Manufacturing powers Penang’s economy to 7.3pc growth in 2025

GEORGE TOWN, July 3 — Penang’s economy grew 7.3 per cent in 2025, with its gross domestic product (GDP) reaching RM130.3 billion.

According to the Department of Statistics Malaysia (DOSM), this was an increase from RM121.4 billion the previous year.

In terms of GDP per capita, Penang surpassed the national average of RM59,167, rising by RM4,477 from RM76,107 to RM80,584.

Chief Statistician of Malaysia Datuk Seri Mohd Uzir Mahidin said the manufacturing and services sectors contributed a combined 94 per cent to Penang’s GDP, followed by the construction sector with a 3.3 per cent share.

This was followed by agriculture (1.7 per cent) and mining and quarrying (0.1 per cent).

On its own, the manufacturing sector accounted for 47.3 per cent of the state’s economy in 2025, contributing RM61.7 billion.

“The sector expanded significantly by 10 per cent, compared to the 4 per cent growth recorded in 2024,” he said in a statement released recently.

He said electrical, electronic and optical products, the key drivers of the manufacturing sector, grew by 12.7 per cent.

This was supported by strong performance in electronic components and boards, communication equipment, and consumer electronics.

“Additionally, non-metallic mineral products, basic metal and fabricated metal products, which also supported the sector’s performance, grew by 8.7 per cent in 2025,” he said.

The services sector recorded a value added of RM60.8 billion, up from RM58.4 billion in 2024, representing growth of 4.1 per cent.

“This positive performance was driven by a 5.6 per cent increase in the wholesale and retail trade, food and beverage, and accommodation subsector, along with a 2.7 per cent expansion in the utilities, transportation and storage, and ICT subsector,” he said.

Meanwhile, the construction sector expanded 13.4 per cent, recording a value added of RM4.3 billion compared with RM3.8 billion in 2024.

The sector, which contributed 3.3 per cent to Penang’s GDP, was driven by double-digit growth in the civil engineering and special trade subsectors.

The agriculture sector was supported by a 3.4 per cent increase in the fisheries subsector, resulting in overall growth of 1.8 per cent in 2025.

The mining and quarrying sector also grew 1.1 per cent in 2025 compared with the previous year.