INTRODUCTION

Gross Fixed Capital Formation (GFCF) for year 2010 to 2014 has been realigned with the rebasing of GDP to year 2010. The statistics are presented by kind of economic activity, type of assets and public & private sectors at current and constant 2010 prices.

PERFORMANCE OF GFCF

In 2014, GFCF grew by 4.8 per cent (constant prices) with a value of RM264.3 billion (Chart 1). In current terms, value of GFCF stood at RM287.5 billion.

GFCF by activity marked the Services sector remained as the significant contributor to the growth, followed by Manufacturing and Mining & Quarrying. During 2014, Private sector investment continued as the catalyst towards total investments. 

Chart 1: GDP and GFCF at Constant 2010 Prices, 2010-2014
 

GFCF BY KIND OF ECONOMIC ACTIVITY

Table 1 shows the growth and composition of GFCF by kind of economic activity. For year 2014, acquisition of fixed assets for all activities in the economy posted a positive growth spearheaded by Services and Manufacturing. 

Table 1: GFCF at Constant 2010 Prices, 2013 and 2014
 

Services remained as the main contributor for the growth of GFCF in 2014, amidst at a more moderate rate of 3.7 per cent (2013: 10.0%). The positive drive in Services was impelled by the Finance, Insurance, Real Estate & Business Services with a double-digit growth of 19.8 per cent (2013: 16.9%) and Wholesale & Retail Trade which rose to 8.1 per cent. On the contrary, Other Services declined 6.5 per cent as compared to 2.3 per cent registered in the previous year.

Mining & Quarrying increased 4.7 per cent (2013: 6.2%) led by continuous investment spending in oil and gas mining activities.

Manufacturing rose to 7.5 per cent as compared to 5.2 per cent in 2013. The better performance of Manufacturing was underpinned by the Petroleum, Chemical, Rubber and Plastic products which accelerated to 10.7 per cent (2013: 1.6%). In addition, Food, Beverages and Tobacco remained resilient with a growth of 11.1 per cent while Electrical, Electronic & Optical products and Transport Equipment moderated to 4.6 per cent (2013: 7.5%).

Agriculture posted a growth of 7.2 per cent attributed by positive momentum of Rubber & Oil Palm and Livestock & Fishing. Meanwhile, Construction rose to 8.2 per cent in 2014. 

GFCF BY TYPE OF ASSETS

Structure surged to 9.9 per cent and continued as the prime mover with a share of 53.2 per cent (Chart 2). ICT Equipment and Other Machinery & Equipment grew 2.7 per cent which was propelled by expenditure on Other Machinery Equipment. Nevertheless, the contraction in Transport Equipment at 10.6 per cent (share: 10.2%) has weighed down the overall performance of GFCF.