Gross capital stock refers to the total value of physical assets, such as buildings, machinery, equipment, and infrastructure, owned by individuals, businesses, or the government. These assets are used to produce goods and services in the economy.

Meanwhile, net capital stock (NKS) was recorded at RM3.4 trillion, up 2.4% from the previous year. NKS is a measurement of the accumulated fixed assets after accounting for depreciation.

Chief Statistician Uzir Mahidin said the growth is in line with the recovery of gross fixed capital formation (GFCF), which rebounded to grow 6.8% in 2022, after a marginal decrease of 0.8% in the previous year.

GFCF refers to the total value of new and replacement physical assets purchased by businesses, government, and households during a specific period, typically a year.

“Overall, all economic sectors recorded positive growth except for mining and quarrying, which experienced a marginal 0.02% contraction, an improvement from the previous year, which contracted 0.3%,” he said.

“Further elaborating on NKS’s performance by kind of economic activity, the value of fixed assets in the services sector was the highest among other economic activities, with a value of RM2.3 trillion, which contributed 68.6% in 2022,” he added.

This sector accelerated to 3% supported by increases in wholesale and retail trade, food and beverages and accommodation and utilities activities, which recorded 7.5%, 7.3% and 7.1% growth, respectively.

NKS for the manufacturing sector amounted to RM395.2 billion and expanded by 2.7% (2021: 1.5%), driven by the sub-sector of food, beverages and tobacco, which increased by 6.1% (2021: 4.1%).