Malaysia’s business establishments rose 22pct in three years

KUALA LUMPUR: The number of active business establishments in Malaysia rose 22.1 per cent to 1.33 million in 2025 from 1.09 million in 2022, driven largely by growth in the services sector.

Preliminary findings from the Statistics Department’s Economic Census 2026 showed that the services sector accounted for 1.17 million establishments, or 87.5 per cent of the national total.

This was followed by construction with 86,200 establishments (6.5 per cent), manufacturing with 61,000 (4.6 per cent), agriculture with 18,300 (1.4 per cent) and mining and quarrying with 1,100 (0.1 per cent).

Within the services sector, wholesale and retail trade accounted for the largest share at 39.5 per cent, followed by food and beverage services at 14.2 per cent and personal services and other activities at 12.4 per cent.

Financial services recorded the highest annual growth in the number of establishments at 14.7 per cent, followed by accommodation at 14.5 per cent and food and beverage services at 6.6 per cent.

Administrative and support services grew 6.1 per cent, professional services 5.5 per cent and real estate 5.1 per cent.

In manufacturing, food products accounted for the largest share of establishments at 19.3 per cent, followed by non-metallic mineral products, basic metals and fabricated metal products at 18.4 per cent.

Wood products, furniture, paper products and printing accounted for another 17.1 per cent.

The number of establishments in the electrical, electronic and optical products subsector increased 3.1 per cent from 2022, in line with the country’s focus on developing high-growth, high-value industries under the 13th Malaysia Plan.

The construction sector recorded about 86,000 active establishments, with specialised construction activities accounting for the largest share at 34.4 per cent.

This was followed by non-residential building construction at 25.8 per cent and civil engineering at 22.6 per cent.

In agriculture, food crops accounted for 15.2 per cent of establishments, with their number increasing 17 per cent.

The number of ruminant and dairy livestock establishments rose 19 per cent, while aquaculture establishments grew 8.3 per cent.

Selangor, Kuala Lumpur and Johor recorded the highest number of active establishments, with a combined 643,355, representing 48.3 per cent of the national total.

The department said the census also identified 93,597 informal establishments, including street vendors and mobile businesses, while holiday home activities accounted for 71,101 units.

Field operations for the census, which began on Jan 5, concluded on Oct 31, covering five major economic sectors: agriculture, mining and quarrying, manufacturing, construction and services.

Of the 1.34 million establishments enumerated, 99.3 per cent were recorded as active.

The detailed findings are scheduled for release in April 2027, following further data processing and analysis.


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