KUALA LUMPUR: Malaysia’s gross operating surplus (GOS) slumped 6.9 per cent in 2020 compared to 3.7 per cent in 2019 – the lowest since 2009 (-12.6 per cent) – due to lower capacity of production, according to the Department of Statistics Malaysia (DOSM).
Chief statistician Datuk Seri Mohd Uzir Mahidin said the GOS, which consists of corporate profits earned by firms, constituted 60.1 per cent of the total economy in 2020 compared with 60.4 per cent in the previous year.
The services sector continued to be a major contributor to the GOS with a share of 56 per cent last year.
“This was followed by the manufacturing sector at 21.6 per cent, agriculture at 10.5 per cent, and mining and quarrying at 10 per cent while the construction sector contributed 1.9 per cent to GOS,” he said in a statement in conjunction with the release today of the Statistics of Malaysia’s Gross Domestic Product (GDP) Income Approach for 2020.
Mohd Uzir noted that Malaysia’s GDP in current prices recorded a decrease of 6.4 per cent in 2020 compared to 4.5 per cent in 2019 as all income components declined.
The compensation of employees (CE), which consists of wages paid to employees, declined three per cent in 2020, falling for the first time since the series began in 2005.
“Nonetheless, the share of CE to the total economy increased to 37.2 per cent (2019:35.9 per cent) contributed by the decreasing share of the GOS in 2020,” he said.
Mohd Uzir said in terms of share, the CE of the services sector was the largest contributor to the total CE, comprising 63.5 per cent in 2020.
“The share of CE in the manufacturing sector accounted for 22.6 per cent, followed by construction and agriculture sectors which contributed 7.9 per cent and 4.1 per cent, respectively.
“The remaining sector, mining and quarrying, constituted 1.9 per cent of the total CE in 2020,” he added.
The chief statistician said taxes less subsidies on production and imports contributed 2.7 per cent to the total economy in 2020. Taxes less subsidies recorded a significant decline of 30.4 per cent due to higher subsidies on production and lower taxes on production and imports in 2020.