Retail, F&B, hotel segments boost services sector revenue

Retail, F&B, hotel segments boost services sector revenue

ICT, healthcare, education and entertainment also among drivers of growth.

Retail is among the segments that have driven an increase in revenue for the services sector in the first quarter of 2022.
PETALING JAYA:
Malaysia’s services sector revenue saw a double digit growth of 10.4% to RM473 billion in the first quarter of 2022, driven by wholesale and retail, food and beverage as well as the accommodation segments.

According to data from the department of statistics (DOSM), these three segments alone saw a 9.2% rise in revenue to RMRM378.7 billion.

Next were the information and communication, transportation and storage, and private healthcare, private education as well as arts, entertainment and recreation, which saw increases of 6.1% and 17.3% to RM69.5 billion and RM15.2 billion, respectively,” chief statistician Uzir Mahidin said in a statement.

Similarly, e-commerce income stood at RM278.2 billion, an increase of 9.3% year-on-year.

“However, for quarter-on-quarter comparison, the income of e-commerce dropped 4.2%,” he said,

Breakdown by sub-sector revealed the wholesale and retail trade sub-sector saw the highest improvement at 8.6% or RM28.5 billion, followed by the transportation and storage, and food and beverages sub-sectors which increased 32.2%, and 19.9%, respectively to record RM29.3 billion, and RM15.5 billion in 1Q’22.

On a quarter-on-quarter basis, total revenue in the first quarter increased 2.8% or RM12.9 billion. DOSM stated the growth was also propelled by the wholesale and retail trade and transportation and storage sub-sectors, which grew 1.9%, and 8.9%, respectively.

In the services sector, the workforce stood at 3.8 million persons, an increase of 99,500 individuals or 2.7% year-on-year.

DOSM said this was led by the wholesale and retail trade sub-sector with a growth of 3.9% or 72,600 individuals followed by the transportation and storage sub-sectors, which rose by 22,900 individuals or 7.2%.

For quarter-on-quarter, the number of people engaged rose 1.0% or 36,600 individuals.

For the quarter, salaries and wages paid also registered an increase of RM1.2 billion, or 5.0% year-on-year.

The DOSM attributed the improvement to the increases recorded by the wholesale and retail sub-sector, which rose 6% to RM13.5 billion, and the transportation and storage sub-sector, which saw an increase of 10.3% or RM2.7 billion.

“Meanwhile, for quarter-on-quarter comparison, salaries and wages grew 1.8% to register RM25.4 billion in the first quarter of 2022,” Uzir added.

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