The Development of Malaysia Industrial Productivity Database for KLEMS Zaffrulla Hussein Wan Fazlin Nadia Malaysia Productivity Corporation Petaling Jaya, Malaysia Asia KLEMS Database Management Workshop July 5-6, 2012 Seoul National University, Hoam International Convention Center South Korea

Objective of Malaysia KLEMS Project Develop new methodology of measuring TFP and the sources of growth; Generate high quality time series database on KLEMS; Establish productivity and TFP benchmarks and best practices at sub-sector level that can emulated by other Malaysia companies; Perform international comparisons among KLEMS practicing countries ; and Research on Malaysia TFP growth and competitiveness at economy and industrial level.

Who were Involved The project is being lead by the Malaysia Productivity Corporation (MPC) MPC has form collaboration with: Department of Statistics Malaysia Malaysian Institute of Economic Research (MIER) Central Bank of Malaysia (BNM) Also contacts with: Korea Productivity Center The Conference Board

Malaysia KLEMS Milestones Time duration of the project is two years: December 2011 – August 2012; September 2012 – January 2013; and February 2012 – June 2013 It comprises of three phases Phase I – Data Collection Phase II – Measuring the contribution of KLEMS Phase III – Analysis of the outcome

Phase I – Data Collection To create a time series database on growth accounts by 120 industries for: Gross output/Added value Sources; Input Output Table (1978, 1990, 2000 and 2005) Establishment Survey / Economic Census Special survey of final National Accounts Capital Inputs Sources; Input Output Table ( 1978, 1990, 2000 and 2005 ) National Accounts: Capital Stock Statistics Labour Inputs Sources; Labour Force Survey Establishment Survey / Economic Census Intermediates Inputs Sources; Input Output Table (1978, 1990, 2000 and 2005) Establishment Survey / Economic Census Special survey of final National Accounts

Phase II – Measuring the contribution of KLEMS Measuring the contribution on KLEMS to the gross output based on 33 industries of the economy, out of 120 industries in IO table. Phase III – Analysis of the Outcome Analysis of the outcomes for value added, capital input, labour input and labour productivity for 33 industries.

Scope of Work The gross output, added value, capital input, labour input and productivity series will cover the period from 1990 onward ( ). The project will follow by KPC and EU KLEMS in regard to sectoral classification and methodology.

Progress and Issues IO Tables 1978, 1991, 2000 and 2005 (94 & 120 industries to be reclassified into 33 industries) Missing years will be filled-in using census / survey data RAS method: to fill in the missing data between years. Capital Inputs: Type of assets: I.Residential II.Non-Residential III.Other Construction IV.Transport Equipment V.Computers VI.Machinery and equipment VII.Biological Assets VIII.Mineral Exploration IX.Others Deprecation by type of assets

Quality of Labour Gender Male & Female Education Attainment Primary – Low Skill Secondary – Medium skill Tertiary – High Skill Age Group Below 30 years old 30 – 49 years old Above 50 Total Compensation