chapter 6 - Malaysia Productivity Corporation ( MPC)
chapter 6 - Malaysia Productivity Corporation ( MPC)
chapter 6 - Malaysia Productivity Corporation ( MPC)
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PRODUCTIVITY PERFORMANCE OF THE MANUFACTURING SECTOR<br />
Figure 7.9d: Changes in Unit Labour Cost of the Palm Oil Products, 2010-2011<br />
its labour cost competitiveness through higher<br />
productivity growth of 4.7% achieved during this<br />
period.<br />
A total of eight EPPs have been identified for<br />
this industry which focused on upstream and<br />
downstream productivity as well as sustainability.<br />
At the downstream level, one of the EPPs for the<br />
palm oil industry is to increase the oil extraction<br />
rate (OER) from a three year low of 19.7% in January<br />
to an average of 20.4% by the end of 2011.<br />
Under EPP 5, all palm oil mills are required to<br />
mitigate methane gas released during the milling<br />
process through the setting up bio-gas plants<br />
within their respective mills which later can be<br />
used to generate electricity. By the end of 2011,<br />
48 bio-gas plants were established and fully<br />
operationalised, whilst a total of 21 more plants are<br />
under construction.<br />
To develop oleo derivative plants under EPP 6,<br />
additional efforts were geared towards promoting<br />
the development of palm-based food and health-<br />
168<br />
Percent<br />
Computed from: Department of Statistics, <strong>Malaysia</strong><br />
-1.10<br />
-0.20<br />
-2.0 -1.5 -1.0 -0.5 0.0<br />
2011<br />
2010<br />
based products at the downstream activities<br />
via EPP 8 with higher value-added products. To<br />
achieve this, one of the world’s largest tocotrienols<br />
production complex will be established and fully<br />
operational by 2012.<br />
Total Factor <strong>Productivity</strong> (TFP) of Selected<br />
Manufacturing Sub-Sectors, 2007 – 2011<br />
The performance of TFP growth in the overall<br />
manufacturing sector was 0.2% with some subsectors<br />
achieving negative growth during 2007–<br />
2011 (Figure 7.10). The E&E sub-sector registered<br />
the highest TFP growth during 2007-2011 at 2.0%<br />
which was sustained through various productivity<br />
initiatives such as lean management, line balancing,<br />
cost reduction programmes undertaken by this<br />
sub-sector. Other sub-sectors which experienced<br />
positive TFP growth include fabricated metal<br />
(1.4%), non-metallic mineral products (1.4%),<br />
textiles (0.8%), wood and wood products (0.7%),<br />
chemical products (0.5%), rubber and plastics<br />
products (0.4%) and machinery (0.1%).
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