Why did GOS decline in the Manufacturing sector despite CE growth?

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Gross Operating Surplus Decline in Manufacturing Sector Not Explained by Provided Data

The provided data indicates that Gross Operating Surplus (GOS) in Malaysia's manufacturing sector saw a decline of 0.5 per cent in 2025, even as Compensation of Employees (CE) in the same sector experienced growth of 2.5 per cent. The specific reasons for this divergence, where operating surplus decreased while employee wages increased, are not detailed within the available information.
Sectoral Performance Contrasts

While the manufacturing sector's GOS contracted, other key sectors showed positive growth. The Services sector's GOS rose by 5.2 per cent, and the Agriculture sector recorded a 5.0 per cent increase. The Construction sector also saw its GOS grow by 2.1 per cent. This contrasts with the manufacturing sector's performance, which experienced a 0.5 per cent decrease in GOS.
Employee Compensation Trends

In contrast to the GOS trend, Compensation of Employees across various sectors demonstrated growth. Nationally, CE grew by 5.8 per cent in 2025, contributing 33.9 per cent to the overall GDP. Within the manufacturing sector specifically, CE increased by 2.5 per cent, aligning with broader labour market improvements such as a 1.3 per cent rise in employment and a 4.0 per cent expansion in labour productivity per employment.
Factors Influencing CE Growth

The increase in Compensation of Employees nationally was attributed to several factors, including the revision of the minimum wage to RM1,700 and the implementation of the Public Service Remuneration System (SSPA). These national-level influences likely contributed to the observed rise in CE within the manufacturing sector, irrespective of its GOS performance.

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Why did GOS decline in the Manufacturing sector despite CE growth?

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