KUALA LUMPUR, Feb 26 — The service sector is set to grow 5.5 per cent this year and contribute to Malaysia’s economic expansion, said the International Trade and Industry Ministry.

Minister Datuk Seri Mustapa Mohamed also said the sector generated RM638.8 billion last year.

"The healthy growth in this sector is generated through exports contribution, which has recorded a growth of 7.8 per cent with a value of RM157.8 billion over the previous year,” he said.

The service sector amounted to 54.4 per cent of Malaysia's gross domestic product (GDP) with a total value of RM1.5 trillion in 2017, he said.

Mustapa added the service sector also provides 3.6 million jobs to Malaysians, mainly comprising high-income work in industries such as aerospace, e-commerce, ICT, healthcare R&D and professional services.

Other high-performing sectors include tourism and telecommunications.