LocalBusiness & Finance
29 Oct 2026 • 4:48 PM MYT
The Sun Daily
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PETALING JAYA: Labour productivity improved across Malaysia in 2025, but the economic value generated per worker remained uneven, with Sabah and Kelantan recording figures well below the national average, according to the Department of Statistics Malaysia (Dosm).
Sabah recorded annual value added of RM65,967 per employed person, the lowest nationwide, followed by Kelantan at RM74,239. Both figures were below the national average of RM104,556, according to Dosm’s Labour Productivity by State, 2025 report released on Oct 29.
The measure reflects the economic value added relative to employment, rather than workers’ wages or take-home pay.
The gap also extended to Kedah (RM84,494), Perlis (RM86,483), Johor (RM86,568), Perak (RM92,421) and Kuala Lumpur (RM101,610), all of which remained below the national level.
Despite having the lowest productivity level, Sabah recorded growth of 5% in 2025, recovering from a 0.7% contraction the previous year. Sarawak’s productivity grew by 3.1%.
“Every state recorded positive labour productivity growth, with five states exceeding the national rate of 4.0% in 2025,” Dosm said.
Johor recorded the fastest growth at 6.6%, followed by Selangor at 5.3%, Sabah and Penang at 5% each, and Perak at 4.3%.
Despite leading in growth, Johor’s productivity level remained below the national average, highlighting the difference between the pace of improvement and the amount of economic value generated per worker.
Selangor recorded value added of RM110,015 per worker, while Penang registered RM112,219, illustrating how productivity levels and growth rates can present different pictures of economic performance.
At the other end of the scale, Terengganu recorded growth of just 0.1%, followed by Labuan at 0.3%, Perlis at 1.1% and Kedah at 1.4%.
Other states and federal territories that recorded growth below the national rate were Negeri Sembilan, Melaka, Pahang, Sarawak, Kelantan, Putrajaya and Kuala Lumpur.
“These achievements reflect differing productivity growth patterns among states, supported by a combination of contributions from various economic sectors,” Dosm said.
National labour productivity growth reached 4% in 2025, up from 3.7% in 2024, as value added per employed person increased from RM100,570 to RM104,556.
Employment rose to 16.6 million from 16.4 million, alongside overall economic growth of 5.2%.
The construction sector recorded the strongest productivity growth at 11.4%, led by Sabah, which registered a surge of 27.6%. Johor followed at 24%, while Selangor recorded growth of 18.8%.
However, construction productivity declined in six states: Perlis (-13.6%), Terengganu (-5.1%), Kedah (-2.1%), Melaka (-1.6%), Pahang (-1.4%) and Negeri Sembilan (-0.1%).
Manufacturing productivity grew by 4% nationwide, led by Perak at 15.5% and Kelantan at 11.6%. However, productivity contracted by 1.3% in Terengganu and 0.1% in Sabah.
<a href="https://bitcomme.com/chainsight-appoints-tom-lin-to-lead-expansion-of-data-ai-services-2/” title=”Chainsight Appoints Tom Lin to Lead Expansion of Data & AI Services”>Services productivity increased by 3.8%, with all states and federal territories recording positive growth. Johor led the sector at 8%.
Agricultural productivity grew by 2.3% nationwide, although performance varied considerably across states. Perlis recorded growth of 16.8%, while Kedah and Putrajaya registered contractions of 11.9% and 24.1% respectively.
Mining and quarrying was the only sector to record a national contraction, with productivity slipping by 0.1%. Terengganu registered a decline of 5.1%, while Perak and Selangor recorded increases of 6.7% and 6.1% respectively.
Across the various sectors, value added per worker ranged from RM52,753 in construction and RM56,573 in agriculture to RM1,290,563 in mining and quarrying, reflecting differences in the nature and economic value of activities across industries.
Dosm said continued investment in human capital, digital transformation, and communication and analytical skills was important to improving workforce efficiency and supporting sustainable economic growth.
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