chapter 6 - Malaysia Productivity Corporation ( MPC)

CHAPTER 7
Figure 7.10: TFP Growth of the Manufacturing Industries, 2007-2011
ELECTRICAL AND ELECTRONICS
FABRICATED METAL
NON-METALLIC MINERAL PRODUCTS
TEXTILES
WOOD AND WOOD PRODUCTS
CHEMICAL PRODUCTS
RUBBER AND PLASTICS
MANUFACTURING
MACHINERY
BASIC METAL
APPAREL
TRANSPORT EQUIPMENT
FOOD AND BEVERAGES
Source : Computed from: Department of Statistics, Malaysia
-4.0 -3.0 -2.0 -1.0
Four manufacturing sub-sectors with negative TFP
growth were food and beverages (-3.1%), transport
equipment (-1.1%), apparel (-0.5%) and basic metal
(-0.1%). The food and beverages and transport
equipment sub-sectors experienced a drastic drop
in TFP growth compared to 2006-2010 period.
The low TFP growth from the food and beverages
sub-sector was attributed by the presence of large
number of small scale entrepreneurs using simple
technology with low value added activities. The
drop in TFP growth for the transport equipment
was attributed by the disruptions of supply chain
caused by the earthquake and tsunami in Japan.
This resulted in shortage of automotive parts and
accessories, slowing the production process and
lowering the efficiency.
0.0 1.0 2.0 3.0
2.0
1.4
1.3
0.8
0.7
0.5
0.4
0.2
0.1
-0.1
-0.5
-1.1
-3.1
Innovation and Best Practices
Percent
Productivity enhancement is crucial for companies’
performance and competitiveness. Productivity
is very much related to companies’ innovation
and best practices that involved all parties within
the companies. The benefits from productivity
enhancement will be enjoyed by employers and
employees. The employers will gain through
higher profit and the employees will get higher
wages. Subsequently, the companies will be more
competitive and have larger contribution to the
sector as well as the nation.
From the companies’ perspective, productivity
enhancement can be achieved through several
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