PRODUCTIVITY REPORT
2010/2011
STATUTORY REQUIREMENTS
In accordance with Section 7 of the Malaysia Productivity Council
(Incorporation) (Amendment) Act 1991, Malaysia Productivity Corporation
hereby publishes and submits to the Minister of International Trade and
Industry the status of productivity in Malaysia.
Productivity Report 2010/2011
y 18th Edition.
y Report jointly prepared by MPC, partners and experts in industry, government
agencies and academia.
y Consist of 9 chapters:
y Chapter 1: Productivity Performance of Malaysia
y Chapter 2: Total Factor Productivity
y Chapter 3: Productivity Performance of the Services Sector
y Chapter 4: Productivity Performance of the Manufacturing Sector
y Chapter 5: Productivity Performance of the Agriculture Sector
y Chapter 6: Productivity Performance of the Construction Sector
y Chapter 7: Productivity Performance of the Public Sector
y Chapter 8: New Sources of Growth Based on 12 National Key Economic Areas
y Chapter 9: High Impact Productivity Drivers
Productivity Performance of Malaysia
• Malaysia gains
momentum towards
high income economy
with strong growth in
GDP and productivity in
2010.
Source: Department of Statistics & Economic Report, various
issues
Productivity Growth of Malaysia and selected OECD Countries, 2010
• Matured economies recorded lower productivity growth than Malaysia
Source: - Economic Report, Ministry of Finance, Malaysia, various issues
- OECD Economic Outlook, Vol. 86 Database
- National Account of OECD Countries, Detailed Tables, Vol. ii 2009
Productivity Growth of Malaysia and selected Asian Countries, 2010
• Economic Expansion & Dynamism in most developing Asia countries
accounted for the higher productivity growths
Source: - Economic Report, Ministry of Finance, Malaysia, various issues
- OECD Economic Outlook, Vol. 86 Database
- National Account of OECD Countries, Detailed Tables, Vol. ii 2009
Productivity Level & Growth of Malaysia and Selected Countries, 2010
Productivity
Growth
4.1
3.2
6.0
1.8
11.8
8.2
4.9
5.8
5.9
10.0
4.0
2.8
6.7
Relative
Productivity
Level
5.9
5.9
4.7
4.4
4.0
3.2
2.5
1.0
0.4
0.3
0.2
0.2
0.2
Productivity Performance of the Economic Activities, 2010
• Higher productivity
growth driven mainly
by improvement in
external demand,
growing domestic
demand and
expanding domestic
production
Economic Activities
Agriculture
Mining Manufacturing
Construction
Services Utilities
Wholesale and retail
Accom. and restaurant
Transport and storage
Communication
Finance and insurance
Real estate and business services
Other Services
Malaysia Level
(RM)
27,680
948,181
54,392
23,898
50,967
163,423
42,209
16,868
41,887
130,459
95,436
203,718
26,112
51,591
Source: Department of Statistics & Economic Report, various issues
Growth
(%)
1.82
0.13
9.42
4.64
4.74
5.55
5.18
3.81
5.73
6.63
4.25
5.89
1.67
5.78
Productivity Performance of the Manufacturing Sector
• Efficient and effective
manufacturing activities contribute
to the high productivity growth and
turned around the productivity
performance to be almost at the
pre-economic crisis level
Source: Department of Statistics & Economic Report,
various issues
Productivity Performance of the Services Sector
• Services productivity grew
stronger with the adoption of
innovative service business
models, upgraded services
information and performance
systems, flexible delivery
process and high utilisation of
ICT
Source: Department of Statistics & Economic Report, various issues
Productivity Performance of the Agriculture Sector
• Agriculture productivity
continued to grow steadily,
supported mainly by the high
commodity prices.
Source: Department of Statistics & Economic Report, various issues
Productivity Performance of the Construction Sector
• Productivity continued to grow
steadily in construction,
sustained by high activities in
civil engineering, special trade
and implementation of IBS
Source: Department of Statistics & Economic Report, various issues
Productivity Performance in 6 Services Sub-sectors in the ETP (NKEAs)
Wholesale and Retail Services
Year
Productivit
y
Growth (%)
Communication Technology (ICT) Services
2006
2007
2008
2009
2010
Year
2006
2007
2008
2009
2010
29.18
14.38
8.85
‐5.31
6.01
Productivity
Growth (%)
3.18
‐2.78
4.53
4.62
6.32
Source: Department of Statistics
Productivity Performance in 6 Services Sub-sectors in the ETP (NKEAs)
Business & Professional Services
Year
Productivit
y
Growth (%)
Tourism Services
2006
2007
2008
2009
2010
5.16
0.97
1.46
2.53
5.88
Source: Department of Statistics
Year
Productivit
y
Growth (%)
2006
2007
2008
2009
2010
2.62
10.06
7.50
1.95
3.96
Productivity Performance in 6 Services Sub-sectors in the ETP (NKEAs)
Private Education Services
Healthcare Services
Year
Productivit
y
Growth (%)
2006
2007
2008
2009
2010
‐1.65
7.10
5.05
3.21
3.57
Source: Department of Statistics
Year
Productivit
y
Growth (%)
2006
2007
2008
2009
2010
13.51
10.06
5.07
4.03
4.93
Productivity Performance in Manufacturing Industries in the ETP
(NKEAs)
Electrical & electronics
Palm oil
Refined Petroleum products
Computed from: Annual Survey of Manufacturing Industries,
Department of Statistics, Malaysia
Productivity Performance in Logistics Services in the GTP
Year
Productivit
y Growth (%)
2006
2007
2008
2009
2010
12.50
4.96
3.97
‐1.09
5.60
Source: Department of Statistics
Total Factor Productivity Performance, 2006-2010
• Productivity contributed
2 folds to GDP as
compared to
employment, generated
from the equal
contributions in
quantitative and
qualitative inputs factors
Source: Department of Statistics & Economic Report, various issues
TFP, Capital and Labour Growth (%)
• Even though GDP
growth was lower in
2006-2010, TFP is
catching up with
capital in contributing
to GDP growth
Source: Department of Statistics & Economic Report,
various issues
TFP of the Economic Sectors, 2001-2010
Source: Department of Statistics & Economic Report, various issues
TFP Growth of the Selected Countries
• Malaysia and
China were able to
sustain TFP growth
during the last 3
years period
Source: The Conference Board Total Economy Database, January 2011
Productivity Outlook for 2011
• Productivity will grow
at 4.7%, largely
contributed by 4
leading activities in
manufacturing,
utilities, transport and
communication
Source: Department of Statistics & Economic Report, various issues