Malaysia - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Malaysia was 19.73 as of 2020. Its highest value over the past 60 years was 43.64 in 1995, while its lowest value was 11.85 in 1960.

Definition: Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 1993 SNA, net acquisitions of valuables are also considered capital formation.

Source: World Bank national accounts data, and OECD National Accounts data files.

See also:

Year Value
1960 11.85
1961 13.55
1962 16.45
1963 19.03
1964 18.76
1965 18.39
1966 18.10
1967 16.38
1968 16.37
1969 13.59
1970 17.51
1971 20.75
1972 21.53
1973 23.64
1974 28.49
1975 23.38
1976 21.84
1977 23.85
1978 26.67
1979 28.91
1980 30.42
1981 34.99
1982 37.31
1983 37.57
1984 33.56
1985 27.58
1986 25.99
1987 23.08
1988 26.36
1989 29.87
1990 32.36
1991 37.79
1992 35.36
1993 39.18
1994 41.20
1995 43.64
1996 41.48
1997 42.97
1998 26.67
1999 22.38
2000 26.87
2001 24.40
2002 24.78
2003 22.76
2004 23.05
2005 22.40
2006 22.70
2007 23.41
2008 21.46
2009 17.84
2010 23.39
2011 23.19
2012 25.75
2013 25.94
2014 24.98
2015 25.42
2016 26.00
2017 25.55
2018 23.90
2019 21.04
2020 19.73

Limitations and Exceptions: Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total. Data on capital formation may be estimated from direct surveys of enterprises and administrative records or based on the commodity flow method using data from production, trade, and construction activities. The quality of data on government fixed capital formation depends on the quality of government accounting systems (which tend to be weak in developing countries). Measures of fixed capital formation by households and corporations - particularly capital outlays by small, unincorporated enterprises - are usually unreliable. Estimates of changes in inventories are rarely complete but usually include the most important activities or commodities. In some countries these estimates are derived as a composite residual along with household final consumption expenditure. According to national accounts conventions, adjustments should be made for appreciation of the value of inventory holdings due to price changes, but this is not always done. In highly inflationary economies this element can be substantial.

Statistical Concept and Methodology: Gross domestic product (GDP) from the expenditure side is made up of household final consumption expenditure, general government final consumption expenditure, gross capital formation (private and public investment in fixed assets, changes in inventories, and net acquisitions of valuables), and net exports (exports minus imports) of goods and services. Such expenditures are recorded in purchaser prices and include net taxes on products.

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts