KUALA LUMPUR, July 21 ― Malaysia's Gross Fixed Capital Formation (GFCF), the second largest component in the gross domestic product (GDP) with a share of 23.1 per cent from the overall economy, declined 2.1 per cent last year from 1.4 per cent in 2018, the Department of Statistics Malaysia (DOSM) said.

Chief statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said this is due to the lower acquisition of fixed assets in manufacturing and mining and quarrying sectors as well as the lethargic performance in construction sectors.

Services and agriculture sectors, however, posted a positive growth.

"Malaysia’s GFCF at current prices recorded a value of RM346.8 billion and GFCF at constant prices amounted to RM328.4 billion,” he said in a statement today.

He said GFCF growth for the services sector moderate to 1.5 per cent last year from 5.5 per cent in 2018 due to the slower performance in finance, insurance, real estate and business services.

"On the other hand, transportation and storage and information and communication declined to 0.4 per cent as compared to the preceding year,” he said.

Mohd Uzir said GFCF for manufacturing sector contracted by 10.1 per cent from 2.6 per cent contraction in 2018 due to the decline of 16.9 per cent in petroleum, chemical, rubber and plastic products.

He said electrical, electronic and optical products and transport equipment has also weighed down the overall performance of manufacturing sector by contracting 6.8 per cent.

"Moreover, non-metallic mineral products, basic metal and fabricated metal products and textiles and wood products contracted 7.4 per cent and 7.6 per cent respectively,” he said.

He said GFCF for mining and quarrying declined 9.1 per cent from 11 per cent contraction in the preceding year and construction sector decreased by 1.4 per cent as compared to a growth of 4.3 per cent in 2018.

In contrast, he said agriculture sector posted a growth of 0.2 per cent, compared to a negative 1.8 per cent growth previously, due to a positive growth in livestock and fishing by 5.3 per cent.

Mohd Uzir said structure remained as the major contributor to GFCF by type of assets with a share of 58.5 per cent and declined 0.6 per cent.

He said the acquisition of fixed assets in information and communications technology (ICT) equipment and machinery and equipment and other assets declined four per cent and 5.4 per cent respectively.

"Private sector, which contributed 72.8 per cent was the main impetus for GFCF with a growth of 1.6 per cent,” he said.

However, he said public sector recorded a smaller portion by contributing 27.2 per cent in 2019.

He said services and manufacturing activities were the main contributors in GFCF of private sector.

"The share of services activity stepped-up to 61.5 per cent while manufacturing activity retained its position as the second contributor with a share of 22 per cent.

"The remaining activities made-up 16.5 per cent of the total private GFCF,” he said.

He said GFCF of the public sector was largely dominated by services and mining and quarrying activities with a share of 77.5 per cent and 13.9 per cent respectively.

Meanwhile, he said manufacturing activity registered a share of eight per cent as against 8.7 per cent in 2018.

"As a conclusion for overall GFCF 2019, the statistics provide essential information to measure the potential growth of Malaysia’s economy based on fixed assets investment position,” he added. ― Bernama