KUALA LUMPUR, Sept 11 — Selangor’s gross domestic product (GDP) is expected to grow at a positive rate of between 5.0 and 5.8 per cent next year, reaching an estimated value of RM479 billion.
Universiti Putra Malaysia’s (UPM) School of Business and Economics senior lecturer Muhammad Daaniyall Abd Rahman said the projection reflects a slightly slower pace than in previous years, owing to Selangor’s already mature economy.
The construction sector is expected to record the highest growth rate at between 5.8 and 6.8 per cent, followed by the services sector at between 5.4 and 6.3 per cent.
“Selangor’s economy is now in a stable phase as it has reached maturity. Among countries with mature economies are the United Kingdom, the United States and European nations.
“Hence, Selangor needs a new approach driven by productivity, such as through talent and skills development,” he said when presenting the 2026 Selangor Economic Outlook Report.
The inaugural report commissioned by the state government was presented to Menteri Besar Dato’ Seri Amirudin Shari, state leaders and other relevant stakeholders during the 2026 Selangor Budget engagement session at the Sime Darby Convention Centre here today.
Daaniyall said the global economy is expected to grow at a moderate pace next year due to various factors, while stressing the need for Selangor to adapt and explore new opportunities.
Among the strategic opportunities the state should pursue, he said, are advancing artificial intelligence (AI) technology, transitioning to a green economy, expanding digital economy services, and developing Asean's blue economy framework.
“The blue economy is Asean's new growth engine. The proposed capacity expansion at Port Klang through the construction of a new terminal at Pulau Carey and Westport is expected to support this growth,” he said.
Daaniyall also commended Selangor for allocating 43.7 per cent of its revenue for development expenditure, compared to the federal government’s 21 per cent allocation for the same sector.
However, he suggested that the state establish a research and development to GDP framework to support the federal government in funding development spending.
