UNITED NATIONS WORKSHOP ON INTERNATIONAL ECONOMIC AND SOCIAL CLASSIFICATION 24 – 27 NOVEMBER 2008, BANGKOK, THAILAND UNITED NATIONS WORKSHOP ON INTERNATIONAL ECONOMIC AND SOCIAL CLASSIFICATION 24 – 27 NOVEMBER 2008 BANGKOK, THAILAND DEVELOPMENT AND IMPLEMENTATION ISIC REV. 4 AND CPC 2.0 IN MALAYSIA: CHALLENGE AND ISSUES

DEPARTMENT OF STATISTICS MALAYSIA (DOSM) OUTLINE OF PRESENTATION Introduction Harmonized coding system Rationale for the development of the codes Implication from development and expansion of the codes and classification Implementation of MSIC 2008 dan MCPA 2008 Challenges and Issues Concerning ISIC Rev. 4 and CPC 2.0 Conclusion

DEPARTMENT OF STATISTICS MALAYSIA (DOSM) INTRODUCTION Economic and Social Classification  Malaysia Standard Industrial Classification (MSIC) Based on International Standard Industrial Classification (ISIC) MSIC 2008 ver 1.0 based on ISIC rev. 4  Malaysia Classification of Products by Activity (MCPA) Based on Central Product Classification (CPC) MCPA 2005 based on CPC 1.0 MCPA 2008 in process of updating based on CPC 2.0

DEPARTMENT OF STATISTICS MALAYSIA (DOSM) HARMONIZED CODING SYSTEM A AGRICULTURE, FORESTRY AND FISHING 01Crops and animal production, hunting and related service activities 011 Growing of non-perennial crops 0111 Growing of cereals (except paddy), leguminous crops and oil seeds Growing of maize A SECTIONDIVISIONGROUP CLASSITEM ISIC MSIC updating the codes and classifications used in the country in line with the international guidelines and recommendations

DEPARTMENT OF STATISTICS MALAYSIA (DOSM) 0122 – GROWING OF OTHER TROPICAL AND SUB-TROPICAL FRUITS Which has been divided into 9 sub-items: – Growing of banana – Growing of mango – Growing of durian – Growing of rambutan – Growing of star fruit – Growing of papaya – Growing of pineapple – Growing of pitaya (dragon fruit) – Growing of other tropical and subtropical fruits. HARMONIZED CODING SYSTEM

DEPARTMENT OF STATISTICS MALAYSIA (DOSM) GROWING OF MAIZE 01 Maize (corn), seed 001 Maize (corn), seed 002 Sweet corn 003 Other maize (corn) INDUSTRY COMMODITY GROUP 01 COMMODITY CODE 001 MSIC MCPA BASED ON CPC DERIVED CODE HARMONIZED CODING SYSTEM

DEPARTMENT OF STATISTICS MALAYSIA (DOSM) RATIONALE FOR THE DEVELOPMENT OF THE CODES to ensure the codes and the classifications used are harmonized internationally synchronizing for all agencies to use the same codes and classifications expansion of new industries and products in Malaysia market data comparison can be made, nationally or internationally

DEPARTMENT OF STATISTICS MALAYSIA (DOSM) MSIC 2000 vs MSIC 2008 VER % 46.7% 51.6% 40.1% 68.2% IMPLICATION FROM DEVELOPMENT AND EXPANSION OF THE CODES AND CLASSIFICATION

DEPARTMENT OF STATISTICS MALAYSIA (DOSM) IMPLEMENTATION OF MSIC 2008 AND MCPA 2008 MSIC 2008 Rev 1.0 are finalised on August 2008, the implementation process of MSIC 2008 involves:  Providing training and exposure toward new codes for the users  Process of conversion of all system, time series data and SIDAP frame.  MSIC will be used in the Population and Housing Census of Malaysia January 2010, all surveys carried out by DOSM will be fully implement due to the interdependency between MSIC and MCPA, DOSM targeted to finalized the next version MCPA by June 2009

DEPARTMENT OF STATISTICS MALAYSIA (DOSM) CHALLENGES AND ISSUES CONCERNING ISIC REV. 4 AND CPC 2.0 Revision of MSIC and MCPA should be concurrent because of the interdependency, have to prioritize only one because of the scarcity of workload and time. The use and conversion to new codes will affect time series data.  publishing activities under manufacturing moved to services in the ISIC Rev. 4 (Information and communication)  The production of ice, including ice for food and non-food (e.g. cooling) purposes has been classified under class utility steam and air conditioning supply and not classified as manufacturing as in the ISIC Rev.3 Expansion and combination of ISIC codes  The mapping process for these industries will be done manually and very time consuming

DEPARTMENT OF STATISTICS MALAYSIA (DOSM) CHALLENGES AND ISSUES CONCERNING ISIC REV. 4 AND CPC 2.0 In the process of developing the new MCPA, we found that:  For the CPC 2.0 code – Meal serving services with full restaurant services, we suggest that for ”food preparation and related beverage service furnished in hotels or other lodging places” should come under the industry code 5510 – Short term accommodation. This is because most of the restaurants, coffee houses in hotels are usually owned by the hotel. When these restaurants came under a different industry code (5610), it will raise to inaccuracy of the data.  For the CPC Group 833 – Engineering services, we suggest that for specific engineering field, it should be classified separately and not under engineering services code 7110 – Architectural and engineering activities and related technical consultancy.

DEPARTMENT OF STATISTICS MALAYSIA (DOSM) CONCLUSION Will always update new codes along with international changes from time to time Through the Inter-Agency Technical Committee (IATC) which comprise of representatives from a related government agencies, the coordination and monitoring of the implementation and use of standardized codes, classifications and definitions developed in the Department and Other Government Agencies (OGAs) can be done.

DEPARTMENT OF STATISTICS MALAYSIA (DOSM)