Kelantan: Profile of the Darul Naim State, Economy and Handicrafts

Malaysia’s economy is usually told through the factory. Kelantan is the clearest exception: manufacturing accounted for only 4.7% of the state’s Gross Domestic Product in 2025 — the lowest share among the 13 states — while agriculture contributed nearly a fifth.

That figure, from the Department of Statistics Malaysia’s GDP by state dataset, explains a good deal else about this state: its population distribution, its employment patterns, and why its craft and performance heritage remains tied to household networks rather than large-scale industry.

Key facts

State capital	Kota Bharu
State title	Kelantan Darul Naim
Area	About 15,040 km²
Population (2025)	About 1.91 million
Head of state	Sultan of Kelantan
Administrative division	10 districts and 1 sub-district (Lojing)
GDP (2025)	RM29.8 billion, constant 2015 prices
Largest sector	Services (71.8%), agriculture (19.8%)

Geography and administration

Kelantan sits in the northeast of Peninsular Malaysia, bordering Thailand to the north and facing the South China Sea to the northeast, with an area of about 15,040 square kilometres according to the National Security Council (Majlis Keselamatan Negara, MKN).

Its name is linked to two commonly cited explanations — the word for “lightning,” and forests of the gelam tree (Melaleuca leucadendron). The state’s motto is “Berserah Kepada Tuhan” (“Submission to God”).

The state’s administration is divided into ten districts (jajahan): Kota Bharu, Bachok, Pasir Mas, Pasir Puteh, Tumpat, Tanah Merah, Machang, Kuala Krai, Gua Musang and Jeli — plus the sub-district (jajahan kecil) of Lojing. DOSM’s district-level population data lists all eleven units separately.

Population distribution is highly uneven. In 2025, Kota Bharu district was home to about 590,100 people, followed by Pasir Mas (242,700) and Tumpat (191,200), while Jeli (58,200) and Lojing (11,700) sat at the other end — consistent with the divide between the densely populated coastal plain and the hilly interior.

Kota Bharu

Kota Bharu is the state capital and, according to its local authority, the main centre of administration, commerce, finance, culture and education for the entire state.

The city’s administrative area covers 115.64 square kilometres. A royal settlement was founded here in 1844; municipal status was granted in 1936, it was reorganised as a town board in 1971, and its current municipal council status was granted in 1978. The local authority is officially known as the Kota Bharu Islamic City Municipal Council (Majlis Perbandaran Kota Bharu Bandar Raya Islam, MPKB-BRI).

Economic structure

Kelantan’s GDP was worth RM29.8 billion in 2025 at constant 2015 prices, growing 4.1% from RM28.6 billion in 2024.

Sector	Share of state GDP (2025)
Services	71.8%
Agriculture	19.8%
Manufacturing	4.7%
Construction	2.0%
Mining and quarrying	1.5%

Two numbers in that table stand out against other states. The agriculture share of 19.8% is the second highest in Malaysia after Pahang (22.4%), far above the average for industrialised states. The manufacturing share of 4.7%, meanwhile, is the lowest among the 13 states — compare Penang (47.3%) or Johor (28.0%).

This structure also shows up in household data. Kelantan’s median monthly household income was RM4,083 in 2024 (mean RM5,265), the lowest figure among the states and federal territories in that survey year.

For national context on how these figures are calculated and compared, see Malaysia’s GDP overview.

Culture, performance and handicrafts

Government sources consistently associate Kelantan with a cluster of traditional craft and performance forms: the wau bulan (moon kite), wayang kulit (shadow puppetry), wood carving, silverwork, batik and songket weaving.

Mak yong theatre holds the most formal international recognition. UNESCO listed it on the Representative List of the Intangible Cultural Heritage of Humanity in 2008, following a 2005 proclamation, and describes it as a tradition originating in villages in Kelantan. UNESCO also notes that the form is passed down largely by oral transmission and faces a decline in the number of young successors.

The state’s geographic position has also shaped its material culture. Proximity to Thailand has influenced the local dialect, cuisine and dress — a feature noted directly in government explanatory material.

Handicrafts here remain a workshop- and household-based activity rather than factory production. That is one reason they show up in the statistics as part of trade and tourism — see Malaysia’s tourism sector — rather than as manufacturing.

State institutions

The head of state is the Sultan of Kelantan, one of the Malay Rulers who sit on the Conference of Rulers (Majlis Raja-Raja). According to the Keeper of the Rulers’ Seal (Pejabat Penyimpan Mohor Besar Raja-Raja), the reigning Sultan is His Royal Highness Sultan Muhammad V, who ascended the throne on 13 September 2010.

Day-to-day executive power is exercised by the state government, headed by a Menteri Besar together with members of the State Executive Council (Ahli-Ahli Majlis Mesyuarat Kerajaan), with a State Legislative Assembly (Dewan Undangan Negeri) as the state legislature. Land administration and district affairs are handled through the Land and District Office (Pejabat Tanah dan Jajahan) in each district. Kelantan is also represented in the Federal Parliament — see the structure of Malaysia’s Parliament.

Common misconceptions

“Kelantan doesn’t have a long urban history.” This area is among the oldest continuously inhabited parts of Peninsular Malaysia, and the archaeological sites around it are linked to early political networks such as Langkasuka.

“Kota Bharu’s population is the city’s population.” Two different figures are often conflated: the 115.64 km² MPKB-BRI administrative area, and the much larger Kota Bharu district, with about 590,100 people in 2025.

“The state’s economy is agriculture alone.” Agriculture is indeed large by Malaysian standards, but services still make up more than two-thirds of the state economy at 71.8%.

“State GDP figures can be compared directly with nominal figures.” The state series used here is at constant 2015 prices. Comparing it directly with nominal values would give a misleading picture.

What’s next

Check the latest figures at the OpenDOSM data catalogue before citing any number here — the state series is revised annually. For administrative matters, services and official state announcements, refer to the Official Portal of the Kelantan State Government.

This article remains a draft until a human reviewer confirms the items listed under “verification needed”.