In 2023, the business services industry contributed 1.8 units to Malaysia's GDP. The past two years witnessed significant declines: a -28% reduction in 2022 and -16.7% in 2023. Over the past 5 years, the industry experienced an average annual contraction of -9.71%, reflecting a sharp downward trajectory which started post-2019. The forecast predicts a continuation of this decline, with an ultimate 40% reduction by 2028 compared to 2023 levels.
Anticipated trends to watch for include potential shifts towards technology-driven business services, escalated by digital transformations, as well as the impact of global economic conditions on outsourcing and professional services demand.
