KUALA LUMPUR, July 29 (Xinhua) -- Malaysia's nominal gross domestic product (GDP) rose 4.8 percent year-on-year to 2.03 trillion ringgit (about 500 billion U.S. dollars) in 2025, with employees' compensation growing at a faster pace as labor market conditions strengthened and minimum wage increases took effect, official data showed Wednesday.
Compensation of employees (CE), which measures total remuneration paid to workers, increased 5.8 percent from a year earlier, lifting its share of GDP to 33.9 percent in 2025 from 33.6 percent in 2024, the Department of Statistics Malaysia said in a statement.
The stronger growth in employee compensation was supported by an improving labor market, with employment rising 1.3 percent and labor productivity per worker increasing 4 percent during the year.
The services sector remained the largest contributor to employees' compensation, accounting for 62.6 percent of total CE in 2025. Compensation in the sector increased 6.2 percent, with all subsectors recording growth, led by wholesale and retail trade, food and beverage services, and accommodation. ■