9.5 percent to 20.2 percent. Overall, the entire services sector encompassing trade services, transport services, business services, and other services grew from 34.5 percent to 57.4 percent of aggregate output.

If one divides the period of 1987 to 2018 into three subperiods of about ten years each, one can show that real output growth was highest in the period between 1987 and 1997, with annual growth averaging around 8.2 percent (see Table 4). In the period from 1997 to 2007 and from 2007 to 2018, average annual growth in real output fell to 4.2 percent and 4.7 percent, respectively. Within these two periods, there were three disruptions in the Malaysian economy, caused by the Asian Financial Crisis in 1997 to 1998, the burst of the United States technology bubble in 2001 to 2002, and the Global Financial Crisis in 2007 to 2008. Figure 3 shows that these disruptions had significant but temporary impacts on growth in aggregate output. When the periods of crises are excluded, the average annual growth in real output for the three periods between 1987 and 1997, 1997 and 2007, and 2007 and 2018 were 8.2 percent, 6.2 percent, and 5.2 percent, respectively. These growth rates are higher than those that include the periods of crises. Nevertheless, the growth rates of the period between 1986 and 1997 were not again achieved thereafter.

**Figure 2: Sectoral share of total output, 1987-2018 Figure 3: Annual growth in real total output (%), 1987-2018**

|20<br>40<br>60<br>80<br>100<br>Share of total output (%)|2<br>4<br>6<br>8<br>10<br>12<br>wth in real output (%)||
|---|---|---|
|0|o||
|1987<br>1989<br>1991<br>1993<br>1995<br>1997<br>1999<br>2001<br>2003<br>2005<br>2007<br>2009<br>2011<br>2013<br>2015<br>2017|-2<br>0<br>nnual gr|1988<br>1990<br>1992<br>1994<br>1996<br>1998<br>2000<br>2002<br>2004<br>2006<br>2008<br>2010<br>2012<br>2014<br>2016<br>2018|
|Agriculture<br>Mining<br>Manufacturing|A||
|Construction<br>Trade<br>Transport|-4||
|Business<br>Other|-6||
|Source: Authors’ calculations based on data from DOSM<br>**Table 4: Average annual growth in output by sec**<br>**Average annual growth in output**<br> <br> <br>|Source:<br>**tor, 1987-**<br>**(%)**<br>|Authors’ calculations based on data from DOSM<br>**2018**<br>**Average annual growth in output**<br>**(excluding crisisyears)**<sup>**♠**</sup> **(%)**<br> <br> <br> <br>|
|**1987-1997**<br>**1997-2007**<br>**2007-2018**|1987-2018|**1987-1997**<br>**1997-2007**<br>**2007-2018**<br>1987-2018|
|Agriculture<br>1.1<br>2.7<br>2.0|_1.9_|1.2<br>4.1<br>1.9<br>_2.1_|
|Mining<br>3.8<br>2.1<br>-0.2|_1.8_|4.0<br>1.0<br>0.8<br>_2.1_|
|Manufacturing<br>13.9<br>5.1<br>3.9|_7.5_|14.3<br>8.7<br>4.9<br>_9.6_|
|Construction<br>13.1<br>-1.5<br>8.5|_6.8_|13.3<br>1.3<br>9.0<br>_9.0_|
|Trade<br>13.0<br>5.3<br>6.9|_8.3_|13.6<br>8.9<br>6.9<br>_10.1_|
|Transport<br>10.9<br>5.7<br>6.9|_7.8_|10.8<br>7.8<br>7.4<br>_8.9_|
|Business<br>14.6<br>6.2<br>5.7|_8.8_|14.2<br>7.9<br>5.2<br>_9.5_|
|Other<br>6.9<br>5.2<br>5.5|_5.9_|7.1<br>5.8<br>5.7<br>_6.3_|
|_Aggregate_<br>_8.2_<br>_4.2_<br>_4.7_|_5.7_|_8.2_<br>_6.2_<br>_5.2_<br>_6.7_|

Source: Authors’ calculations based on data from DOSM Note:<sup>**♠**</sup> The crisis years excluded are 1997-1999, 2001-2003, and 2008-2010.

10