chapter 6 - Malaysia Productivity Corporation ( MPC)

PRODUCTIVITY PERFORMANCE OF THE AGRICULTURE SECTOR
Overview
The agriculture sector plays an important role in
Malaysia’s economic development in providing
rural employment, uplifting rural incomes and
ensuring national food security. The agriculture
sector registered a productivity growth rate of
6.2% in 2011, amounting to RM29,466 compared
to 1.8% (RM27,738) in 2010 (Figure 8.1).
Gross Domestic Product of the agriculture sector
in 2011 amounted to RM43.3 billion, representing
a high growth of 5.6%, compared to 2.2% in 2010.
The sector contributed an estimated 7.3% towards
the national GDP.
The higher growth rate of the agriculture sector
was driven by higher crude palm oil (CPO) and
rubber production. Production of CPO rose by
8.2% to 12 million tonnes during the period of
January to August 2011 from 11.1 million tonnes
in 2010. The higher production was also attributed
to the higher fresh fruit bunches (FFB) yields from
11.8 tonnes per hectare to 12.5 tonnes per hectare.
During the first half of the year, production of
Figure 8.1: Productivity Growth of the Agriculture Sector 2007 - 2011
Computed from: Department of Statistics, Malaysia
Economic Report, Ministry of Finance, Malaysia
176
2011
2010
2009
2008
2007
(25,601)
0 22.0 23.0 24.0 25.0
RM Thousand
natural rubber rose sharply by 10.8% to 0.6 million
tonnes (0.5 million in 2010). Production of livestock,
fruits and vegetables also expanded strongly. The
implementation of high impact projects such as
Aquaculture Industrial Zone (AIZ) and Permanent
Food Production Park (TKPM), coupled with the
implementation of various EPPs of the Agriculture
NKEA have contributed to the higher productivity
of the agriculture sector.
The value of production of food and floriculture
sub-sector recorded a growth of 5.3% in 2011. The
main contributors were aquaculture, mutton, eggs
and paddy, as shown in Table 8.1.
Productivity Performance
Farm productivity is assessed in terms of the
output derived from the utilisation of the factors
of production namely, land, labour and capital.
Land productivity is a measurement of the output
from the utilisation of a unit land area, while labour
productivity is the measurement of output per
worker. Capital productivity measures the output
per Ringgit investment.
(26,466)
(26,372)
(27,680)
(29,466)
26.0 27.0 28.0 29.0 30.0
6.2
1.8
1.5
9.3
2.3
Percent