-2025
- General
- Malaysian Reserve
NGO calls for deeper probe into trafficking networks behind KLIA detainee case
By GLORIA HARRY BEATTY HUMAN rights non-profit organisation Tenaganita is urging authorities to go beyond border enforcement and investigate trafficking networks behind the arrival of 279 foreign nationals who were denied entry by the Kuala Lumpur International Airport (KLIA) division of the Border Control Agency (AKPS) on June 2. According to a recent statement by AKPS, this is the highest single-day record of Not-To-Land (NTL) cases since the KLIA Monitoring Team was established in 2023. The removal is part of AKPS's ongoing efforts to tighten border security. All individuals involved were ordered to return to their countries of origin immediately following documentation and further screening by its officers. Tenaganita ED Glorene Amala Das welcomed immigration authorities' use of intelligence tools to scrutinise travellers at the point of entry but warned that enforcement alone is not enough. 'It is encouraging to note that immigration authorities are using intelligence and available systems to assess incoming individuals against proper entry requirements, rather than allowing entry without sufficient scrutiny. 'However, while enforcement at the point of entry is important, it is equally critical to investigate and identify the networks facilitating these movements. We must ask: Who arranged for them to come? What agencies or individuals were involved on both ends, particularly in Malaysia?' she told the Malaysian Reserve. Glorene pointed out that these arrivals do not happen in isolation and are often Malaysian-based recruiters, agents, or companies complicit in enabling their travel and planned employment here. The group's years of work with migrant workers and trafficking victims reveal a pattern of deception by recruitment agents and companies operating in Malaysia and abroad. 'At Tenaganita, we have worked with many migrant workers and victims of trafficking who were deceived by false recruitment promises. Some sold their family lands or took on huge debts with the hope of decent work in Malaysia, only to find themselves exploited, undocumented, and abandoned. 'We hope that thorough investigations are underway to expose and hold accountable those who facilitated this attempt to enter Malaysia under dubious pretenses. Many of the individuals may have been victims of deception and coercion,' she cautioned. Glorene also urged that those detained be allowed to return home safely and share their experiences to raise awareness in their communities to prevent further exploitation. As the group continues its efforts to protect the rights of migrant workers and victims of trafficking, it believes accountability and systemic reform must go hand in hand with enforcement.
