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Malaysian services sector revenue shrinks 24% in Q2

10 Aug 2020 / 19:59 H.

KUALA LUMPUR: The services sector’s revenue recorded negative growth of 24.0% in the second quarter of 2020 to RM335.6 billion compared with the same quarter of the previous year, said the Department of Statistics Malaysia.

Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said the Wholesale & Retail Trade, Food & Beverages and Accommodation segment decreased 23.7% to RM266.5 billion, registering the largest decline on record since 2013.

“This was followed by the Information and Communications, and Transportation and Storage segment which contracted 21.3% to RM51.9 billion while the Health, Education and Arts, Entertainment and Recreation segment declined 41.7% to RM9.6 billion.

“In addition, the Professional and Real Estate Agent segment fell 20.9% to RM7.6 billion,“ he said in a statement.

Mohd Uzir said total revenue on a quarterly basis recorded a decrease of RM102.3 billion or 23.4% RM335.6 billion.

He said the number of persons engaged in this sector was 3.7 million, down by 115,400 persons or 3.1% from the same period last year.

This decrease was contributed by the Wholesale and Retail Trade, Food and Beverages and Accommodation segment with a drop of 94,817 persons or 3.4%. On a quarterly basis, the number of persons engaged fell by 96,314 persons or 2.6%.

Mohd Uzir said in line with the drop in the number of persons engaged, salaries and wages paid amounted to RM23.5 billion, a decrease of 6.4% year on year. This was contributed by the Wholesale & Retail Trade, Food & Beverages and Accommodation segment with a decrement of RM516 million or 3.5%.

On a quarterly basis, salaries and wages fell RM1,429.7 million or 5.7%.

“The performance of the services sector in the second quarter of 2020 indicated the lowest growth, due to the Covid-19 pandemic. The implementation of the stimulus packages and short-term economic plans to reduce the impact of Covid-19 are expected to drive the country’s economic recovery in the next quarter,“ he added. – Bernama

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