Overview - MPC

PRODUCTIVITY PERFORMANCE OF THE
SMALL AND MEDIUM INDUSTRIES (MANUFACTURING SECTOR)
Overview
• The Small and Medium Industries
(SMIs) assumed an important role
in Malaysia industrial development
through supply linkages and provide
the foundation for strengthening the
nation’s industrial base. The
development of competitive and
resilient SMIs is a key component of
the Government’s economic growth
strategy as outlined in the Ninth
Malaysia Plan (9MP) and the Third
Industrial Master Plan (IMP3).
• The key strategies to enhance the
capabilities of the SMIs include
outsourcing programmes that
facilitate technological transfer,
skills development and marketing,
inter-firm linkages to enhance SMIs
competitiveness; and entrepreneurship
and skills development programmes.
• In 2010, SMIs is targeted to contribute
37% to the country’s GDP. In terms
of export, SMIs is to contribute 22%
of total export of the economy
Figure 8.1: SMIs Contribution to the Economy
Source: SME Annual Report, 2008
(Figure 8.1). This will be achieved
through the modernisation of the
sector by investing in human capital,
advanced technology and effective
marketing strategies to cater for
domestic and external markets. To
sustain further growth of the sector,
the Government has allocated RM11.8
billion for SMIs development under the
second economic stimulus package.
Table 8.1: Total Output, Added Value and Employment of SMIs
Level*
Contribution to
Manufacturing Sector (%)
Growth
(%)
2008
2009
2008
2009
2009
Total Output
100,010
100,580
30.89
31.61
0.57
Added Value
20,522
20,444
26.53
26.70
-0.38
Employment
421,186
422,155
31.78
31.89
0.23
* Value Levels for Total Output and Added Value are in RM Million
Computed from:
- Annual Survey of Manufacturing Industries, Department of Statistics, Malaysia
108
PRODUCTIVITY REPORT 2009