chapter 6 - Malaysia Productivity Corporation ( MPC)

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STATEMENT BY THE CHAIRMAN
“The future of productivity growth in Malaysia will depend on the capability to make more
productive use of skilled labour, improved innovative capacity of firms, facilitate the shift of
capital and other resources to the most productive sectors of the economy and reduced
regulatory barriers and simplify doing business through modernisation of business
regulatory review.”
This Productivity Report is the 19 th edition published by MPC and provides a comprehensive
analysis on productivity performance of key economic sectors. Three new chapters have
been incorporated into this Report covering productivity initiatives to enhance national
competitiveness ranking, modernising business regulation, enterprise innovation and
business excellence.
Productivity growth is the impetus towards raising the living standards of an economy
over the long-term. It is also a key indicator of the overall competitiveness and innovation
of an economy. Productivity reflects the efficiency of a Nation’s economic system and the
effectiveness of its economic policies. The strong economic fundamentals resulting from
improved Government efficiency through its regulatory review and modernising business
initiatives and improvement in the firm’s efficiency have enabled the economy to continue
growing despite the challenging global economy that affected Eurozone, USA and Japan.
Malaysia recorded a productivity growth of 4.6% in 2011. The growth was broad-based
across all major economic sectors except mining, which recorded a negative growth.
The agriculture sector recorded the highest productivity growth followed by the services
sector. It is gratifying to note that the Malaysian productivity growth was higher than many
OECD countries and the Asian developed economies such as Singapore, Taiwan, Hong
Kong and Korea.