COMPILATION OF GDP BY INCOME
APPROACH & ACCOUNTS FOR
HOUSEHOLD SECTOR
Department of Statistics, Malaysia
March 2012
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CONTENTS
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Introduction
GDP Income Approach By Institutional Sector
Data sources
Methodology
Institutional sectors in Malaysia
Sequence of the accounts
INTRODUCTION
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GDP by Income approach
 By Institutional sector and kind of economic activity
 By Institutional Sector:
• Can be seen through the compilation of
Distribution and use of Income Accounts and
Capital Accounts.
• Based on Sequence of Account in current prices
at annual basis
 By Kind of economic activity
• To complement the production and expenditure
approach
• To see the distribution of value added by various
economic activity
• At annual basis in current prices
GDP INCOME APPROACH BY
INSTITUTIONAL SECTOR
Statistics compiled by
Central Bank on CB,
FC, MB, leasing &
factoring
Annual surveys by
DOSM eg. EC
BOP statistics
from DOSM
DATA
SOURCES
Annual reports
from govt.
agencies
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Insurance reports
by Central Bank
Annual reports from
individual companies
METHODOLOGY
 The compilation is based on the concepts and methodology
outlined in the United Nations publication entitled `System
of National Accounts 1993’ (SNA 1993).
 compilation presents the sequence of accounts from
production account to capital account.
 These accounts show how :
production gives rise to income
income is distributed & redistributed
income is used for consumption or
saved
saving is translated into fixed capital
formation and net borrowing or lending
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INSTITUTIONAL SECTORS IN
MALAYSIA
MALAYSIA
(TOTAL ECONOMY)
FINANCIAL
CORPORATIONS
BANKS
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OTHER FINANCIAL INSURANCE CO.
CORPORATIONS & PENSION FUNDS
PUBLIC
PUBLIC
PUBLIC
PRIVATE
PRIVATE
PRIVATE
NON-FINANCIAL
CORPORATIONS
GOVERNMENT
SECTOR
PUBLIC
FEDERAL
PRIVATE
STATE
LOCAL
HOUSEHOLD AND
NON-PROFIT ORG.
REST OF
THE WORLD
SEQUENCE OF THE
ACCOUNTS
Production account
Generation of income account
Allocation of primary income account
Secondary distribution of income account
Redistribution income in kind account
Use of disposable income account
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Use of adjusted disposable income account
Capital account
COMPILATION FRAMEWORK
Total
ROW Economy
Production
Account
Primary
Distribution of
Income
Account
Secondary
Distribution of
Income
Account
Use of Income
Account
Capital Account
NFC
Pub
Pri
FC
Pub
GOV
Pri
Fed
State Local
Household
& NPISH
CAPITAL ACCOUNT
 Capital account shows saving as a source of funding
for capital formation
 4 categories of changes in assets are distinguished in
the capital account:
gross fixed capital formation
changes in inventories
acquisition less disposal of valuables
acquisition less disposal of non-produced
non- financial assets
PRODUCTION ACCOUNT
 first account in the sequence of accounts
 records the activity of producing goods and
services
 calculates gross value added by subtracting
intermediate consumption measured at
purchaser’s prices from output measured at basic
prices
PRIMARY DISTRIBUTION OF
INCOME ACCOUNT
 Consists of two consecutive accounts:
generation of income account
allocation of primary income account
 Compensation
of
employees
includes
the
remuneration, in cash or in kind, payable by an
enterprise to an employee in return for work done
during the accounting period
SECONDARY DISTRIBUTION OF
INCOME ACCOUNT
 Consists of two consecutive accounts:
- secondary distribution of income account
- redistribution of income in kind account
 3 main kinds of current transfers are:
- current taxes on income, wealth, etc
- social contributions and benefits
- other current transfers
USE OF INCOME ACCOUNT
 There two version of the use of income accounts:
use of disposable income account
use of adjusted disposable income account
 Transactions on final consumption of goods and
services for which a sector is the ultimate bearer of
the expense even though it is not the sector to which
the goods and services are delivered. 3 types of final
consumption expenditure:
- household final consumption expenditure
- final consumption expenditure of NPISHs
- government final consumption expenditure
Thank you…
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