The statistics of National Economic Accounts of Malaysia portray a comprehensive picture of macroeconomic indicators concerning income, saving, investment and net lending or net borrowing for each institutional sector in the economy.
The Department of Statistics Malaysia (DOSM) released a note dubbed the National Economic Accounts of Malaysia 2021 today (Dec 19) which cited that the National Economic Accounts of Malaysia present a complete overview of transactions and relationships among the various flows of the economy. This publication was previously known as Distribution & Use of Income Accounts and Capital Account.
Malaysia’s gross disposable income posted RM1,497.1 billion in 2021 with Households sector comprised RM903.1 billion.
Households’ disposable income grew by 2.8 per cent (2020: -4.1%), attributed to the higher receivables of social benefits and the improvement in the labour force participation rate. This has resulted in final consumption or households spending gained a momentum in 2021 by registering a growth of 3.7 per cent (2020: -4.3%).
Hence, Malaysian households saving rate was 8.3 per cent of households’ disposable income (includes adjustment for the change in pension entitlements) in 2021.
Gross national saving (GNS) recorded RM402.6 billion in 2021 (2020: RM337.9 billion), an increase of 19.1 per cent from the previous year.
The Non-financial corporations sector recorded the highest gross saving with RM283.3 billion (share: 70.4%), followed by Households with RM80.8 billion and General government sectors with RM21.8 billion.
The remaining gross saving was from Financial corporations sector which amounted to RM16.7 billion.
Malaysia’s economy was a net lender to the external sector with RM59.7 billion or 3.9 per cent of Gross Domestic Product (GDP) in 2021. Net lending (+) or Net borrowing (-) represents the changes in net worth due to saving and capital transfers that were used to fund capital formation or investment.
The Non-financial corporations held a Net lending position of RM119.1 billion or 7.7 per cent of GDP. Both Households and Financial corporations’ sectors also registered Net lending position of RM28.3 billion and RM4.6 billion, respectively.
Nevertheless, General government sector had a Net borrowing position within the economy with an amount of RM92.3 billion in 2021.
