Malaysia’s workforce continues to hold its ground in a shifting global economy. Malaysia’s statistics department says workers were more productive in the second quarter of 2025, with output per hour up 3.4% to RM43.2.
It may read like a routine update, but there’s more behind it, proof of resilience, growth in key industries, and the way workers in Malaysia are finding ways to adapt.
Where Growth is Coming From
Among the sectors, construction continues to be the star performer, with productivity per hour worked climbing 9.3%. This comes on top of its double-digit rise in the first quarter, showing just how central the sector is to Malaysia’s economic pulse.
Other sectors also chipped in:
- Manufacturing grew 3.7%, supported by strong gains in food processing, petroleum, and electronics.
- Services rose 3.6%, led by real estate, transportation, and business services.
- Agriculture saw a healthy 3.5% rebound from its near-flat performance earlier this year.
- Mining & Quarrying, however, slipped again, with productivity down 4.6%.
Within the services sector, real estate and business services surged 9.1%, while transportation and storage expanded 7.1%. Even traditional players like wholesale and retail trade posted a steady 3.5% increase.
These results point to one thing: Malaysia’s economy is no longer being carried by a single pillar. Instead, it’s diversifying, with multiple industries pushing productivity forward.
How Workers Are Contributing
When productivity is measured by value added per employee, the numbers tell an equally encouraging story. Each employed person contributed an average of RM24,887 in Q2 up 2.8% from the previous quarter. Employment itself also grew by 1.6%, bringing the national workforce to 16.8 million people.
The construction industry once again led the way, with an 11% jump. But the services sector also shone in areas such as transportation, food and accommodation, and other services, where efficiency improvements are steadily taking hold.
This blend of expansion in both headcount and productivity shows that Malaysia is not just hiring more, it’s getting more value out of every hour worked.
What This Means for HR and Business Leaders
For HR leaders, the implications go far beyond statistics. The message is clear: productivity growth now hinges on skills, not just scale.
As DOSM Chief Statistician Dato’ Sri Dr. Mohd Uzir Mahidin noted, future gains will rely on continuous investment in digital transformation, communication, and analytics. In other words, the companies that commit to upskilling their people today will be the ones driving Malaysia’s growth tomorrow.
This aligns with what many organisations are already seeing on the ground—employees who are digitally enabled, adaptable, and trained for cross-sector roles tend to deliver stronger performance.
Building a Workforce for the Future
Malaysia’s second quarter results highlight an important truth: the country’s competitiveness will increasingly depend on how quickly its workforce can adapt to new realities.
For business and HR leaders, the message is pretty simple: people drive productivity. When workers are given chances to learn new skills, when teams can adjust as industries shift, and when workplaces actually encourage new ideas, that’s when numbers improve.
The 3.4% bump in productivity is good news. But it won’t last on its own. It needs follow-through, and that means keeping people at the center of every plan.
Moving Forward
These figures aren’t just about the economy. They’re a reminder that behind every percentage point are real workers putting in the hours.
The real test is whether Malaysia can keep this going. If companies keep investing in skills, tools, and their people, then the growth won’t just show up in the data—it’ll be felt in the strength of the workforce itself.
The real test is keeping this momentum alive. Conversations on productivity, technology, and workforce resilience will continue at RESA Thailand 2025, where business leaders and innovators will share how they’re preparing for the future.
