Terengganu contributes around 2.5% towards national gross domestic product (GDP). In 2019, the state’s real GDP grew at a faster pace of 3.3% (2018: 2.5%) due to broad-based growth buoyed by the services and construction sectors. Household income growth has been strong; over the 2016-2019 period, it came in at 5.8% p.a. on a compounded annual growth rate (CAGR) basis, the fastest in Malaysia.
Terengganu received RM7.7 billion in approved manufacturing investments between 2016 and 2019. During the period, 78.1% of investments were foreign while the rest were domestically sourced. Out of the RM6.0 billion in foreign investments, a significant 71.5% was from China, while Indonesia and France contributed 9.5% and 9.3%. By administrative district, Kemaman was the largest beneficiary of manufacturing investments, followed by Besut, Dungun and Hulu Terengganu.