Overview - MPC

2009
Productivity of the Small and Medium Industries
In 2009, Small and Medium Industries (SMIs) contributed 31.6% to total manufacturing
output and 26.7% of total manufacturing added value. The sector contributed 31.9% of
total manufacturing employment. Productivity of the sector stood at RM48,428 recording
a decline of 0.6%. The sub-sectors that registered productivity growth were food products
and beverages, textiles, rubber and plastic products, wearing apparels and wood and
wood products. SMIs recorded a slight growth in capital intensity by 0.7% while capital
productivity declined by 1.1%. Labour cost competitiveness of the sector was sustained
as indicated by a marginal decline of 0.2% in unit labour cost. Labour cost per employee
grew by 0.5% while productivity contracted by 0.6%.
REPORT
HIGHLIGHTS
Outlook for 2010
The economy is poised to continue its growth momentum in 2010 with greater involvement
from the private sector. The economy is expected to achieve a productivity growth of more
than 3.0%. The manufacturing sector’s productivity is expected to improve by more than
2.3% supported by higher domestic consumption as well as the recovery of the exports
market.
The services sector is expected to continue its productivity growth momentum of more
than 4.1% benefiting from liberalisation, National Broadband Initiative and High Speed
Broadband Services. Trade, transport and finance sub-sectors are to lead the growth with
more than 4.5% expansion.
The agriculture sector is expected to post a productivity growth of more than 2.5%. The
sector is to leverage on large scale commercial farming, application of modern technology,
production of high quality and value added products, biotechnology and increase in the
use of ICT.
The construction sector is targeted to register a productivity growth of more than 1.8%.
The growth will be propelled by continued implementation of projects under the second
stimulus packages and the Ninth Malaysia Plan.
PRODUCTIVITY REPORT 2009
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