chapter 6 - Malaysia Productivity Corporation ( MPC)

PRODUCTIVITY PERFORMANCE OF THE SERVICES SECTOR
The changing preferences of the consumers have
further support the development of this services.
Consumers now preferred modern outlets which
offer variety of products and services. This has
affected the landscape of wholesale and especially
retail outlets where the focus is towards shopping
convenience.
There are a total of 300 retail outlets with 114 million
sq ft of space available nationwide particularly,
in Kuala Lumpur. Average occupancy rate of the
retail space is reported to be 80.2%, with higher
occupancy rate of 84.2% reported in Kuala Lumpur.
Productivity Performance
The sales value per employee of wholesale and
retail trade services grew 7.1% at RM496,576 in
2011 as compared to 10.5% at RM463,736 in 2010
(Figure 6.9 & 6.10). A higher growth was recorded
for wholesale trade services at 7.3% as compared
to 6.9% for retail trade services. It was able to
maintain its labour cost competitiveness as labour
cost per employee grew by 4.7% while unit labour
cost decreased by 2.2% in 2011. The lower sales
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value per employee growth was mainly attributed
to slower growth in sales due to global economic
conditions which affected tourist spending as well
as prudence domestic spending. On the other hand,
the number of employees grew at a higher rate
compared to 2010, suggesting that the wholesalers
and retailers are optimistic towards about their
future expansion. Besides, many retailers invested
in large format stores as one-stop shopping centre
for customers. The retail services across the world
have witnessed the increased percentage share
of large format stores and Malaysia was not left
too far behind. The expansion of wholesale and
retail services was supported by the Government’s
efforts undertaken through its ETP.
Another growing source of productivity for
wholesale and retail services is the suburb areas. The
urban sprawl phenomenon due to advancement in
transportation and communication technologies
has led to the development of new residential as
well as commercial areas at the outskirt of Kuala
Lumpur. This phenomenon brings huge potential
profits to investment in suburban retailing.
Figure 6.9: Sales Value per Employee of the Wholesale and Retail Trade Services, 2008–2011
2011
2010
2009
2008
Computed from: Department of Statistics, Malaysia
0 380 400 420 440 460 480 500 520
RM Thousands
496.58
463.74
419.63
439.80