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chapter 6 - Malaysia Productivity Corporation ( MPC)

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CHAPTER 2<br />

Table 2.1: Contribution of TFP, Capital and Labour to GDP (%)<br />

GDP<br />

Labour<br />

Capital<br />

ICT capital (1.2%) and ICT capital (0.8%). During the<br />

first period 2002-2006, capital growth was 1.9% of<br />

which non-ICT capital contributed 1.0% and ICT<br />

capital (0.9%). Likewise during the second period<br />

2007-2011, capital growth had increased to 2.2%<br />

of which 1.4% by non-ICT capital and 0.8% by ICT<br />

capital (Table 2.1).<br />

TFP<br />

Labour Quality<br />

Labour Quantity<br />

Non ICT Capital<br />

ICT Capital<br />

Computed from: Department of Statistics, <strong>Malaysia</strong><br />

Figure 2.2: Share of Non ICT Capital and ICT Capital<br />

2010<br />

2002<br />

1990<br />

0<br />

Computed from: Department of Statistics, <strong>Malaysia</strong><br />

2002-2006 2007-2011 2002-2011<br />

5.83<br />

1.27<br />

(21.80)<br />

0.24<br />

1.03<br />

1.92<br />

(32.96)<br />

1.04<br />

0.88<br />

2.64<br />

(45.24)<br />

4.41<br />

1.53<br />

(34.60)<br />

0.17<br />

1.36<br />

2.17<br />

(49.19)<br />

1.36<br />

0.81<br />

0.71<br />

(16.21)<br />

5.12<br />

1.40<br />

(27.31)<br />

0.20<br />

1.19<br />

2.04<br />

(39.95)<br />

1.20<br />

0.84<br />

1.68<br />

(32.74)<br />

The high contribution of non-ICT capital to GDP<br />

growth was reflected by higher investment in<br />

structural as well as machinery and equipment.<br />

Over the last two decades, share of investment<br />

in non-ICT capital had decreased from 88.8% in<br />

1990 to 81.1% in 2010, while share of ICT capital<br />

workforce had shown increasing trend from 11.2%<br />

in 1990 to 18.9% in 2010 (Figure 2.2).<br />

10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0<br />

Percent<br />

Non ICT Captal ICT Capital<br />

81.3<br />

18.7<br />

84.9<br />

15.1<br />

88.8<br />

12.2<br />

19

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