Malaysia’s Compensation of Employees Grows 6.5 Pct in 2022

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Compensation of employees (CE) in Malaysia grew 6.5 percent in 2022, contributing 32.4 percent of gross domestic product, official data showed Wednesday.

The Department of Statistics Malaysia (DOSM) said in a statement that the CE component, which encompasses the remuneration received by employees for their labor services provided in the production of goods and services, was driven by the services and manufacturing sectors.

CE in the services sector expanded 5.6 percent year on year, which was supported by better growth in all sub-sectors, mainly wholesale and retail trade, food and beverage and accommodation.

In the manufacturing sector, CE grew at 8.6 percent, attributed to electrical, electronic and optical products.

Furthermore, CE in construction and mining and quarrying accelerated with a growth of 9.0 percent and 10.3 percent respectively.

Meanwhile, CE in the agriculture sector rebounded 2.3 percent.

The services sector continued to be the largest contributor to the overall CE amounting to 62.2 percent, followed by the manufacturing sector which accounted for 24.1 percent. Both sectors contributed 86.3 percent of CE in 2022.

The remaining CE was contributed by the construction and agriculture sectors, which represented 8.1 percent and 3.6 percent, respectively. The mining and quarrying sector made up 2.1 percent of CE in 2022.