chapter 6 - Malaysia Productivity Corporation ( MPC)

Figure 6.4: Productivity Level of Services Sector, 2007-2011
RM Thousand
250.0
200.0
150.0
100.0
50.0
Computed from: Department of Statistics, Malaysia
Economic Report, Ministry of Finance, Malaysia
5.3%, contributing 74.7% to output growth. The
contribution of capital and labour were 7.0 %
and 18.3% respectively. The wholesale and retail
trade services has seen many changes in recent
years, driven mainly by technological and market
development. The high TFP contributions were
attributed mainly to the widespread adoption
of productivity enhancing technologies (for
example, bar coding, paperless pick systems and
automatic re-ordering processes) which moved
the sub-sector from a storage-based system to a
CHAPTER 6
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2007 2008 2009 2010 2011
Services 45.585 48.058 49.013 51.407 53.938
Utilities 156.005 157.196 155.990 164.573 168.851
Wholesale and retail 36.552 40.135 40.705 42.856 45.254
Accom. and restaurant 15.511 16.118 16.214 16.844 17.538
Transport and storage 40.082 41.046 39.693 41.980 43.775
Communication 105.374 116.510 124.018 132.334 139.951
Finance and insurance 82.837 88.218 92.099 96.497 100.664
Real estate and business services 185.137 185.535 193.125 204.686 214.991
Other Services 24.321 25.085 25.684 26.112 27.234
fast flow distribution network. Labour intensities
declined in many facets of wholesaling. Retailers’
proactive responses to social and demographic
changes (such as the growth in ‘income-rich and
time-poor’ consumers) through extended trading
hours and locational convenience also contributed
to the high TFP. In addition, major initiatives by
the Government to increase the large number of
hypermarkets, superstores and department stores
and TUKAR programme had been successful.
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