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chapter 6 - Malaysia Productivity Corporation ( MPC)

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APPENDIX A – PRODUCTIVITY<br />

230<br />

8.3 Capital <strong>Productivity</strong><br />

Capital productivity indicates the degree of utilisation of fixed assets and how efficient these<br />

assets are being utilised. It is defined as Added Value generated per Ringgit of Fixed Assets.<br />

High ratio indicates better performance of the assets.<br />

8.4 Capital Intensity<br />

Capital intensity measures the amount of fixed assets allocated to each employee. It is also<br />

known as Fixed Assets per Employee or simply capital-to-labour ratio. This ratio measures<br />

whether an industry is relatively capital-intensive or labour-intensive.

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