Malaysia's Corporate Profit Falls 6.9 Pct In 2020

Faizan Hashmi Published July 27, 2021 | 05:10 PM

KUALA LUMPUR, (UrduPoint / Pakistan Point News - 27th Jul, 2021 ) :Malaysia's gross operating surplus (GOS), which consists of corporate profits earned by firms, fell 6.9 percent last year on lower capacity of production, official data showed Tuesday.

The Department of Statistics Malaysia (DOSM) said in a statement that the economic downturn scenario in 2020 was a consequence of economic closure for containment measures such as full or partial lock-downs, physical distancing rules, bans on public gatherings and border closures, which led to a sudden stop in the mobility of individuals and non-essential business operations.

"The GOS slumped 6.9 percent which was the lowest since 2009. All sectors posted declines in GOS except for the agriculture sector," it said.

According to the DOSM, the decrease in GOS was influenced by the mining and quarrying sector which declined by 28.3 percent due to lower crude oil and natural gas prices.

As for the services sector, GOS fell 4.9 percent, dragged by wholesale and retail trade, food and beverage and accommodation activities.

The GOS of the manufacturing sector also shrank 4.4 percent due to a double-digit decline in petroleum, chemical, rubber and plastic and non-metallic mineral products, basic metal and fabricated metal products.

Meanwhile, GOS in the construction sector dropped by 15.7 percent, largely affected by the poor performance in civil engineering activities.

Nevertheless, GOS in the agriculture sector expanded 7.3 percent, supported by rubber, oil palm, livestock and other agriculture backed by higher commodity prices especially oil palm prices.

The GOS constituted 60.1 percent of Malaysia's total economy in 2020, with the services sector remaining a major contributor to the total GOS with a share of 56 percent.