Malaysia’s Services Volume Index Grows 6.5% in Fourth Quarter of 2025
PETALING JAYA: Malaysia’s services sector maintained strong growth momentum in the fourth quarter of 2025, with the Services Volume Index expanding by 6.5 per cent year-on-year, reflecting broad-based improvements across all major service segments.
According to the latest report released by the Department of Statistics Malaysia (DOSM), the overall index rose to 167.7 points, supported by resilient domestic demand, sustained tourism-related activity and continued expansion in digital and logistics services.
Chief Statistician Mohd Uzir Mahidin said the robust performance was driven primarily by the wholesale and retail trade, food and beverage, and accommodation segment, which recorded growth of 6.6 per cent.
He noted that consumer spending and tourism-related demand remained key factors underpinning the segment’s performance toward the end of the year.
This was followed by the information and communication, and transportation and storage segment, which grew by 8.7 per cent. Meanwhile, business and financial services posted more moderate growth of 3.5 per cent, while other services recorded the strongest expansion at 10.3 per cent.
Digital and Tourism Activities Support Expansion
The wholesale and retail trade, food and beverage, and accommodation segment recorded an index of 167.9 points, supported by growth in wholesale and retail trade at 5.8 per cent, food and beverage services at 9.4 per cent, and accommodation services, which surged by 15.1 per cent.
Mohd Uzir said wholesale trade remained the main contributor, rising 6.6 per cent to 155.5 points, followed by retail trade at 4.6 per cent and motor vehicles at 8.4 per cent. These gains were driven by sustained consumer demand and increased tourism-related activities.
The information and communication, and transportation and storage segment registered an index of 189.0 points with growth of 8.7 per cent. Information and communication services expanded by 8.8 per cent, while transportation and storage grew by 8.5 per cent.
According to DOSM, the strong performance was supported by ongoing development in digital infrastructure and data centres, which boosted demand for digital services, internet connectivity and logistics support.
Business and financial services recorded an index of 155.0 points with growth of 3.5 per cent, driven by professional services as well as administrative and support services, which increased by 7.0 per cent. The real estate subsector grew by 8.0 per cent, while finance and insurance recorded a modest increase of 0.5 per cent.
Other services expanded by 10.3 per cent to 146.6 points, supported by strong growth in arts, entertainment and recreation, as well as personal services and other activities, which rose by 11.8 per cent. Private health services and private education recorded growth of 10.3 per cent and 8.8 per cent respectively.
Mohd Uzir added that the expansion in arts, entertainment and recreation was driven by higher participation in leisure activities, while personal services benefited from continued demand for laundry, beauty and personal care services.
On a quarter-on-quarter basis, the Services Volume Index increased by 1.9 per cent compared with the third quarter of 2025, with all major segments posting positive growth. After seasonal adjustment, the index recorded a moderate increase of 0.5 per cent.
For the full year, the Services Volume Index rose by 5.8 per cent to 162.9 points in 2025, up from 154.0 points in 2024, indicating a broader-based economic recovery. DOSM also noted that data for the first to third quarters of 2025 were revised following the inclusion of updated information related to the data centre industry within the information and communication subsector.
-wilayah.com.my
