chapter 6 - Malaysia Productivity Corporation ( MPC)

PRODUCTIVITY PERFORMANCE OF THE SERVICES SECTOR
country a popular choice for education destination
coupled with the affordable fees charged by
the private institutions as well as internationally
recognised programmes. Many of the foreign
students are also interested in learning English,
courses internationally recognised such as TOEFL
(Test of English as a Foreign Language) and IELTS
(International English Language Testing System)
and English courses offered by English language
centres and private tertiary institutions should be
promoted to them. Stable political environment,
good infrastructure, biodiversity richness and
multi-culture people are striking factors for
Malaysia to become an education hub.
HEALTHCARE SERVICES
Overview
Healthcare services such as the privately owned,
continues to expand since the last decade. To date,
the private healthcare providers dominate the
market for healthcare services in this country. A
total of 62% of all hospitals are owned by private
entities. The dual system in healthcare services
provides greater accessibility to and at the same
time, choices of healthcare institutions. While the
public healthcare providers ensure accessibility to
all income levels, private providers which are more
commercialised, are targeting at population in the
higher income brackets.
Increasing demand for private health institutions
is mainly due to increase in income per capita
following deregulation in the supply of healthcare
services. Increase in awareness of the public on
the importance of healthcare also contributes
to changing demand for healthcare services
in Malaysia. Access to internet has increased
people understanding on the importance of early
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treatment for certain critical illnesses such as
cancer, kidney failure and diabetes.
There are two forces that influence the healthcare
system. First, is change in demographic
characteristics of the population and second, is
globalisation of the healthcare services. In the
years to come, there is an increasing concern over
increase share of population in dependent cohort,
those in the older age groups which increase
the demand for old age care services. Younger
generation at the same time has better knowledge
about disabilities, especially among children such
as autism, attention deficit hyperactivity disorder
(ADHD) and dyslexia, contributing to increase in
demand for childcare services.
Globalisation brings down the cost of
transportation which make cross border medical
treatment possible. Many people seek medical
service outside the country’s border for different
reasons, either they are trying to find a better
quality healthcare service or they wanted to seek
for the lowest healthcare cost. Countries with
excellent healthcare system will benefit the most
from the expanding trend of seeking healthcare
abroad.
Productivity Performance
The healthcare services recorded a productivity
growth of 7.9% amounting to RM72,308 in 2011
from RM67,042 in 2010 (Figure 6.17 & 6.18). The
highest productivity growth was recorded by the
hospital services. Increase in productivity was
reflected through a decline in unit labour cost by
5.0% and labour cost per employee 2.4% in 2011.
The increasing level of productivity was mainly
attributed by the changing preferences towards