The Gross Capital Stock (GKS), which refers to the accumulated investment in the country’s fixed assets, increased by 2.8 per cent to RM5.4 trillion in 2022. Meanwhile, the Net Capital Stock (NKS), which symbolises the Malaysia’s economic wealth, registered RM3.4 trillion according to Capital Stock Statistics 2022.
Capital Stock Statistics are compiled and published based on economic activity and the type of asset.
Chief Statistician Malaysia, Dato’ Sri Dr. Mohd Uzir Mahidin said, “NKS grew by 2.4 per cent in 2022, compared to 1.8 per cent in the previous year. This is in line with the recovery of Gross Fixed Capital Formation (GFCF), which rebounded to 6.8 per cent in 2022, after a marginal decrease of 0.8 per cent in the previous year. Overall, all economic sectors recorded positive growth except for Mining & quarrying, which experienced a marginal 0.02 per cent contraction, an improvement from the previous year’s negative 0.3 per cent.”
Further elaborating on NKS performance by kind of economic activity, the value of fixed assets in the Services sector was the highest among other economic activities, with a value of RM2.3 trillion, which contributed 68.6 per cent in 2022. This sector accelerated to 3.0 per cent supported by increases in Wholesale and retail trade, Food & beverages and accommodation and Utilities activities, which recorded 7.5 per cent, 7.3 per cent and 7.1 per cent growth, respectively.
NKS for the Manufacturing sector amounted to RM395.2 billion and expanded by 2.7 per cent (2021: 1.5%), driven by the subsector of Food, beverages and tobacco which increased 6.1 per cent (2021: 4.1%). This was followed by Non-metallic mineral products, basic metal & fabricated metal products, which rose to 3.0 per cent (2021: 1.0%) and Petroleum, chemicals, rubber & plastic products, which grew by 2.9 per cent compared to 1.9 per cent in 2021.
Furthermore, net capital stock in the Construction sector grew to 3.4 per cent from 3.5 per cent in the preceding year, while net capital stock in the Agriculture sector moderated to 0.6 per cent from 0.9 per cent in 2021. The moderation of NKS in the Agriculture sector is in line with the performance of fixed assets investment in the Agriculture sector, which showed a decline of 8.9 per cent (2020) and 3.8 per cent in 2021, followed by a slight increase of 0.2 per cent in 2022.
Mohd Uzir added, “The acquisition of fixed assets by asset type, led by Structure, contributed 80.9 per cent and recorded a growth of 2.7 per cent in 2022 (2021: 2.5%). This was followed by Machinery & equipment assets, which contributed 10.9 per cent, indicating an increase of 1.5 per cent compared to a decline of 1.9 per cent in the previous year. Meanwhile, Other assets accounted for 8.1 per cent with a growth of 0.7 per cent in 2022. Malaysia’s asset composition is similar to those of other countries, such as South Korea and Singapore.”
The 12th Malaysia Plan (12MP) emphasises the goal of improving economic sustainability to achieve sustainable growth through increased productivity. Productivity growth can be achieved by increasing output. It is imperative that the government could encourage investment in fixed assets that can contribute to productivity growth.
