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Overview - MPC

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2009<br />

Productivity Performance<br />

Figure 5.1: Growth in Land Productivity, 2005-2009<br />

CHAPTER 5<br />

• Productivity at the farm level can be<br />

measured in terms of land, labour and<br />

capital productivity. Land productivity<br />

is measured in terms of output per<br />

hectare, labour productivity measures<br />

the output per worker while capital<br />

productivity measures the output per<br />

ringgit investment.<br />

Land Productivity<br />

◦◦<br />

Land productivity grew by 0.8%<br />

in 2009 (Figure 5.1). The lower<br />

productivity growth as compared<br />

with previous year was due to<br />

adverse weather condition and<br />

tree stress which affected output.<br />

Production is anticipated to improve<br />

in the future with more immature<br />

areas being ready for harvesting.<br />

Labour Productivity<br />

◦◦<br />

Labour productivity also grew by<br />

0.4% in 2009 (Figure 5.2). The<br />

lower growth in productivity was due<br />

to lower yield caused by adverse<br />

weather condition. Productivity is<br />

expected to improve with more area<br />

being harvested in the near future.<br />

Computed from:<br />

- Ministry of Agriculture and Agro-based Industry,<br />

Malaysia<br />

Figure 5.2: Growth in Labour Productivity, 2005-2009<br />

Computed from:<br />

- Ministry of Agriculture and Agro-based Industry,<br />

Malaysia<br />

Figure 5.3: Growth in Capital Productivity, 2005-2009<br />

Capital Productivity<br />

◦◦<br />

Productivity growth of capital<br />

registered a decrease by 2.5% in<br />

2009 (Figure 5.3). The unfavourable<br />

growth was due to substantial<br />

capital investment being channelled<br />

to modernise agriculture sector<br />

as part of the stimulus package<br />

Computed from:<br />

- Ministry of Agriculture and Agro-based Industry,<br />

Malaysia<br />

72<br />

PRODUCTIVITY REPORT 2009

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