Malaysia's service sector
Service sector data
Key highlights of the service sector in 2021
29,909
Employment opportunities
94.1 billion ringgit
Total approved investment amount
26.5%
Foreign investment
3,803
Approved projects
Malaysia's service sector accounts for more than half of its GDP and is a major contributor to the country's economic growth, productivity, and income. An open and regulated service market facilitates easier access to information, skills, technology, and capital, while also enabling smoother cross-border movement of skilled labor. Malaysia is undergoing an economic transformation with a focus on high-value strategic activities. To embrace the Fourth Industrial Revolution, our service sector is evolving towards knowledge-intensive and productivity-driven development. Many multinational companies have seized the growing opportunities and cost-competitive business environment here, choosing Malaysia as their hub to meet business needs in the region and beyond
Main industries covered by the service sector in Malaysia
Business services
Malaysia offers investors a variety of high-skilled and tradable professional services. These services are expected to drive economic growth and enhance productivity, and we encourage relevant businesses to seize these opportunities
Educational services
The education services sub-sector covers various areas, including early childhood education, higher education, and professional skills training. To achieve the national vision of making Malaysia a regional center of educational excellence, the Malaysia Education Blueprint (2015-2025) outlines the direction forward, focusing on developing future-oriented graduates and industry talents who can thrive in the era of Industry 4.0
Green technology
With increasing global attention on ‘more sustainable energy’ and ‘lower carbon,’ renewable energy (RE) has become one of the fastest-growing energy sources. It is expected that by 2040, renewable energy will become the largest source of electricity
Healthcare services
Malaysia has an efficient two-tier healthcare system, with a government-operated healthcare sector coexisting with the private healthcare system
The government has revised policies to stimulate economic activity and improve the quality of the healthcare industry. The liberalized policy allows private hospitals, specialized medical services, and dental clinics to hold 100% foreign ownership
Tourism and hospitality
As the third-largest component of the service sector, tourism contributes 6% to Malaysia’s GDP and provides 23% or 3.5 million jobs (source: DOSM). Tourism activities have a multiplier effect on the ecosystem, including the hotel industry, tourism projects, retail, dining, and transportation services
Logistics services
Given the explosive growth of Industry 4.0 technologies in the region, Malaysia’s logistics sector is well-positioned to capitalize on the evolving digital environment
Oil and gas
Malaysia’s oil and gas (O&G) industry is strategically located at the intersection of East and West shipping routes and has established economic relations with regional neighbors, providing clear advantages and significant market opportunities for businesses. It remains a crucial sector of the Malaysian economy, contributing 20.0% to the annual GDP
Research and Development (R&D)
According to the annual national R&D survey by the Malaysian Science and Technology Information Centre (MASTIC), Malaysia has achieved its national initiative target of having 70 researchers per 10,000 labor force by 2020
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