chapter 6 - Malaysia Productivity Corporation ( MPC)

PRODUCTIVITY PERFORMANCE OF MALAYSIA
8.7%, followed by Indonesia (5.0%) and India
(4.8%). Malaysia’s productivity growth at 4.6% was
ahead of Hong Kong (2.7%), Singapore (2.1%) and
Taiwan (1.9%), while Thailand posted a decline in
productivity by 1.1% (Figure 1.17).
Malaysia productivity level was at least three
times higher as compared to its regional peers
namely, Thailand (USD4,801), China (USD4,443),
Philippines (USD3,341), Indonesia (USD3,040) and
India (USD2,867), but lagging behind Hong Kong,
Singapore and Taiwan.
Way Forward
In the context of an ailing global economy
especially in the US and Eurozone, many exporting
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countries including Malaysia were affected. As a
small open economy which is dependent on export
and vulnerable to major changes worldwide,
concentration on domestic consumption is the
best option to overcome this sluggish economy.
The current Budget 2012 is expected to spur
domestic consumption. These include the oneoff
financial assistance to households in the low
and middle-income groups, schooling assistance
to all primary and secondary students and book
vouchers to all local students in tertiary education
institutions as well as increment in public sector
wage.
Besides relying on domestic consumption, Malaysia
must also diversify its efforts and initiatives to be on
Figure 1.17: Productivity Levels and Growth of Malaysia and Selected Asian Countries, 2011
HONG KONG
SINGAPORE
TAIWAN
MALAYSIA
THAILAND
CHINA
PHILIPINES
INDONESIA
INDIA
(4.801)
(4.443)
(3.341)
(3.040)
(2.867)
Computed from: Country Data, The Economist Intelligent Unit
(14.217)
(43.827)
(55.702)
(65.174)
0 10 20 30 40 50 60 70
USD Thousand
2.70
2.10
1.90
4.55
-1.10
8.70
0.50
5.00
4.80
Percent