Melaka posts second-highest GDP growth in Malaysia

Governor Mohd Khalil Yaakob says the state government will work hard to encourage foreign and domestic investments. (Bernama pic)

MELAKA: Melaka recorded a gross domestic product (GDP) growth of 8.1% last year, the second highest in the country after Sabah.

Governor Mohd Khalil Yaakob said the services sector remained the main contributor to the state’s economy at 44.8% of GDP.

The GDP per capita also expanded 11.2% to RM46,015 in 2017, surpassing the national-level figure of RM42,228.

“Realising that Melaka does not have natural resources that can be exported, the state government will work hard to encourage foreign and domestic investors to set up operations in the state’s industrial areas.

“I believe the state government is currently preparing and making adjustments to the master plan for Melaka’s overall development,” he said in his address when opening the Melaka state legislative assembly sitting at Seri Negeri here today.

According to the Malaysian Investment Development Authority’s Malaysia Investment Performance Report 2017, Melaka attracted approved investments totalling RM4.7 billion last year, the fifth highest in the country.

Khalil said the state government collected RM335 million in revenue last year, of which land revenue collection comprised RM242 million.

“This shows the people of Melaka are highly aware of fulfilling their responsibility to pay quit rent, the state’s main source of revenue,” he added.

He also said tithe (zakat) collection increased 17.6% to RM85.6 million last year, reflecting the improved economic well-being among Muslims in the state in addition to better awareness about tithe.