Overview - MPC

2009
CHAPTER 3
International Productivity
Comparison of Selected Services
Sub-sectors
• In 2009, Malaysia’s services sector
performed better than services sector
of Singapore, Hong Kong and Republic
of Korea. Malaysia’s services sector
recorded 1.1% productivity growth as
compared with Singapore, Hong Kong
and Republic of Korea which registered
contraction at 4.8%, 2.4% and 0.6%
respectively.
Table 3.1: Productivity Growth in the Services Sector
for Selected Asian Countries, 2009
Country
Malaysia
Singapore
Hong Kong
Republic of Korea
Indonesia
Growth (%)
1.13
-4.82
-2.36
-0.60
5.82
Computed from:
- Economic Reports, Ministry of Finance, Malaysia
- Economic Survey of Singapore, Ministry of Manpower, Singapore
- Hong Kong in Figures, 2010 Edition, Census and Statistics Department
of Hong Kong.
- Asian Development Bank
- Statistics Department of Indonesia
• The better performance of the services
sector in Malaysia was contributed by
effective Government policies such as
introduction of stimulus packages which
has resulted an increased in domestic
demand.
Total Factor Productivity
• During the period 2000-2009, the
services sector registered a TFP growth
of 1.7%. The contribution of TFP growth
to the services sector output was
26.5% while contributions from labour
and capital were 37.5% and 36.0%
respectively (Table 3.2).
• Within the services sector, trade subsector
recorded the highest TFP
growth of 3.1%, contributing 51.5%
to output growth. The contributions
from labour and capital were 33.9%
and 14.7% respectively. The high
TFP growth was attributed to factors
such as innovative marketing strategy,
upgrading business transaction based
on real-time information and also
competitive business environment from
the participation of foreign investors in
local trade activities (Figure 3.5).
Table 3.2: TFP Growth and Contribution
(2000-2009)
Services Sub-
Sector
Services
Trade
Finance
Transport
Utilities
TFP
Growth
(%)
1.65
3.14
3.09
2.12
0.67
Contribution to Output
TFP
(%)
26.50
51.47
40.36
34.06
16.46
Computed from:
- Economic Report, Ministry of Finance, Malaysia
- Economic Planning Unit, Malaysia
- Department of Statistics, Malaysia
Growth
Capital
(%)
36.04
14.65
29.94
31.63
40.32
Labour
(%)
37.46
33.88
29.69
34.31
43.21
Figure 3.5: Contribution to Output Growth for
Trade Sub-Sector
TFP Capital Labour
33.88%
14.65%
51.47%
Computed from:
- Economic Report, Ministry of Finance, Malaysia
- Economic Planning Unit, Malaysia
- Department of Statistics, Malaysia
40
PRODUCTIVITY REPORT 2009