KUALA LUMPUR: Corporate profits earned by companies or gross operating surplus (GOS) fell 6.9% last year due to declining production capacity as the country was hit by the Covid-19 pandemic, the statistics department reported.
Releasing the details of his approach to gross domestic product (GDP) income released on Tuesday, he said they include the income earned by all factors of production in an economy. They included compensation of employees (CO), GOS and taxes less subsidies on production and import components.
Chief statistician Datuk Seri, Dr Mohd Uzir Mahidin, said GDP at current prices contracted 6.4% last year compared to a 4.5% increase in 2019.
Thus, the CE, made up of salaries paid to employees, was also impacted by the recession and fell by 3% last year, the first time since the start of the series in 2005.
However, the share of CE in the total economy increased to 37.2% (2019: 35.9%) due to the decline in GOS.
“GOS, made up of corporate profits made by companies, fell 6.9% due to declining production capacity,” he said.
Mohd Uzir said the EC contracted by 3%, compared to an expansion of 4.8% in 2019, as all economic sectors contracted except the agricultural sector.
The most affected sector was the construction sector which fell by 18.2% (2019: 1.2%) due to the decline of all sub-sectors of construction activities.
Next is the service sector, where the EB fell by 1.4% (2019: 5.9%) due to the decline in the wholesale and retail trade, food and beverage and sub-sector. of accommodation.
The mining and quarrying sector contracted more sharply by 15.3% against a drop of 4.9% in 2019.
Mohd Uzir said the CE in manufacturing fell 0.8% (2019: 4.1%) due to the slowdown in electrical, electronic and optical products.
However, the EC of the agricultural sector increased by 2.7% (2019: 0.1%) due to oil palm and livestock activities.
He said the services sector CE was the largest contributor to Malaysia’s total CE total, accounting for 63.5% last year, manufacturing 22.6%, construction 7.9% and agriculture 4.1%.
The contraction in GDP last year was reflected in the performance of the GOS, collapsing 6.9% (2019: 3.7%), the lowest after 2009 (-12.6%). All sectors posted a decrease in GOS, with the exception of the agricultural sector.