Report No. 3187-MA 1:LE COPY Malaysia's Manufacturing Sector: L COPY Development Issues and Policy Options (In Three Volumes) Volume III: Annex and Statistical Tables April 9, 1981 Projects Department East Asia and Pacific Regional Office FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit - Ringgit (M$) 1 M$ = US$0.45 1 US$ = M$ 2.20 ABBREVIATIONS BNM Bank Negara Malaysia DRC Domestic Resource Cost EPRs Effective Protection Rates EPU Economic Planning Unit FMIP Fourth Malaysia Plan FTZs Free Trade Zones GOM 0 Government of Malaysia ICA Investment Coordinating Act IEs Industrial Estates IIP Index of Industrial Production LIs Locational Incentives LUR Labor Utilization Relief MIDA : Malaysian Industrial Development Authority MIDF : Malaysian Industrial Development Finance Co. MIS Monthly Industrial Statistics MTI Ministry of Trade and Industry NEP New Economic Policy PS Pioneer Status QLFS Quarterly Labor Force Survey SACT Special Advisory Committee on Tariffs SEDCs: State Economic Development Corporations SMIs : Small and Medium Industries TAB : Tariff Advisory Board TMP Third Malaysia Plan FISCAL YEAR January 1 - December 31 FOR OFFICIAL USE ONLY MALAYSIA-S MANUFACTURING SECTOR: DEVELOPMENT ISSUES AND POLICY OPTIONS VOLUME III Annex and Statistical Tables Table of Contents Page No. PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 3 BASIC DATA SHEET ..... . . . . . . . .... . . . . . . . . . 4-5 Annex . . . . . . . . . . Inadequacy of the Industrial Data Base . . . . . . . . . . . . . 6 Evaluation of the Data Base .... . . . . . . . . . . . . .. 6 Some Suggestions for Improving the Data Base . . . . . . . . . . 16 List of Statistical Tables . . . . . . . . . . . . . . . . . . . 21 - 25 Statistical Tables .26 - 95 This document has a restricted distribution and may be used by recipients only In the performance of their omcial duties. Its contents may not otherwise be disclosed without World Bank authorization. I (2) PREFACE This report presents an overview of the findings of an Industrial Sector Mission which visited M4alaysia from February 18 to March 11, 1980. Two basic objectives of the mission were: (a) to review the past performance and assess the growth potential of the manufacturing sector in terms of its likely contribution to increased output, employment and exports; and (b) to highlight, where appropriate, policies and incentives that will help to ensure that Malaysia's manufacturing potential is fully exploited and the benefits to the national economy maximized. The present report is intended as a contribution to the preparation of the Fourth Malaysia Plan (FMP: 1981-1985). From the very start the work of the mission was seen as a cooperative effort of the Governiment and the Bank. Recognizing the collaborative nature of the task, the Economic Planning Unit (EPU) established a counterpart steering committee, drawing its members from the Ministry of Trade and Industry, Treasury, Bank Negara Malaysia, Ministry of Labor, Ministry of Public Enterprises and the Department of Statistics. This committee contributed substantially to the success of the mission both during the foraulation of the terms of reference for the study and during the field visit of the mission. Given the tight time schedule set for the pre- paration of the FMP, the mission focused aainly on highlighting the development issues and the changing role of incentives and policies at this stage of the manufacturing sector in Malaysia. This mission consisted of the following members: Fateh M. Chaudhri - Chief of Mission Keith Marsden - Employment Policies & Incentives Ozay Mehmet (Consultant) - Labor Market Analysis Hugo Molina (UNIDO) - Light Industry Subsectors Vinod Prakash - Sector Performance and Prospects Yung Rhee - Incentives and Policy Framework Bertil Walstedt (Consultant) - Public Enterprises and Heavy Industry In the processing of this report and in reviewing some of the working papers, Mr. S. Talbot gave substantial support to the mission. Mr. F.M. Iqbal, Senior Field Advisor, UNIDO, also provided the mission with notes on the, Institutional Framework for Industrial Development in Malaysia. A preliminary draft of the report was submitted to EPU in July 1980 and technical discussions on that draft took place with government officials in Kuala Lumpur during August 23-September 1, 1980. Follow-up policy level discussions were conducted by a Bank mission consisting of Messrs. Jaycox, Gould, Tsantis and Chaudhri in January-February 1981. This report reflects those discussions. (3) This report consists of three volumes. Volume I : Summary Report and Recommendations Volume II : The Main Report Volume III: Annex and Statistical Tables The following background working papers prepared in connection with the report have been issued individually in white cover and are available upor. request from the East Asia and Pacific Projects Department. 1. A Study of Growth Performance and Outlook of the Mlanufacturing Sector in Malaysia. 2. Incentive Systems and Policies for the Manufacturing Industries in Mlalaysia. Page 1 of 2 pages -4 - MALAYSIA - BASIC DATA - MANUFACTURING SECTOR M$ billion at 1970 prices Annual growth rates (%) 1971 1973 1975 1978 1980 1961-65 1965-70 1971-75 1975-80 CDP 13.0 15.9 17.4 22.3 25.7 5.6 5.5 7.5 8.1 Manufacturing 1.9 2.5 2.9 4.3 5.3 12.1 9.9 11.3 13.0 Z of GDP 14.3 15.8 16.4 19.1 20.5 Manufacturing Value Added (current prices) Structure Annual Contribution (VA = Value added, GO = Gross Output, of value growth rates (x) to growth (x) GO* = Gross Output approximated by Sales added (%) 1968-73 1968-73 1973-78 1968-73 1973-78 of lManufactured Own Products) 1968 1973 GO VA GO* GO GO* 31 Food, beverages & tobacco products 28.0 23.9 15.9 17.8 13.8 27.3 18.3 32 Textiles, clothing & footwear 3.2 6.1 30.2 39.0 26.7 6.7 10.3 33 Wood & wood products 11.8 13.9 23.7 26.0 12.4 12.0 2.0 34 Paper, paper products, printing & publishing 6.7 5.7 18.3 17.7 14.2 3.8 2.6 35 Chemicals, petroleum, rubber & coal products 28.1 21.2 15.2 13.6 17.2 21.8 26.0 36 Nonmetallic mineral products 7.0 5.3 14.8 14.7 20.0 2.7 2.9 37 Basic metal products 2.5 -3.7 31.0 32.0 23.0 4.1 2.0 38 Fabricated metals, machinery, etc. 12.4 19.8 30.2 34.0 31.6 20.1 25.8 39 Miscellaneous industries 1.5 10.1 Manufacturing Total 100.0 100.0 19.4 21.6 20.1 100.0 100.0 Monthly indus- Annual Census trial statistics growth rates (%) Mlanufacturing Employment ('000 no.) 1968 1973 1973 1978 1968-73 1973-78 31 Food, beverages & tobacco products 26.7 46.2 23.9 31.3 11.6 5.5 32 Textiles, clothing & footwear 8.8 34.9 29.0 53.1 32.0 12.9 33 Wood & wood products 21.9 44.9 15.0 17.9 15.4 3.6 34 Paper, paper products, printing & publishing 10.9 17.4 11.6 16.1 9.8 6.8 35 Chemicals, petroleum, rubber & coal products 25.8 42.7 35.9 49.4 10.6 6.6 36 Nonmetallic mineral products 7.3 13.0 3.3 5.5 12.2 10.8 37 Basic metal products 3.1 6.8 2.7 4.0 17.0 8.2 38 Fabricated metals, machinery, etc. 20.6 65.9 40.0 85.9 26.0 16.5 Manufacturing Total 125.5. 273.5 181.2 290.8 16.9 9.9 June Manufacturing Production Index (1968-100) Welght 1969 1971 1973 1975 1477 1978 1979 311/2 Food products 16.5 109 112 130 136 162 172 172 321 Textiles 2.2 112 122 197 214 314 356 395 331 Wood G wood products 11.9 108 140 203 190 286 274 303 351/2 Induatrlal chemicals & producst 9.6 112 122 1I 155 180 204 235 353/4 Refined petroleum & products 5.0 100 92 99 118 169 189 199 35591 Rubber remilled & latex processed 8.4 107 107 98 82 83 82 70 Other rubber products 6.4 109 132 166 164 196 193 198 369 Nonmetallic mineral products 7.6 112 119 147 161 196 246 261 37 Basic metal products 2.7 144 166 226 228 284 318 318 381 Fabricated metal products 4.2 107 141 243 186 233 292 311 383 Electrical machinery, etc. 2.0 129 189 201 287 432 466 468 384 Transport equipment 2.3 210 282 393 412 481 573 633 Manufacturing Total 100.0 116 138 187 216 284 312 337 Page 2 of 2 pages -5- X of merchandise exports Annual growth rates (%) Merchandise Exports (current prices)1961/62 1968/69 1973/74 1978/79 1960-70 1973-77 1970-79 Traditional (Primary) 91.5 88.2 84.0 79.5 3.2 18.2 17.7 Rubber 46.8 36.9 30.7 19.9 -1.5 7.7 11.4 Timber 6.2 16.1 17.7 14.0 16.0 11.6 19.4 Palm oil 2.2 3.3 9.0 11.9 14.3 38.5 29.5 Tin 18.1 19.3 13.7 10.5 7.2 17.4 9.5 Crude & partly refined petroleum 3.3 3.7 5.4 15.6 3.2 65.4 39.8 Nontraditional (Manufactures) 8.5 11.8 16.0 20.5 7.1 25.8 25.6 Food products 1.3 1.8 1.9 1.5 7.2 19.7 15.5 Textiles & clothing +0.0 0.7 1.1 2.2 n.a. 30.4 37.9 Wood products 40.0 3.1 2.9 2.0 n.a. 3.8 20.0 Petroleum & chemical products 4.4 4.5 2.3 1.4 2.0 0.7 2.8 Electrical machinery +0.0 +0.0 2.0 9.6 n.a. 73.0 74.5 Total Merchandise 3.3 4.6 8.8 20.5 3.6 19.5 18.6 (Annual average M$) % of merchandise imports Annual growth rates (x) Merchandise Imports 1961 1969 1974 1979 1961-69 1969-74 1974-79 Consumption Goods 46.7 31.6 21.6 20.1 -1.6 13.7 9.7 Food, beverages & tobacco 25.6 14.8 9.2 7.6 3.9 11.7 7.1 Consumer durables 6.0 3.7 2.9 4.7 -4.9 17.3 21.9 Investment Goods 17.1 20.6 33.6 30.6 5.6 35.4 9.1 Machinery & transport equipment 8.7 9.8 13.6 12.4 4.8 31.0 9.2 Intermediate Goods 27.8 37.6 40.5 47.1 7.1 24.5 14.7 For manufacturing 7.8 20.1 23.7 28.3 16.1 26.8 15.3 Imports for Re-Exports 8.4 9.4 4.3 2.2 4.6 4.8 -2.6 Total Merchandise 2.8 3.6 10.0 17.1 3.1 22.7 11.2 (M$ bln in current prices) Direction of Exports Manufactured/ Annual % of total merchandise exports merchandise growth rates (Z) Manufactures All merchandise exports in 1973-78 Destination 1973 1978 1973 1978 1973 1978 Mfd. All merch. USA 23.9 33.6 10.8 18.6 52.5 30.3 33.2 32.0 Singapore 14.6 13.0 23.3 16.2 15.0 24.6 21.0 10.0 Japan 19.6 12.7 18.1 21.7 25.7 18.0 14.2 22.5 Netherlands 3.7 7.6 3.7 5.6 23.6 41.2 44.0 28.5 United Kingdom 7.7 4.8 7.9 4.8 23.2 30.9 13.5 7.1 W. Germany 2.2 4.0 3.8 3.6 14.1 34.1 40.0 17.2 Rest/world 28.3 24.3 32.4 29.5 20.8 25.3 21.0 16.1 Total/World 100.0 100.0 100.0 100.0 23.8 30.7 24.5 18.3 (04 bln in cur- rent prices) 1.8 5.2 7.4 17.1 ANNEX Page 1 INADEQUACY OF THE MANUFACTURING DATA BASE Introduction 1. The data, deficiencies faced by the Mission in analyzing the growth performance of the Malaysian manufacturing sector are so severe that the Mission considers it essential to draw the policy-makers' attention to the problems in industrial statistics and suggest possible approaches to improve the situation, keeping in mind not only the long-term needs of,the develop- ment planning but also the more important need of the FMP Mid-Term Review due in 1983. Improvements in the readily available industrial statistics are essential so that policy decisions are based on-sound economic.analysis of,reasonably comprehensive,"'accurate, up-to-date, and'.valid statistics. An improved information system becomes vital as an economy undergoes moderniza- tion and its industrial base widens and as problems and their solutions become more intricate and interdependent. The improved -information system, of course, is not a substitute for the decision-makers' judgement,;*but it facilitates availability of evidence and explanation for the hypotheses (issues) that decision-makers may have in mind, and provide them,with background information on the basis of which they can make wise choices in policy options. 2. Some of the measures needed to improve Malaysia's manufacturing data base are as follows: (a) greater dialogue between producers 'and users of statistics so that policy-oriented and operationally useful statistics are made available on a timely basis; (b)'more coordination between official agencies generating statistics so that *the extent,of duplication',is reduced to a minimum; (c) coverage of. small manufacturing establishments (not cov- ered in the Monthly Survey of Manufacturing Industries) on an appropriate sampling basis; (d) expansion of the industrial coverage of the monthly survey so that the manufacturing activity is suitably covered; (e) proper integration of the data for Sabah and Sarawak with' Peninsular Malaysia whenever the former are available, and appropriate measures devised to complete the geographical coverage; and (f) replacement of the existing industrial production index by a new based on the latest manufacturing and other censuses, annual sample surveys covering the industries and establish- ments not covered by the present monthly survey, and presenting analytically. useful data for the whole of Malaysia'on a consistent basis. Evaluation of the Data Base 3. An evaluation of the data base presented here is illustrative and confined only to some selected aspects of the manufacturing statistics in Malaysia. These aspects essentially pertain to an analysis of structural changes in the manufacturing sector; use of the Index of Industrial Production for estimating manufacturing growth; measurement.of levels of -7- ANNEX Page 2 manufactured exports, their growth rates and direct contribution to employment and output. 4. Structural Chenges. For a fast-growing economy, more so for its fastest growing sector, which is also the linchpin of development in the 1980s, it is far more important to have up-to-date, comprehensive, valid and reliable statistics than for a slow-growing (or sluggish) economy or sector. While Peninsular Malaysia accounts for more than 90% of Malaysia's manufacturing activity and hence, unintegrated (or unavailable) overall industrial statistics for Sabah and Sarawak may not appear to pose a serious problem; in certain subsectors lack of data may seriously distort the analysis because of these activities concentration in Sabah and Sarawak. Similarly, while the annual survey of manufacturing industries in Peninsular Malaysia covers more than 75% of the manufacturing employment and more than 85% of the value added, factors influencing the course of small-scale industry (or informal sector), not appropriately covered, may be operating quite differently from those in the medium and large scale industry. Moreover, due to its commitment to provide better employment opportunities, eradicate poverty, and ensure a more equitable distribution of the benefits of rapid economic growth, the Government should seek more detailed and up-to-date information on the informal sector. The latest available infor- mation on manufacturing value added and employment, etc., dates from 1974. 5. Being cognizant of these and other data limitations,/l the Government has rightly instituted a mechanism of the Inter-Agency Planning Group (IAPG) estimates and short-term forecasts. But the adjusted IAPG /1 For instance, the available employment statistics appear to be extremely weak. The divergence in estimates of manufacturing employment from diverse sources such as the manufacturing industries census/survey, labor force survey, and population census are enormous for an analyst who does not have time and resources to trace the roots of these sources in full depth. The estimates vary from 363,000 to 533,000 in 1975 according to three different official sources. Further, the 1968 Manufacturing Census reports total manufacturing employment of .126,000 whereas the same is reported to be about 215,000 according to the Labor Force Survey. While the two estimates are not expected to be identical, could a difference of almost 90,000 or 70% arise merely due to use of somewhat different concepts or measurements? Of course in the absence of a household business enterprise survey, it is difficult to ensure if a manufacturing census does not leave out household-based manufacturing activity; many of those households may not be included in the Master List supplied by the Register of Businesses. See Statistical Annex in Kevin Young, et al, op. cit. -8- ANNEX Page 3 estimates cannot be a substitute for reliable statistics./I IAPG's efforts in providing the latest possible numbers have only limited benefits because it cannot provide reasonably reliable statistics without improving the quality (especially timeliness and coverage - industrial, employment and geographical). of the underlying basic statistics or primary information./2 IAPG's estimation should be considered as a temporary arrangement which should be phased out with gradual improvement in the statistical system. Meanwhile, in order to enhance its credibility, the IAPG should properly maintain its work files and endeavor to improve the quality of its estimates by standardizing the short-cut methods using both internal and extenal consistency checks and by systematically recording the steps involved in adjusting the key statistics. 6. MissionI's analysis of industrial growth.and structural changes demonstrates that data defficiences beyond 1973 in particular are so severe that the developments over the past five to six years (which include the entire TMP) could not be properly analyzed./3 For example, an analysis of changes in the labor productivity and labor earnings (in real and nominal terms) led to many baffling empirical findings (see pp 23-24 of the Main Report). Labor productivity and labor earnings could not be accurately /1 The significance of reliable statistics and their role in formulating a "good" national socio-economic plan in the.Third World countries have been debated for several decades. See, for instance, "Welcome and Introductory Remarks" by C. R. Rao in Data Base of Indian Economy, Valume I, Proceedings of a Seminar Organized by the Indian Econometric Society, May 1972 (Statistical Publishing Society, Calcutta, 1972); also Heinrick'Hoffman, "Statistics in the Third World: Problems and Perspec- tives" in K.H.W. Bechtold (ed), Economics Volume 21, a Biannual Collec- tion of Recent German Contributions to the Field of Economic Science (Institute for Scientific Cooperation, Tubingen, 1980). 12 The need for improvement in the collection, processing and analysis of the primary information (or basic statistics) has been emphasized, in the context of formulation of public policy and evaluation of its effectiveness, by many leading economists including Nobel Laureates Simon Kuznets and Wassily Leontief. For instance, Professor Leontief's Presidential Address to the American Economic Association delivered in *1970, "Theoretical Assumptions and Non-observed Facts," (American Economic Review, March 1971) highlights the necessity to place a higher priority on improvement of the statistical base for resolving some of the urgent problems faced in the public policy. /3 Even for 1973 the value added reported in the manufacturing census is only about 80% of the manufacturing value added reported in the national accounts: M$ 2,327 million as compared to M$ 2,937 million. The latter figure is the Mission-s estimate derived from the national accounts; Annex Table 1.2. -9- ANNEX Page 4 measured due to inadequate data specifications;/l changes in product-mix by end use could not be fully analyzed due to incompatible trade and production statistics (see pp. 13-14); analysis of the changes in product-mix by factor-intensity was limited owing to an inadequate measure of capital stock and outdated input-output table; results of the changes in size distribu- tions were somewhat less definitive because of lack of supportive evidence (see pp. 10-11); and growth of output or value added and structural changes therein could not be reliably estimated since the necessary data were not available beyond 1973. Some of these problems are not unique to Malaysia, but an improved data base in Malaysia is particularly important because of the crucial role assigned to the manufacturing sector in furthering the NEP objectives during the Fourth Malaysia Plan. As an illustration of an evaluation of data sources, this annex focuses on the index of industrial production and problems of measuring trade in manufacturing and makes some suggestions for improving the data base. 7. Index of Industrial Production. The index of industrial production when originally constructed was probably an appropriate measure of industrial growth. After a decade it has become an inadequate measure mainly due to enormous expansion of the manufacturing sector and the resultant profound changes in its structure. The commensurate development in the provision of reliable, comprehensive and up-to-date industrial production index has not happened. Some of the reasons why the present industrial production should be replaced by a more comprehensive and reliable index are as follows: (a) Its industrial coverage is incomplete since one-fourth of the industrial activity in Peninsular Malaysia in 1973 does not seem to be covered at all. If the uncovered industries have grown less rapidly than the covered, the growth would have been consistently overestimated. (b) Its industrial classification is obsolete as it uses MIC (1967), and continues to show separate indices for "off-estate processing" and "other pioneer" status firms./2 Consequently, its results cannot be matched by other industrial statistics which are available according to the recent industrial classification [MIC (1972) Updated]; thus, its usefulness, is unduly limited. (c) Its geographical coverage is incomplete since it does not cover any establishments situated in Sabah and Sarawak. As the level of industrialization and resource-base for Sabah and Sarawak are /1 Labor earnings and work intensity (average number of hoursweek of part- time paid employees remain unidentified in the present questionnaire. /2 Inclusion of "Pioneer Firms, n.e.s." in the index as a separate item results from the use of old industrial classification. Though it may not affect the overall index, it does lead to distortions in indices of those products to which the firms ideally belong. Similar qualifications applies to the inclusion of "off-estate processing" as a separate item in the index. -10- ANNEX Page 5 quite different from Peninsular Malaysia, and the share of these two states in the national industrial activity is substantial, it is desirable to extend the geographical coverage to the whole of Malaysia ./l (d) Its employment 'coverage is also incomplete since it is based on complete enumeration of establishments from 40, subsectors (out of 116), only. Also in 30 other industries, the establishment covered had employment cut-off at 5 or 10or 20 employees. The list of these establishments 'is updated as soon as results of the latest annual survey are'available./2 (e) The weighting pattern derived 'from the 1968 'industrial census is outdated and' should' be replaced 'by a more. recent year say 1978 or 1980. In fact, the necessity of'changing weights is largely governed by the overall growth of industrial activity and the dispersion among component growth rates;/3 both of these consid- erations, suggest a frequent change in Malaysia. In practice, there is a trade-off between maintenance of a reasonably up-to- date base'year,' which entails fairly frequent changes in it, and maintenance of an additive consistency over a long period of time. It,is, therefore, not possible to suggest any "optimal" procedure for change, but every five years seems appropriate for' the Malaysian economy./4 (f) It does not measure value added at constant prices. Whenever both. input and output measured at constant prices do not change in the same proportio'n, this method leads to a biased result even if the output volume index itself is free of measurement errors.' The' Government may like to examine the appropriateness of using the Producer Price Indices for this purpose. /1 One of the main reason for extending the coverage to. include Sarawak is the dominance of two industries, i.e. petroleum refining and' saw-milling over there. As a result even if the share of Sarawak-s total manu- facturing output in the whole of Malaysia is not 'substantial, still 'it may be quite significant 'in certain industries. /2 The monthly survey covered five more, industries beginning 1977; they are not counted because the published statistics do no,t yet include them. /3 The annual survey also only partially covers the 71 industries that 'had cut-off points in 1974, the remaining 45 industries were completely enumerated industries in the monthly survey. The rationale for incom- patibility between the annual and monthly surveys is not self-evident. /4 Manual on National Accounts at Constant Prices; Series M, no. 64 (United Nations, New York, 1979). ANNEX Page 6 7. Two general points should also be kept in mind while revising the index of industrial production. First, index numbers are essentially practical constructs and cannot be considered in abstract, devoid of the economic and statistical theories. It is important to distinguish between two kinds of errors or divergence of estimates from "true" value: sampling errors arising from the fact that the data are sample of the whole, and non- sampling errors originating in a range of factors (other than sampling) affecting the data, such as inaccuracies in the data and so the use of approximinations; the nonavailability of what is specified as needed and so the use of substitutes. Second, manufacturing of new products and improve- ment in product quality pose a continued challenge to ingenuity of the staff responsible for designing, constructing and updating an index of industrial products. 9. Management of Trade in Manufactuers. There is no international or standard definition/measurement of trade in manufactures./l The Government of Malaysia also has not devised its own standard measurement of manufac- tured exports, in terms of the SITC (Rev.) codes or otherwise. The present report is faced with four Malaysian measurementEt of manufactured exports, respectively used by MIDA, EPU, Ministry of Finance and Bank Negara Malaysia (BNM) out of which only BNM could provide a list of codes to the mission to elicit the industrial coverage of its definition. The figres published by Bank Negara and MIDA differ considerably; but to what extent those differ- ences in the nature of trade (gross or net of re-exports), or differences in industrial coverage, etc, is not known. Table A.1 reveals that variations between the two estiates of exports for major industrial products are quite large; that there appears to be neither a tendency toward convergence over time, nor emergence of any other systematic pattern, although the MIDA estimates are often higher than those of the BNM. MIDA's estimate of total manufactured exports was lower than that of the BNM for only 1971. Thus the difference even at the aggregte level varied from minus 9% in 1971 to plus 11% in 1979./2 Probably a more serious problem arises due to the large variations in the levels and concomitant growth rates of manufactured exports at the disaggregate level. Further, the unpublished estimates of manufactured exports in EPU's paper, "Growth and Structural Change in /1 Use of different definitions to measure manufactured exports leads to widely different results in terms of the absolute level, growth rates and structure of exports. See Vinod Prakash, Measuring Industrial Exports: A Comparative Statistical Study of Variations Arising from Differences of Definition (World Bank Staff Working Paper No. 225, February 1976). /2 MIDA's estimate of total manufactured exports less electrical machinery, wood products and metal products for 1979 exceeds that of BNM by more than M$ 700 million or 37%. ANNEX Page 7 Table A.1: DIFFERENCE IN MEASUREMENTS OF EXPORTS IN MANUFACTURES Major items BNM MIDA BNM MIDA BNM MIDA BNM MIDA Food products 85 108 152 246 256 389 336 485 Beverages & tobacco products 22 50 16 75 13 108 28 179 Textiles 30 24 72 84 134 145 258 267 Clothing 18 28 65 83 152 180 264 282 Footwear 8 14 19 32 38 56 55 76 Wood products (excl. furniture) 117 83 245 176 311 229 468 355 Rubber products 19 27 32 52 50 861 76 126 Chemical & chemical products 39 58 61 126 66 151 251 236 Petroleum products 113 31 166 46 108 85 36 Nonmetallic mineral products 19 22 19 30 28 50 48 66 Iron & steel 9 21 11 56 16 49 n.a. 109 Metal products (exel. machinery) 12 16 23 43 40 68 170 110 Electrical machinery, parts, etc. n.a. 22 251 218 828 858 2,253 2,050 Total (including others) 613 574 1,682 1,802 2,810 3,032 4,793 5,126 Note: BNM exports relate to Malaysia and are gross of re-exports for 1971 and 1979, and net of re-exports for 1974 and 1977. MIDA exports relate to Peninsular Malaysia and are "net exports," whether they are net of re-exports or net of exports to Sabah or Sarawak, or net of both, is not clear. Sources: Annex Tables 3.2 and 3.4. -13- ANNEX Page 8 Commodity Exports" are different from the published estimates of Bank Negara and MIDA./1 10. Contribution of Manufactured Exports. Lack of a standard defini- tion of manufactured exports was not the only problem faced the Mission in analyzing the growth performance and outlook of Malaysia's manufactured exports. The Mission needed disaggregated statistics for the manufacturing activity on sales, value addded, employment, investment, etc. so that exports and output can be matched and at least the correct factor - intensities of exports and production can be ascertained. It also needed the export and production statistics relating to firms (by subsectors, size and location) taking advantage of various incentives granted by the Govern- ment./2 Some of these statistics (even at a relatively aggregate level) are not available at all, and some are not available beyond 1974. Moreover, as far as the production and related statistics are concerned, the entire manufacturing sector is not covered more than once evey five years even up to 1974. Since the available input-output table is outdated as it relates to 1970-1971, indirect effects of export expansion could not be ascertained. For instance, the growth performance of the exports of electronics is said to be primie facie an "outstanding success." But a number of important issues can hardly be resolved due to a lack of Information, such as what is the extent of domestic value added; and what inputs (besides low wage, efficient labor) are supplied by domestic producers; how and to what extent the Malaysians are learning the sophisticated electronic technology and international marketing; the extent of net exports by firms located in FTZs;/3 information on firms outside FTZs (who are able to compete in the /1 Moreover, in the context of international comparisons this report had to rely on two other definitions which are generally used in cross-country studies due to convenience in their measurement: SITC (Rev) codes 5 to 8, and SITC (Rev) codes 5 to 8 minus 68. Since export of tin and alloys are included in SITC (Rev) 68, uneven treatment of code 68 leads to substantial differences in the measurement of Malaysia's manufactured exports. Finally, the industrial coverage of both these definitions is partial as they do not include a variety of processed or manufactured products, such as food products; beverages; tobacco manufactures; synthetic rubber and substitutes; pulp and paper; petroleum products; manufactured gas; animal, vegetable oils, processed fats. The first definition was also used to compare the growth of exports from FTZs to that of the rest of the Malaysian economy. /2 The Mission recognizes that some of the data will not be available due to the confidentiality requirements, and may be gathered for a specific study by researchers or analysts. /3 The available data relate to the total merchandise trade or its disag- gregation by SITC (Rev) one digit codes. As expected, FTZ's exports/ imports-have grown more rapidly than those of Malaysia as a whole. -14- ANNEX Page 9 international market despite not being (direct) beneficiaries of FTZs incentives); and what sort of linkages, if any, are established with other domestic producers. If the manufacturing activity is confined only to assembly and/or sub-assembly processes, then the scope of transfer of technology to Malaysians may be very limited. Similarly, if the marketing is exclusively handled by multinationals without any explicit requirement of participation by Malaysians, Malaysia's gains in acquiring knowledge of international marketing also will be fairly limited. And if the infrastructural facilities are supplied by the Government at a subsidized rate, the social cost exceeds the private cost of producing "electronics." 11. An attempt to estimate the direct contribution of manufactured exports to employment and output further revealed several statistical dis- crepancies (see Annex, Table 3.7). In particular, the employment created in a sector is often less than the sum of' jobs created in its subsectors, and this may also apply to lower levels of disaggregation. Such discrepan- cies may arise if exports are relatively more labor-intensive (in terms of the labor required to produce one unit of output), or because.of the data deficiencies. Since the results may be intermingled with both effects, they cannot be disentangled until the data base improves. Moreover, both methods used for estimating the "contribution" imply certain 'assumptions. For instance, both assume that all the manufactured exports are (essentially) produced in establishments covered in the official Monthly Industrial Sta- tistics, as widely 'believed in the Malaysian official circles. Further, the first method implies that any change in labor productivity (in terms of "sales" per employee) in any subsector or industry uniformly applies to all establishments irrespective of the size, location, nature of ownership or vantage point, whereas the second method implies that the establishments existing in 1973 were completely immune from any change in labor productiv- ity (at least) until 1978. However, a more serious difficulty is that noth- ing is known about the cost of creating those jobs; nor is it known if there are any significant differences in the production characteristics of goods manufactured for exports and those manufactured for domestic consumption or usage. In the absence of this information, the net contribution of export- ing is hard to determine. The inadequacy or lack of data prohibit even a rudimentary analysis in terms of value added, investment, labor skills, private and social costs and benefits, etc. 12. The Mission recognizes that the recently established Malaysian Export Trade Center should be able to overcome some of the inadequacies,/l /1 The center is conducting a suppliers study in collaboration with UNDP. It has completed the field work for a survey of more than 800 exporters and is building an export registration file. The survey results will provide information at least about the direct exporters; they are likely to indicate the constraints faced, and the extent of use of domestic inputs and capacity utilization by them. ANNEX Page 10 but strengthening of the data base for analytical purposes will require a lot more. It may also be useful to develop empirical measures to ascertain the factors responsible for Malaysia's growth of exports, especially from the viewpoint of learning lessons for strengthening the future preformance in the area of manufactured exports. These measures pertain to a wide variety of economic characteristics which determine trade patterns and comparative advantage,/l such as capital-labor ratios, skill intensity, product cycle, technological gap, scale economies, production characteris- tics. From a practical angle the choices are to be narrowed down to those which lead to policy implications of greater significance to the Government of Malaysia, and are adequately supported by the anticipated improved industry and trade data base in Malaysia. It will, therefore, be very useful to take steps to improve the timeliness and presentation of basic industrial statistics so that sufficiently disaggregated data on at least selected manufactured export products are made available on the employment by skill levels (professional technical, scientific, managerial; highly skilled, semiskilled, unskilled workers etc.) along with respective salaries and wages; physical capital stock, value added; disposal of manufactured output in terms of exports by markets and domestic usage (or consumption) by sector. Malaysia is among the few developing countries for which such data is available, but it is outdated. Moreover, the data on extent of dependence on imported materials and components, extent of materials and components supplied by domestic manufacturers, aggregate cost of export incentives provided for FTZs, and acquisition of "special skills" by Malaysians working at transnational and other foreign firms should also be compiled. /1 For an excellent review see the following: Jagdish Bhagwati and T.N. Srinivasan, "Trade Policy and Development" in R. Diornbusch and J.A. Frenkel (eds.), International Economic Policy: Theory and Evidence (Johns Jopkins Uniuversity Press, Baltimore, 1978); Bela Balassa, "A 'Stages Approach' to Comparative Advantage," in Economic Growth and Resources, Proceedings of the Fifth World Congress of the International Economic Association, Tokyo, 1977 (Macmillan, London, 1979); Juergen Donges and James Riedel, "The Expansion of Manufactured Exports in Developing Countries: An Empirical Assessment of Supply and Demand Issues," Welrwirtschaftliches Archiv, pp. 58-87, 1976; R.M Stern, "Testing Trade Theories," in P.B. Kenen (ed.) International Trade and Finance (Cambridge University Press, Cambridge, 1975); G.C. Hufbauer, "The Impact of National Characteristics & Technology on the Commodity Composition of Trade in Manufactured Goods," in Raymond Vernon (ed.), The Technology Factor in International Trade (National Bureau of Economic Research, New York, 1970). -16- ANNEX Page 11 Some Suggestions for Improving the Data Base 13. The analysis of growth performance, especially the evaluation of the manufacturing data base, shows that the principal inadequacies of the data pertain to: (a) timeliness, (b) presentation and (c) coverage. In brief, the fundamental issue is improvement of basic industrial statistics, as well as its easy accessibility to analysts and policy-makers. Another issue is the proliferation of official agencies engaged in generating basic industrial statistics with little coordination among themselves, thereby, leading to less than satisfactory use of national resources. 14. First we discuss the "proliferation" issue which is neither unique to Malaysia nor is it unknown to the Malaysian authorities. In fact, they have a committee to cooordinate industrial statistics, representing, inter alia, Department of Statistics (DOS), MIDA, MTI, EPU, BNM and Department of Treasury. Moreover, the issue has also been discussed at a higher level by the National Development Planning Committee (NDPC). The Mission strongly recommends a revamping of' the coordinating committee to enable it to be more effective in achieving its objectives. As a rule, DOS, as the principal data generating agency, possesses the professional expertise and experience needed for periodic collection of basic industrial statistics and data processing. Its resources for processing and editing of data should be augmented in order to meet a timely delivery of user-oriented output. Greater coordination and meaningful dialogue among the generating and user agencies (including private trade associations and "academics") will also ensure a more useful presentation of basic statistics. MIDA and MTI, as the principal user agencies should ensure that the statistical information needed by them is collected, processed, edited, analyzed and made available to policy-makers in a useable form. EPU as the central planning authority should ensure that resources allocated for the statistical'work are consis- tent'with the overall national priorities. It, together with BNM and Department of Treasury, should also ensure that the industrial statistics work program appropriately subsumes the implications of intersectoral interdependence so as to meet the needs of other official agencies as well as those of MIDA and MTI. The user agencies (BNM, EPU, Department of Treasury, etc.) naturally generate secondary industrial statistics. These statistics should also be appropriately coordinated. For instance, they should devise and use a mutually acceptable definition (measurement) of industrial (manufactured) exports, or investment indicators. 15. The aforesaid joint effort of the official agencies needs to be supplemented by drawing upon the resources of certain nonofficial agencies. For instance, it can be far more cost-effective to contract local academic or research institutions to conduct certain studies than to conduct them -17- ANNEX Page 12 inhouse by either of the official agencies./1 In general, studies which are exploratory in nature, which are not periodic, which involve limited field operations, which need indepth analysis of complex relationships and so on may be most appropriate for contracting to these institutions. For instance, studies on economies of scale, effective protection, economic efficiency, comparative advantages, net contribution of FTZs to the national economy etc. can be suitably 'formulated and implemented only if designed and conducted by experts in the respective fields. Finally, it will be desirable to forge close links with manufacturers' associations, chambers of commerce, etc. partly to ensure that government's data gathering operations do not impose excessive demands on their time and partly to ensure their full cooperation in improving the manufacturing data base. 16. Second, data processing appears to be the critical problem faced by DOS in turning out its reports within a reasonable time. A fairly wide spectrum of latest available annual statistical reports seems outdated: national accounts (1977, still preliminary); manufacturing, mining, construction and distributive trade statistics (L974, still partial in coverage), financial survey of limited companies (1976, partial coverage), household (consumer) expenditure survey (1973, results still incomplete and too aggregated), external trade statistics (1977, though tapes and computer printouts may be available for 1978 and the first three quarters of 1979),. Many other reports of DOS, on the other hand, are reasonably up-to-date though time-lags should be reduced, such as consumer price index, producer price index; yet some others are up-to-date though not comprehensive and disaggregated, such as monthly industrial statistics, index of industrial production. DOS recognizes most of these problems and plans to skip data collection and processing for some intervening years in order to overcome the processing backlog. Further, in collaboration with user agencies (includin'g trade organizations), DOS should recast its report to a more user-oriented format./2 /1 Also the end product can be of a better quality because of the use of most appropriate (perhaps latest) methodology, conceptual refinements and broader perspective. Moreover, academic/research institutions are the source of supplying qualified and trained professional staff to official and other agencies. Through these contracts these institutions can strengthen their capability to provide the training and experience that are needed by the government staff for conducting economic and statistical 'analyses. /2 For instance, manufacturing investment estimates should be included in Principal Statistics tables. Content of salaries and wages should be clearly spelled out. Size distribution tables should include statistics on fixed assets. ANNEX Page 13 170 Finally, DOS should ensure that the entire manufacturing activity in Malaysia is annually covered through shorter questionnaire and appropriate sampling procedures. A review of all the periodic manufacturing surveys (monthly, quarterly, annual and quinquennial) now conducted by DOS may be needed to ensure that all the four segments of the manufacturing sector (that is cottage/household, small, medium and large establishments) are periodically covered through suitably modified questionnaires and field procedures. In particular, cottage/household establishments belonging to the informal manufacturing sector should be covered through a household enterprise survey, mainly because the reporting unit (a household) may be engaged in multisectoral productive activities instead of almost exclusively engaged in manufacturing and a questionnaire different from that for the formal manufacturing sector will be needed. Small establishments should ba annually covered through a sample survey. Medium and large establishments should have a shorter questionnaire for their annual survey to reflect a more realistic balance between data collection and statistical analysis./l In general, the detailed inquiry (as annually done now) may be conducted only once every three years or soo Periodically, however, a special sample survey should be conducted to collect information on characteristics whose measurement is more problematic than those covered in a routine annual survey0/2 Further, as a practical approach to maximize effectiveness of limited resources that can be allocated for improving manufacturing statis- tics, one should take avantage of the regional concentration in manufac- turing activity through the use of suitable sampling procedures0/3 180 MTI and MIDA are aware that a pragmatic and professional approach to the statistical information system will be essential to meet most /1 For instance, the size of the questionnaire which now has about 700 data elements can be drastically reduced if the main objective of the survey is to provide annual data on broad economip characteristics such as employment, wages and salaries, value addeed, gross output0 The itemized detailed information on employment, inputs, output, etc0 is seldom used except for constructing an input-output table or conducting a special study, none being annual exercises. /2 For instance, knowledge regarding the size of installed capacity the extent of its utilization, the causes and consequences of under- utilization in manufacturing establishments should assist the Govern- ment in monitoring the effectiveness of its investment policies. Such a study cannot be meaningfully conducted without participation of a specialized, well trained and experienced staff. /3 For instance, every periodic survey (and more so special studies) may not be conducted in every state, and overlapping samples may be used in every two consecutive rounds of a survey. -19- ANNEX Page 14 effectively the new challenges they face as Malaysia's industrial base becomes more and more sophisticated over time. The industrial policymakers, more than ever before, need the statistical information distilled through rigorous data evaluation and sound economic analysis. Perhaps the best MTI and MIDA can do in this area is to concentrate on this vital area of work which seems to be a neglected link to date between generation of abundant basic data and its limited use for analysis. In order to fully digest the implications of thousands of numbers produced periodically and to feed back effectively to correct any deviation from the expected path and incorporate further improvements, the policymakers need strong support from a core of economic and data analysts. The statistical information, even if it is abundantly available in an improved form as suggested above, will not, by itself, be of much use to policymakers unless MTI and MIDA simultaneously intensify their efforts towards strengthening their analytical capabilities to enable them to conduct policy-oriented quantitative analytical studies. 19. Consequently, it would not be cost effective for MIDA and MTI to continue periodic collection of routine basic statistics, which can be done more effectively by DOS as suggested above./l Moreover, DOS is a statistical agency that guarantees complete confidentiality of data to all reporting units and is perceived to maintain credibility among them, should be in a better position than any administrative department to have access to "true information." Misreporting or distortions in statistical information cannot be completely eliminated. But their seriousness and extent can be reduced by adopting appropriate measures including an effective use of nonadministrative official agency. It is then clear that DOS should not be expected, under any circumstances, to divulge information in such a way that an individual reporting unit can be identified. For the sake of preserving the confidentiality of DOS data and for other reasons, MTI or MIDA may collect selected manufacturing statistics which are of special operational interest to them. For instance, while monitoring the implementation of incentives, policies or financial and technical assistance programs to Bumiputras, they may wish to have information not only at district or subdistrict level but also at estalishment level with full identification. Further, they may require statistical information for some urgent policy considerations (say, arising from unanticipated changes in world trade environment) at such a short notice that DOS cannot deliver it in time (such instances, of course, are not always avoidable). /1 This suggestion should apply to almost all periodic collections. If DOS is currently not collecting information that is periodically needed by MIDA, MTI or any other user agency, DOS should be expected to take all necessary steps in accordance with the directives of the abovementioned coordinating committee. -20- ANNEX Page 15 20. It is apparent that the planning and budgetary implications of the above-mentioned suggestions will have to be worked out, though a great deal of improvement (especially concerning timeliness and presentation of available basic data) can be achieved without incurring substantial cost. At this stage, nonetheleess, some points are mentioned to abet serious thinking, expedite action and ensure effective implementation of urgently needed improvements in the manufacturing data base so that the Mid-Term Review of FMP can be based on a sound empirical foundation. For instance, intensive training of field staff will require considerable time for planning, designing and other necessary preparation for conducting sample surveys to supplement the coverage (industrial, employment and geographical); field staff may need motor vehicles and also telephones, because of the later geographical coverage and more frequent visits to some reporting units; pilot studies may be necessary for almost all special studies, and each study will require adequate staff support even if it may be contracted to a university; new demands will be created on the data processing facilities, not only for processing basic data but also for editing and analysis; better planning and coordination may be necessary to ascertain that different stages of the informtion system, from planning of a survey and designing the questionnaire to analysis of the data, are well integrated; establishing a core of sound economic and data anaylsts requires considerable lead time and these analysts, in turn, need well trained support staff. -21- LIST OF ANNEX TABLES 1. NATIONAL ACCOUNTS 1.1 Malaysia: Gross Domestic Product by Kind of Economic Activity: Levels, Structure & Growth Rates, 1960, 1965, and 1970-1980 at Constant Prices 1.2 Malaysia: Expenditure on Gross Domestic Product at Constant and Current Prices, Population & GNP Per Capita, 1971-1980 II. PRINCIPAL STATISTICS ON MANUFACTURING SECTOR 2.1 Malaysia: Structure of Manufacturing Value Added by Divisions and Major Industrial Groups, 1938, 1948, 1953, 1958, 1963, 1970 and 1975 2.2 Peninsular Malaysia: Selected Summary Data on Manufacturing Sector, 1963-1974 2.3 Peninsular Malaysia: Numbers of Establishments and Paid Employees and Their Salaries and Wages in Manufacturing Sector by Major Industrial Groups, 1959, 1963, 1968 and 1973 2.4 Peninsular Malaysia: Number of Establishments and Value Added Structures, and Value Added and Salaries & Wages Per Employee in Manufacturing Sector by Major Industrial Groups, 1959, 1963, 1968 and 1973 2.5 Peninsular Malaysia: Value Added in Manufacturing Sector by Major Industrial Groups: Levels, Growth Rates and Contribution, 1959, 1963, 1968 and 1973 2.6 Peninsular Malaysia: Principal Statistics for Manufacturing Sector by Fixed Assets Size, 1973 2.7 Peninsular Malaysia: Prncipal Statistics Sector by Paid Full- Time Employment Size Between 1968 and 1973 2.8 Peninsular Malaysia: Changes in Manufacturing Sector by Paid Full-Time Employment Size Between 1.968 and 1973 2.9 Peninsular Malaysia: Employment and Sales Value of Selected Own Manufactured Products, 1973-1]979, and Census 1973 Output 2.10 Peninsular Malaysia: Index of Manufacturing Production by Major Industrial Groups and Selected Products, 1968-1979 with 1968 and 1973 Census Weights -22- 2.11 Peninsular Malaysia: Value Added as Percent of Gross Output by Major Inndustrial Groups, 1959, 1963, 1968, 1970 and 1972-1974 2.12 Peninsular Malaysia: Value Added & Gross Output of Selected Industries 1963, 1968 and 1973 'II. INTERNATIONAL TRADE IN MANUFACTURES 3.1 Malaysia: Manufactures and Other Merchandise Exports and Imports by SITC (Rev) Sections: Levels,; Structure and Growth Rates, 1960, 1965, 1970 and 1975-1979 3.2 Malaysia: Exports of Manufactured and Other Major Products: Levels, Structure and Growth Rates, 1960, 1965 and 1970-1979 3.3 Malaysia: Imports by End-Use: Levels, Structure & Growth Rates, 1961, 1964, 1969 and 1974-1979 .3.4 Peninsular Malaysia: Exports of Resource/Non-Resource Based Manufactured Products: Levels, 'Structure and Growth Rates, 1971-1979 3.5 Malaysia: Exports of Manufactured and Other Products: Levels, Structure and Growth Rates, 1969-1977 at Constant Prices 3.6 Malaysia: Manufactured and Merchandise Exports by SITC (Rev) Sections and Selected Destinations, 1973 and 1978 3.7 Peninsular Malaysia: Manufactured Exports, Sales, Gross Output and Employment by Divisions and Selected Products, 1973 and 1978 IV. INVESTMENT IN MANUFACTURING SECTOR 4.1 Malaysia: Proposed Total Investment in MIDA-s Approved Projects by Year of Approval (1974-1979) and Actual Total Investment by Pioneer Companies (1968-1979) by Major Industrial Groups 4.2 Malaysia: Malaysian and Foreign Capital Investment as at December 31, 1977 in Industrial Projects Approved and Implemented 4.3 Malaysia: Malaysian and Foreign Capital Investument in All Industrial Projects and Pioneer Companies Approved by MIDA, 1968-1979' 4.4 Malaysia: Imports of Machinery and Transport Equipment, 1967 and 1970-1978 4.5 Malaysia: Indicators of Private Investment in Manufacturing and Whole Economy, 1970-1979 -23- V. FINANCING OF MANUFACTURING SECTOR 5.1 Malaysia: Commercial Banks and Finance Companies, Outstanding Loans and Advances by Major Industrial Groups, 1965 and 1970-1979 5.2 Malaysia: Loans Approved for Major Industrial Groups, Total Loans Approved for New Expansion Projects and Loans Disbursed by MIDF, 1968/69-1979-80 5.3 Malaysia: Size Distribution of Loans Approved by MIDF, 1971-1979 VI. SUBSECTOR STUDIES 6.1 Malaysia: Export of Wood Products 6.2 West Malaysia: Production Indexes of Light Industry Subsectors 6.3 West Malaysia: Production and Exports of Logs and Sawn Timber 6.4 West Malaysia: Estimated Area Under Cultivation 6.5 West Malaysia: Agricultural Production of Major Crops 6.6 Malaysia: Exports of Rubber and Rubber Products 6.7 Productivity of Workers in Tire Manufacturing 6.8 West Malaysia: Supply of Oil Palm, Fresh Fruit Bunches (FFB) and Capacity of Mills 6.9 Scope of the Electrical and Electronics Industries 6.10 Malaysia: Main Indicators of the Electrical and Electronics Industries 6.11 Malaysia: Structure of the Electric and Electronics Industries (1977) 6.12 West Malaysia: Growth of Output of Textile and Garments Industries 6.13 West Malaysia: Production of Yarn and Cloth 6.14 West Malaysia: Employment in Textile Industries 6.15 West Malaysia: Exports of Textile Products -24- 6.16 West Malaysia: Production of Fresh Pineapple and Pineapple Products 6.17 Malaysia: Exports of Pineapple Products 6.18 West Malaysia: Production of Oil Palm 6.19 Malaysia: Exports of Palm Oil VII. INCENTIVE SYSTEM AND POLICIES 7.1 Number of Applications to Tariff Unit, 1970-78 7.2 Average of Sectoral Nominal Tariff Rates in Malaysia, 1963-1977 7.3 Nominal Tariff Rate in West Malaysia, 1969 7.4 Nominal Tariff Rate in West Malaysia, 1973 7.5 The Average Import Duty by Industries as at 31st December 1975 7.6 The Average Import Duty by Industries as at 31st December 1977 7.7 Previous Studies on Nominal Protection Rate (NPR) and Effective Protection Rate (EPR) 7.8 Import Duty and Surtax Exemptions for Intermediate Input Imports in the Manufacturing Industries (1973-1979) 7.9 Import Duty and Surtax Exemptions for Machinery Imports in the Manufacturing Industries (1973-1979) 7.10 Quota Amount of Import Restricted Items (Q and Nil): Frequency Distribution for 1968, 1974, and 1980 7.11 Period of Imposing Import Restrictions (Q and Nil): Frequency Distribution for 1968, 1974, and 1980 7.12 Nominal and Export or Import Price Index (Relative to Malaysia Price Index) - Adjusted Foreign Exchange Indices Measured in Terms of the Official Composite of Foreign Currencies per Ringgit 7.13 Purchasing-Power-Parity Adjusted Exchange Rate Index (1975=100) 7.14 Computation of Purchasing-Power-Parity Adjusted Exchange Rate Index 7.15 Estimates of Trade Bias Measure (TMB) in the Manufacturing Industries in the Early -70s -25- 7.16 Estimation of Tariff Exemption Rate (1978): Non-FTZ & LMW Export vs Domestic Use 7.17 Estimation of Benefits from Export Allowance vs Tariff Exemption on Imported Inputs for Non-FTZ & LMW Manufactured Good Exports in 1978 7.18 Size (Gross Sale) Distribution of Firms in the Manufacturing Industries (Peninsular Malaysia): All vs PS Establishment in 1969 and 1974 7.19 Proposed Investment Size and Investment per Worker: PS vs WTI Projects, 1973-79 ANNEX TABLE 1.1: MALAYSIA: GROSS DOMESTIC PRODUCT BY KIND OF ECONOMIC ACTIVITY: LEVELS, STRUCTURE & GROWTH RATES. 1961. 1965. 1970-1980 AT CONSTANT PRICES ECONOMIC ACTIVITY LEVELS IN M$ MILLION IN 1970 PRODUCERS' VALUE STRUCTURE (%) ANNUAL GROWTH RATES (%) 1971 1972 3/ ~~~~~~~~~~~~~~~~~~~~~~~~~~1971- 1975- 1971- 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1971 1975 1980 1973 1980 1980 Agriculture, Livestock Forestry & Fishing 3,852 4,146 4,634 4,954 4,804 5,307 5,423 5,480 5,787 5,990 29.6 27.7 23.4 5.7 4.5 5.0 Mining and Quarrying 834 889 852 796 792 955 967 1,093 1,213 1,286 6.4 4.6 5.0 -1.3 10.2 4.9 ManufacturinR 1.858 2,047 2.508 2,768 2,850 3.377 3.735 4,258 4.769 5.246 14.3 16.4 20.5 11.3 13.0 12.2 Electricity, Gas & Water 238 275 304 337 365 400 442 485 526 560 1.8 2.1 2.2 11.3 *,9 10.0 Construction 541 571 651 729 654 713 800 904 1,030 1,150 4.2 3.8 4.5 4.9 12.0 8.7 Wholesale & Retail Trade 1,579 1,695 1,874 2,025 2,019 2,196 2,367 2,825 3,022 3,185 12.1 11.6 12.4 6.3 9.6 8.1 Transport & Communication 632 720 827 947 1,071 1,153 1,290 1,412 1,525 1,617 4.8 6.2 6.3 14.1 8.6 11.0 Banking, Insurance, 1,126 1,213 1,311 1,394 1,468 1,552 1,649 1,815 1,905- 2,000 8.6 8.4 7.8 6.9 6.4 6.6 Government Services 1,466 1,718 1,810 2,062 2,210 2,420 2,719 2,752 2,962 3,210 11.3 12.7 12.5 10.8 7.8 9.1 2/ Other Services 492 536 587 633 678 726 783 605 644 676 3.8 3.9 2.6 7.1 -0.1 3.6 Less Bank Service Charge 143 162 178 187 211 218 244 269 289 310 -1.1 -1.2 -1.2 10.2 8.0 9.0 ImuoftrDuties 541 590 724 769 665 707 822 925 990 1,040 4.2 3.8 4.0 5.3 9-4 7.5 GDP in Purchasers' Values 13,016 14,238 15,904 17,227 17,365 19,288 20,753 22,285 24,084 25,650 100.0 100.0 100.0 7.5 8.1 7A!.. _- -- - - -- - -- --- - - - - - -- - - -- - - - _ _ _ _ _ _ __ _ _ _ _ _- -_-_- -_- _-- _-_- - _-_- - _- _- - _-_-- _- __-_-_ _- _-_ _-_- _ _-_-__-_- __- _-_ _ _- __- _-_ _ _-- _- _-- _-_- -_- _-- _- _ _ _ _ _ _ _ _-_- -_- _ _-_-__-_-_ _-_- __- _- _ _- _-. _-_- __- _- __- _-_ _-_- -_- _ --_ -_ - -_ -_ - -_ -_ - -_-_ - _ _ --_ -_ - _ _ - -_-_ _-_ -_ _-_ -_ _- _ -_ _ -_-_ _ -_-_ _ -_-_ _ -_-_ _ -_ -_ _ -_ - LEVELS IN MS MILLION STRUCTURE (%) ANNUAL GROWTH RATES (%) At 1964 Prices At 1965 Prices At 1964 Prices At 1965 Prices 1961- 1965- 1961- Economic Activity 1961 1965 1961 1965 1970 1961 1965 1965 1970 1965 1970 1970 Agriculture, Forest'y & Fishing 1,706 1,943 1,814 2,066 2,877 31.7 29.0 31.5 33.6 3.3 6.9 5.3 Mining and Quarrying 477 532 526 587 619 8.9 7.9 9.0 7.2 2.8 1.1 1.8 Manufacturing 444 702 431 682 1.094 8.3 10.5 10.4 12.8 12.1 9.9 10.9 Construction 206 318 174 269 329 3.8 4.8 4.1 3.8 11.5 4.1 7.3 Services 2,545 3,205 2,339 2,948 3,650 47.3 47.8 45.0 42.6 5.8 4.4 5.1 Gross Domestic Product 5,378 6,700 5,284 6,552 8,569 100.0 100.0 - 100.0 100.0 5.6 5.5 5.5 1/ And Real Estate including owner occupied dwellings. 2/ Includes restaurants & hotels; community, social & personal services; producers of private non-profit services to household & domestic services of household. 3/ Estimate by Inter-Agency Planning Group (IAPG). Sdurces: 1) 1971-77: National Accounts Statistics. 1971-77 (Department of Statistics, Malaysia) 2) 1978-80: Etonomic Report. 1979-80 (IMinistry of Finance, Malaysia) 3) 1961-70: Quarterly Economic Bulletin. September 1979 (Bank Negara Malaysia) ANNEX TABLE 1.2: MALAYSIA: EXPENDITURE ON GROSS DOMESTIC PRODUCT AT CONSTANT AND CURRENT PRICES. POPULATION & GNP PER CAPITA. 1971-1980 LEVELS STRUCTURE (7.) 1/ 1/ 1/ DESCRIPTION 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1971 1975 1980 (MS Million in Purchasers' Value at 197U Constant Prices) Final Consumption fGovt. 2,078 2,429 2,540 2,919 3,117 3,382 3,714 3,874 4,345 5,223 16.4 18.4 21.1 Expenditure tPrivate 7,731 8,132 8,918 9,722 9,631 10,219 11,172 12,463 13,772 14,736 61.0 56.9 59.5 Gross Fixed fGovt. 1,021 1,205 1,482 1,668 1,951 2,001 2,448 3,022 8.8 12.2 1 2,609 2,995 20.6 Capital Formation LPrivate 2,468 3,047 2,454 2,465 2,726 3,076 3,431 3,742 14.5 15.1 Increase in Stocks -26 -200 67 450 -266 -38 225 256 294 -100 -0.2 -1.6 -0.4 Exports of Goods & Services 5,480 5,591 6,384 7,401 7,179 8,397 8,704 9,330 9,816 10,110 43.3 42.4 40.8 Less Imports of Goods & Services 4,856 4,709 5,494 7,517 6,232 6,805 7,739 8,715 10,022 11,083 -38.3 -36.8 -44.7 GDP in Purchasers' Value 13,016 14,238 15,904 17,227 17,365 19,288 20,753 22,285 24,084 25,650 102.7, 102.6 103.5 Net Factor Payments to the Rest of the World -349 -335 -539 -682 -449 -545 -681 -750 -820 -880 - 2.8 - 2.6 - 3.6 Expenditure on GNP at Market Prices 12,667 13,903 15,365 16,545 16,916 18,743 20,072 21,535 23,264 24,770 100.0 100.0 100.0 Population (thousands) 10,695 11,003 11,309 11,607 11,922 12,236 12,563 12,910 13,259 13,617 -- -- -- GNP Per Capita (M$) 1,009 1,071 1,139 1,184 1,203 1,282 1,342 1,668 1,755 1,819 -- -- -- (MS Million in Purchasers' Value at Current Prices) Final Consumption fGovt. 2,170 2,738 2,919 3,516 3,924 4,301 5,388 5,722 6,573 8,288 17.2 18.2 18.4 Expenditure tPrivate 7,911 8,613 10,450 12,776 13,086 14,594 16,655 19,420 22,624 25,610 62.8 60.6 57.0 Cross Fixed rC.ovt. 1,203 1,644 2,110 2,505 3,078 3,419 4,571 6,233 9.8 13.9 < ~~~~~2,701 3,211 21.S Capital Formation tPrivate 2,908 4,154 3,492 3,701 4,265 5,208 6,428 7,740 16.2 17.2 Increase in Stocks -13 -150 86 714 -381 -71 168 651 355 -135 -0.1 -1.8 -0.3 Exports of Goods & Services 5,242 5,121 7,767 11,043 10,172 14,554 16,216 18,427 22,597 24,224 41.6 47.1 53.9 Less Imports of Goods & Services 5,056 5,313 6,711 10,989 10,071 11,620 13,507 16,350 20,683 25,170 -40.1 -46.6 -56.0 GDP in Purchasers' Value 12,955 14,220 18,622 22,858 22,332 27,964 32,263 36,497 42,465 46,790 102.9 103.4 104.2 Net Factor Payments to the Rest of the World -363 -378 -659 -997 -726 -931 -1,189 -1,407 -1,725 -1,869 -2.9 -3.4 -4.2 Expenditure on GNP at Market Prices 12,592 13,842 17,963 21,861 21,606 27,033 31,074 35,090 40,740 44,921 100.0 100.0 100.0 1/ Estimate by Inter-Agency Planning Group (IAPG) Sources: See Annex Table 1.1 -28- AMNEX TABLE 2.1: MAIAYSIA: STRUGCTURE OF MANUFACTURING VALUE ADDED BY DIVISIONS AND MAJOR INDUSTRIAL GROUPS. 1938. 1948, 1953. 1958, 1963, 1970, AND 1975 Percent Distribution (Current Price rates in US$) ISIC (Rev. 2) Codes DIVISIONS/ Major Industrial Groups 1938 1948 1953 1958 1963 1970 1975 31 Food, Beverages & Tobacco Products 13.6 14.4 17.4 17.9 20.4 30.1 23.7 311B Food Products 11.9 18.1 17.6 313 Beverages 4.1 4.6 2.2 314 Tobacco Products 4.4 7,4 3.9 32 Textile. Wearing Apparel & Leather Products 11.5 11.5 9.5 8.7 1.5 3.9 6.9 321 Textiles 0.8 0.8 0.8 0.5 0.7 2.7 5.4 322F Wearing Apparel 10.5 10.5 8.0 7.9 0.2 0.8 1.2 324 Footwear 0.4 0.2 0.2 323 Leather, Leather Substitutes/Products 0.2 0.2 0.7 0.3 0.2 0.2 0.1 33 Wood & Wood Products 28.8 19.6 17.6 13.7 9.1 13.9 14.4 331A Wood Products 6.2 13.0 13.5 332 Furniture & Fixtures 1.9 0.9 0.9 34 Paper & Paper Products; Printing & Publishino 4.5 4.4 6.8 7.0 5.7 7.6 5.9 341 Paper & Products 0.5 0.7 0.4 0.8 0.9 342 Printing & Publishing 6.3 6.3 5.3 6.8 5.0 35 Chemical. Petroleux, Coal. Rubber & Plastic Products 17.5 25.8 26.8 32.5 44.4 21.0 21.4 351C Industrial Chemicals 6.1 6.7 6.0 6.0 4.1 3.1 2.3 352 Other Chemical Prodocts 8.7 6.6 3.3 353 petroleux Refinerisa 0.6 1.8 2.0 354 Petroleum & Coal Products 1.3 3.7 0.1 355 Rubber Products 6.6 14.4 IS.3 24.6 28.6 4.6 12.0 356 Plastic Products 4.8 4.7 2.5 1.9 1.1 1.2 1.7 36 Non-Metallic Mineral Products Except Petroleum & Coal 0.8 1.2 2.7 3.7 5.6 7.2 5.1 Froauct 3613 Pottery, China, etc. 0.3 362 Glass & Products 0.5 369 Non-metal Products 4.3 37 Basic Metal Industries 1.0 0.9 1.0 1.0 3.1 2.9 3.1 371A Iron & Steel 2.7 372 Non-ferrous Metals 0.4 38 Fabricated Metal Products, Machinery & Equipment 20.3 20.2 17.1 14.7 10.7 12.8 19.0 381C Metal Products 18.8 18.7 16.3 14.1 4.2 4.1 3.2 382 Machinery, n.e.c. 2.9 2.7 2.7 383 Electrical Machinery 0.9 2.3 10.1 384 Transport Equipment 2.3 3.3 2.5 385 Professional goods 1.5 1.5 0.8 0.6 0.4 0.4 0.5 39 Other Manufacturing Industries 2.0 2.0 1.1 0.8 0.5 0.6 0.4 Total Manufacturing 100.0 100.0 100.0 100.0 100,0 100.0 100.0 Light Manufacturing 1' 71.9 71.0 72.6 74.0 65.5 61.2 64.2 Heavy Manufacturing 1' 28.1 29.0 27.4 26.0 34.5 38.8 35.8 Toial Manufacturing (US 9 Mill) 99.2 134.9 169.2 218.3 170.4 444.7 1,243.8 Note: The value added data are supposed to match at least the industrial census coverage of a country, if not mDre comprehensive and comparable over time, 1V Light manufacturing consists of industry codes 31, 32, 33, 342, 355, 356 and 39. J Reavy manufacturing consists of industry codes 341, 351, 352, 353, 354, 36, 37 and 38. Source: Estimates of value added in industrial sector 1938, 1948, 1953, 1958, 1963, 1970 and 1975 (UN Statistical Office, Nev York, Computer Printout, 1979) ANNEX TABLE 2.2; PENINSULAR MAIAYSIA - SELECTED SUIARY DATA ON MANIUFACTURIING SECDgR, 1959 - 1974 First Malaysian plan Second Malaysitn Plan a! 4/ ul cl ci Unit 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1974 Gross Sales (M$ Mil) 951 1,142 1,053 1,232 1,421 1,670 1,955 2,166 2,302 2,733 3,280 3,937 4,164 5,125 10,113b/ Gross Value Added (MS Mil) 167 210 223 272 327 402 501 573 644 779 992 1,182 1,266 1,528 2,759 Paid Pull-Time Etmployees (000Pers 39.5 43.5 45.3 53.8 58.8 64.5 75.9 79.2 87.1 101.0 116.1 148.3 165.0 197.3 268.9 Salaries & Wages (M$ Nil) 132 167 193 201 261 324 363 429 724 "Surplus" e1 0$ Mil) 270 334 390 443 731 858 903 1,099 2,035 Fixed Assets (M$ Mil) 943.9 1,128.5 1,288.5 1.658.9 3,025.9 Establisbhents ('000) 1.58 1,60 1.60 2.37 2.36 2.38 2.81 2.83 2.96 3.10 3.19 3.19 3.37 3.69 4.70 Cross Value Added/ Gross Sales (5) 17.5 19.4 21.2 22.1 23.0 24.1 25.6 26.5 28.0 28.5 30.2 30.0 30.4 29.8 27.3 Gross Value Added! Per-Paid Nill-Tiae Ezpt. (55'000) 4.22 4.83 4.92 5.06 5.56 6.24 6.60 7.23 7.39 7.79 8.54 7.97 7.67 7.74 10.26 Salaries & wsges/ Per-Paid Full-Time Emipl. 2,050 2,200 2,310 2,310 2,250 2,190 2,200 2,170 Fixed Assets Per Paid Full Time Employee 8,130 1,610 7,!10 8,41D 11,250 'Surplus"/Valoe Added Ct) 67.2 66.7 68.1 68.8 73.7 72.6 71.3 71.9 73.8 'Surplus /Fixed Assets C 77.4 76.0 70.1 66.2 67.3 Cross Sales Per Establlshmlent (MS'000) 602 714 658 520 602 702 696 765 778 882 1,028 1,234 1,236 1,389 2,152 Paid Full Time Employees Per Establishment (No.) 25.0 27.2 29.3 28.3 22.7 24.9 27.0 26.0 29.4 32.3 36.4 46.5 49.0 53.5 57.2 f Note: Iadustries covered by the annual manufacturing surveys. Figures appearing in this table are smaller than those obtained from the census of Manufacturing Tedustrie, in Peninst'llr Maleysti 1959, 1963, n-d 1965, and th .3atioral ACco-OLs of Peninsular Malaysia, Department of Statistics, because of limited coverage. Also there vere changes in coverage in 1962, 1965, 1966 and 1970; coverage of industries expanded subetantially from 1970 onvards and in certain industries as employment nut-off of 5 or more paid full-tim employees has been used. a! Includes textile industry, not covered in previous annual surveys. b/ Includes sage and tapioca,and assembly of autotwbile and lorries, not covered in previous annual surveys. c/ Employment cut-off point revised: Five and ware full-time employees used in certain industries. d/ Census coverage may not be fully c-mparable to the annual survey coverage. e/ Surplus is defined as gross value added nin.s salaries snd sage,. Sources: 1959-1972: Data compiled for the World Bank Economic Uission (1975). 1973 and 1974: Census/Survey of Manufacturing Industries in Peninsular Malaysia (Departoest of Statistirs, Malaysia). -30- Annex Table 2.3: PENINSULAR MALAYSIA: NUMBERS OF ESTABLISHMENTS AND PAID EMPLOYEES AND THEIR SALARIES AND WAGES IN MANUFACTURING SECTOR BY MAJOR INDUSTRIAL GROUPS, 1959, 1963. 1968 AND 1973 /a ltIC Paid full-time (1972) Number of establishments equivalent employeea id ('000) Salaries and wages (MS mln) Codes Major industrial groups 1959/b 1963/c 1968/c 1973 1959/b 1963/e 1968/c 1973 1959Jb 1963/c 1968/c 1973 311-312 Food products 2,026 3,100 2,957 3,052 11.8 14.8 20.3 36.2 16.4 24.8 40.0 71.8 313 Beverages 84 94 76 73 1.9 2.2 2.3 3.0 3.4 4.4 7.4 10.8 314 Tobacco products 128 136 114 168 3.2 3.9 4.1 7.0 3.6 5.7 10.0 16.0 321 Textiles - 45 145 240 - 1.4 5.5 22.2 - 1.6 6.9 34.9 322 Wearing apparel, except footwear - 214 111 216 - 0.7 2.5 10.3 - 0.7 2.2 11.4 323 Leather, leather substitutes 6 fur - 27 32 53 - 0.2 0.3 0.8 - 0.2 0.4 1.0 324 Footwear - 189 160 169 - 0.4 0.5 1.6 - 0.6 0.6 2.7 331 Wood 6 wood & cork products 537 918 874 1,004 8.6 12.1 19.6 40.0 13.5 24.5 41.4 90.8 332 Furniture 6 fixtures 221 682 630 863 1.2 2.4 2.3 4.9 1.5 3.4 3.6 9.6 341 Paper & paper products - 79 104 152 - 0.6 1.4 3.5 - 9.3 1.9 5.6 342 Printing 6 publishing 209 325 371 475 4.2 6.9 9.5 13.9 7.2 15.6 23.1 38.9 351 Industrial chemicals } 107 } 280 32 54 ) 1.9 5 3.9 1.2 2.9 5 3.6 } 8.5 5.1 12.2 352 Other chemical products } 5 239 283 ) 5 4.2 6.6 } 5 12.2 22.6 353-354 Petroleum refineries, misc. products of petroleum 6 coal - - 6 10 - - 0.4 0.6 - - 4.5 6.6 355 Rubber products 229 414 420 561 13.2 15.3 18.1 24.0 20.4 24.9 35.9 52.1 356 Plastic products, n.e.r. - 27 76 299 - 0.6 1.9 8.6 - 0.7 2.5 12.7 361 Pottery, chins & earthenware 31 43 39 49 0.2 0.3 0.3 0.9 0.2 0.4 0.5 2.0 362 Glass 6 glass products 25 31 34 34 0.3 0.2 0.7 1.5 0.3 0.3 1.7 3.3 369 Nonmetallic mineral products, n.e.c. 116 241 249 332 2.2 4.5 6.3 10.6 3.5 8.4 15.3 27.0 371 Iron & steel basic industries } 5 39 68Že 189 5 5 0.7 1.0/e 6.1 5 1 1.5 1.81e 18.4 372 Nonferrous metals 5 313 } 9Le 9 5 2.5 } 2.1/e 0.7 5 3.6 5 6.1Že 2.5 381 Fabricated metal products 5 1,197 1,233 1,489 5 5.4 8.5 17.5 5 - 9.2 17.3 36.5 382 Machinery (except electrical 6 transport) 5 223 355 451 857 5 2.2 4.2 6.0 12.9 1 3.4 8.2 12.2 28.7 383 Electrical machinery 5 190 314 109 5 0.6 2.1 25.3 5 1.3 5.1 41.5 384 Transport equipment 301 100 123 173 2.5 1.6 3.6 8.5 3.9 3.5 7.3 22.7 385 Professional, scientific, photogra- phic equipment. etc. - - 4 26 - - 0.4 1.7 - - 1.0 3.0 390 Other manufacturing 454 130 142 121 3.7 1.2 0.5 1.7 5.1 4.2 0.8 2.3 Total 5,004 8.856 9,013 11,060 59.5 84.2 125.5 273.5 89.5 153.8 267.0 587.0 /a Excludes tailoring and dress making (code 32202) and jewelry and related articles (code 39010) in all the years. The data for 1959, 1963 and 1968 are available in the original sources according to the old industrial classification. An approximate matching to the new class- ification has been done by the mission. /b Excludes tin smelting industry, off-estate smoke houses and copra kilns; includes other off-estate processing in other manufacturinR; all manufacturing establishments were not covered in 1959. /c Excludes slaughtering and tin smelting industries, and also workshops belonging to the Government utilities and depertments. Jd Defined by the mission as the sum of paid full-time employees plus 50% of paid part-time employees. However, the measurement of part-time employees might have somewhat changed over time: less than 6 hours a day or less than 20 days a meonth in 1968 and 1973; earlier censusea did not have any formal definition. Furthermore, unpaid family workers are included as part-time workers in 1968 because the data were taken from the summary tables. Le Primary iron and steel milling. and nonferrous metals; rolling, casting and extruding included in nonferrous aetals. Sources: Peninsular Malaysia, Census of ManufacturinR Industries. 1959. 1963, 1968 and 1973 (Department of Statistics, Malaysia). Anne" Table 2.4: PENINSULAR MALAYSIA: NUMBER OF ESTABLISHMENTS AND VALUE ADDED STRUCTURES, AND VALUE ADDED AND SALARIES AND WAGES PER EMPLOYEE IN MANUFACTURING SECTOR BY HAJOR INDUSTRIAL GROUPS, 1959, 1963. 1968 AND 1973 /a Annual growth rates HIC Structure (t of total man.facturinR) Per paid foil-tine equivalent employee /d (M5) (A)a 1963-1973 (1972) Number of establish-ents Value added Value added Salariea and -ages Val.. Salaries Codes Major indostrial groups 1959/b 1963]g 196811 1973 1959/b 1963L/c 1968/c 1973 1959/b 1963/c 1968/c 1973 1959/b 1963Lc 1968/c 1973 added and wages Per employee 311-312 Food products 40.4 35.0 32.8 27.6 21.9 16.9 17.4 15.7 5,462 4,777 7,498 10,060 1,390 1,672 1,973 1,982 7.7 1.7 313 Baveragem 1.7 1.1 0.8 0.7 3.4 3.1 4.1 2.6 5,318 5,879 15,680 20,520 1,786 1,982 3,185 3,626 13.3 6.2 314 Tobacco products 2.6 1.5 1.3 1.5 3.8 6.7 6.5 5.6 3,535 7,201 14,090 18,510 1,150 1,463 2,475 2,266 9.9 4.5 321 Testiles - 0.5 1.6 2.2 - 1.0 2.4 4.5 - 2,963 3,764 4,687 - 1,203 1,267 1,568 4.7 2.7 322 Wearing apparel, except footwear - 2.4 1.2 2.0 - 0.5 0.5 1.3 - 2,911 1,851 2,884 - 1,098 868 1,103 -0.1 0.1 323 Leather, leather substitutes 6 fur - 0.3 0.4 0.5 - 0.2 0.1 0.1 - 3,393 2,873 4,041 - 1,092 1,289 1,259 1.8 1.4 324 Footwear - 2.1 1.8 1.5 - 0.4 0.2 0.2 - 3,486 3,559 3,592 - 1,327 1,247 1,659 0.3 2.3 331 Wood 6 wood & cork products 10.7 10.4 9.7 9.1 11.2 11.8 10.8 13.1 3,849 4,084 4,831 7,607 1,578 2,022 2,110 2,270 6.4 1.2 332 Furniture & fixtures 4.4 7.7 7.0 7.8 1.2 1.9 1.0 0.8 2,945 3,280 3,683 3,956 1,273 1,389 1,556 1,961 1.9 3.5 341 Paper & paper products - 0.9 1.2 1.4 - 0.7 0.7 0.8 - 5,010 4,343 5,075 - 1,526 1,337 1,594 0.1 0.4 342 Printing & publishing 4.2 3.7 4.1 4.3 5.7 7.0 6.0 4.9 3,963 4,223 5,527 8,249 1,715 2,242 2,433 2,803 6.9 2.3 351 Industrial chemicals > 2.1 5 3.2 0.4 0.5 5 4.5 5 9.6 2.4 2.6 ; 6.916 >10,450 17,690 21,490 5 1,877 5 2,186 4,215 4,293 4.0/f 0.4Lf 352 Other chemical products } 5 2.6 2.6 5 5 6.4 4.9 ) 5 13,320 17,231 ) 5 2.939 3,418 5.3/f 3.1/f 353-354 Petroleum refineries, misc. products of petroleum 6 coal - - 0.1 0.1 - - 4.7 2.2 - - 102,700 86,890 - - 11,370 10,980 -3.3/f -0.7/f 355 Rubber products 4.6 4.7 4.7 5.1 32.2 15.9 13.6 9.6 7,203 4,353 6,559 9,271 1,546 1,627 1,977 2,170 7.8 2.9 356 Plastic products, n.e.c. - 0.3 0.8 2.7 - 0.4 1.0 1.9 - 3,148 4,382 5,165 - 1,163 1,308 1,473 5.1 2.4 361 Pottery, china & earthenware 0.6 0.5 0.4 0.4 0.2 0.2 0.1 0.3 3,117 3,067 3,784 6,653 1,250 1,428 1,817 2,086 8.1 3.9 362 Glass 6 glass products 0.5 0.4 0.4 0.3 0.2 0.2 0.4 0.5 1,993 3,665 5,328 7.931 892 1,476 2,632 2,190 8.0 4.0 369 lonmetallic mineral products, n.e.c. 2.3 2.7 2.8 3.0 4.0 6.1 6.5 4.5 5,366 5,802 9,133 9.866 1.591 1,878 2,445 2,552 5.4 3.1 371 Iron 6 steel basic industries S 5 0.4 0.8Je 1.7 5 5 0.9 I.l/e 3.3 5 ) 4,944 9,218je 12,500 5 5 2,103 1,784/a 3,019 6.3/f 11.1/f 372 llonferrous metals 56.3 5 0.1/e 0.1 >3.2 5 1.4je 0.4 > 3,702 5 5.794/e 14,200 ) 1,451 5 2,975/e 3,688 19.61f 4.4/f 381 Fabricated metal products > 13.5 13.7 13.5 5 5.4 4.7 4.9 5 4,250 4,805 6,538 5 1,729 2,035 2,074 3.8 1.8 382 Hlachinery (except electrical 6 transport) 5 4.5 4.0 5.0 7.7 5 2.2 3.5 2.9 3.7 ) 2,917 3.527 4,188 6,754 5 1,534 2,211 2,034 2,219 6.7 0.0 383 Electrical machinery 5 2.1 3.5 1.0 ) 1.1 2.4 8.1 ) 7,428 9,697 7,442 ) 2,109 2,370 1,637 0.0 -2.3 384 Transport equipment 6.0 1.1 1.4 1.6 2.6 1.4 2.1 2.7 3,007 3,776 5,180 7,295 1,530 2,200 2,016 2,661 6.8 1.9 385 Professional, scienrllic, photogra- phic equipment, etc. - - 0.04 0.2 - - 0.3 0.4 - - 8,047 5,894 - - 2,799 1,752 -6.0/f -8.9/f 390 Other manufacturing 9.1 1.5 1.6 1.1 3.8 5.2 0.3 0.3 3,076 17,653 4,806 4,551 1,378 3,432 1,671 1,375 -12.7 -8.7 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.949 4.990 6.961 8.506 1.505 1.826 2,127 2.146 5.5 1.6 See Annex Table 2.3 for footnotes /a through /e and sources. /f Relates to 1968-73. Peninsular Malaysia: Value Added in ianufacturing Sector by Major Industrial Groups: Levels, GrOWth Rates & Contribution, 1959. 1963 & 1973 /a Annual growth rate MIC Contribution to of value added per (1972) Major Industrial Groups Value added (K$ million) Annual growth rate (X) growth (%) employee (C) Codes 1959/b 1963/c 1968/c 1973 1959-63 1963-68 1968-73 1963-68 1968-73 1963-68 1968-73 311- 312 Food products 64.5 70.9 152.2 364.4 2-4 16.5 19.1 17.9 14.6 9.4 6.0 313 Beverages 10.1 13.1 36.3 61.2 6.6 23.0 11.1 5.1 1.7 21.7 5.5 314 Tobacco products 11.2 28.3 57.1 130.4 26.0 15.1 18.0 6.3 5.0 14.4 5.6 321 Textiles - 4.0 20.6 104.2 - 39.0 38.5 3.7 5.8 4.9 4.5 322 Wearing apparel, except footwear - 2.0 4.7 29.7 - 18.9 44.0 0.6 1.7 -9.5 9.3 323 Leather, leather substitutes & fur - 0.7 1.0 3.1 - 8.4 25.5 0.1 0.1 -3.4 7.1 324 Footwear - 1.6 1.6 5.8 - 0.8 29.0 0.01 0.3 0.4 0.2 331 Wood and wood & cork products 33.0 49.6 94.7 304.2 10.7 13.8 26.0 10.0 14.4 3.4 9.5 332 Furniture & fixturea 3.4 8.0 8.5 19.3 23.0 1.3 17.7 0.1 0.7 2.4 1.5 341 Paper & paper products - 3.1 6.2 18.0 - 15.2 24.0 0.7 0.8 -2.9 3.1 342 Printing & publishing 16.8 29.3 52.6 114.6 15.0 12.4 16.8 5.1 4.3 5.5 8.4 351 Industrial chemicals {13.1 40.5) 21.3 61.3 {32.0 13.7} 23.5 ( 8.0) 2.8 {19.2} 15.2 352 Other chemical products { } 55.4 113.8 { } 15.5 1 ) 4.0 ( } 3.4 353- Petroleum refineries, misc. - - 40.7 21.3 - - 5.0 - 0.8 - -3.4 354 product of petroleum & coal 355 Rubber products 94.8 66.7 118.9 222.5 -8.4 12.2 13.3 11.5 7.1 8.5 7.2 356 PlaStic products, n.e.c. - 1.9 8.4 44.5 - 35.5 40.0 1.4 2.5 6.8 3.3 361 Pottery, china & earthenware 0.6 0.9 1.1 6.3 9.1 5.6 40.5 0.06 0.4 4.3 11.9 362 GlaBsS & glass products 0.6 0.8 3.5 11.8 7.2 35.5 27.0 0.6 0.6 7.8 8.3 369 Other nonmetalic mineral products 11.6 25.8 57.1 104.2 22.5 16.0 12.7 6.9 3.2 9.5 1.6 371 Iron & steel basic industries { } { 3.6) 9.3/e 76.1 { } { } 51.0/e (3-9) 4.6/e (24.9) 6.3/e 372 Nonferrous metals {9.3) { } 11-9/e 9.7 (29.5) (42.5) -3.9e { } 0.1je 19.6e 381 Fabricated metal products ( } 22.7 40.8 114.4 { } 12.4 23.0 4.0 5.1 2.5 6.3 382 Hachinery (eSCept electrical & tranS) (6.5 14.7 25.2 87.2 (32.0) 11.3 28.5 2.3 4.3 3.5 10.0 383 Electrical machinery { 4.7 20.8 188.5 { } 34.5 55.0 3.5 11.5 5.5 5.5 384 Transport equipment 7.7 6.0 18.7 62.2 -6.0 25.5 27.5 2.8 3.0 6.5 7.1 385 Professional, scientific instruments, etc. - - 2.9 9.9 - - 28.0 - 0.5 - -6.3 390 Other manufacturing /b 11.3 21.7 2.4 7.7 17.7 -36.0 26.0 4.3 0.4 -30.0 -1.1 Total 294.4 420.3 873.9 2,326.9 9.3 15.8 21.6 100.0 100.0 6.9 4.1 * See Annex Table 2.3 for the footnotes and sources. II ANNEX TABLE 2.6: PENINSULAR MALAYSIA: PRINCIPAL STATISTICS FOR MANUFACTURING SECToR BY FiXED ASSETS SIZE, 1973 Fixed Assets Size in M$ '000 Under $10- $20- $50- $100- $200- $500- $1,000- $5,000 $10,000 $10 19 49 99 199 499 999 4,999 9,999 & Over ______ ______ ~Total I Distribution By Size Value 1. Total Number of Persons Engaged 10.90 5.08 7.28 5.81 6.43 10.36 10.97 28.58 7.71 6.87 297,934 2. Paid Full-Time Employees 6.64 3.97 6.40 5.75 6.74 11.22 12.10 31.13 8.52 7.55 268,162 3. Value of Fixed Assets 0.69 0.85 1.72 1.91 3.05 6.15 8.14 30.61 15.91 30.98 M$2,294 mil. 4. Value Added 3.73 2.00 3.44 3.57 5.52 8.98 10.54 31.42 12.79 18.01 " 2,326 " 5. Value of Gross Output 4.05 2.28 4.18 4.19 6.54 9.87 12.17 29.43 12.14 15.17 " 7,677 " 6. No. of Establishment 56.33 12.34 11.22 5.62 4.45 3.99 2.36 2.91 0.46 0.30 11,060 Value in M$ Average ---------- ---------- ---------- ---------u-------------- -- V ue 1. Value Added Per Person Engaged 2,672 3,070 3,688 4,803 6,705 6,774 7,501 8,588 12,958 20,471 7,810 2. Value Added Per Paid Full-Time Employee 4,875 4,372 4,663 5,393 7,108 6,951 7,558 8,761 13,022 20,708 8,677 3. Salaries and Wages Per Paid Full-Time Employee 1,669 1,580 1,721 2,053 2,104 2,098 2,081 2,064 2,898 3,568 2,189 4. Fixed Assets Per Person Engaged 486 1,289 1,819 2,534 3,656 4,570 5,712 8,248 15,899 34,731 7,702 5. Fixed Assets Per Paid Full-Time BPslovee 886 1,836 2,300 2,845 3,876 4,690 5,756 8,414 15,977 35,133 8,557 6. Surplus Per Paid Full-Time EMployee 1' 3,205 2,792 2,942 3,341 5,004 4,853 5,477 6,697 10,123 17,140 6,488 7. Surplus Per Person Engaged 1,757 1.960 2.327 2.975 4,720 4,730 5,436 6,564 10,074 16,94" 5,840 8. Ratio of Value Added to Gross Output -0.28 0.27 - 0.25 0.26 0.26 0.28 0.26 0.32 0.32 0.36 0.30 9. Ratio of Value Added to Fixed Asees 5.50 2.38 2.03 1.90 1.83 1.48 1.31 1.04 0.82 0.59 1.01 10. Ratio of Surplus to Fixed Assets 1, 3.62 1.52 1.28 1.17 1.29 1.03 0.95 0.80 0.63 0.49 0.76 1/ Surplus is defined as value added minus salaries and wages. Source: See Annex Table 2.5. -34- ANNEX Table 2.7 PENINSULAR MALAYSIA: PRINCIPAL STATISTICS FOR MANUFACTURING SECTOR BY PAID PULL-TIME EMPLOYMENT SIZE. 1973 ____-____________ ----_ Paid full-lime employment size ---------------------- Description 0 1-4 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500 and over ------------------------ 7 distribution by size ------t…--________________ 1. Number of establishments 28.46 29.57 12.22 9.76 5.10 5.33 4.55 2.60 1.72 0.69 2. Number of persons engaged 3.24 5.09 4.08 5.95 5.20 8.02 11-98 13.49 19.42 23.52 3. Number of paid full-time employees - 2.79 3.33 5.52 5.09 8.32 13.00 14.47 21.50 25.62 4. Value of fixed assets 0.48 1.33 1.42 2.55 2.78 6.74 12.36 16.92 31.06 24.35 5. Value added 0.62 1.76 2.29 3.64 3.76 6.64 14.01 16.41 24.73 26.13 6. Value of gross output 0.73 2.07 2.61 4.47 4.66 7.59 14.12 18.05 23.94 21.76 … ____________________ Value in MS, unless otherwise stated ------…----- …----- 1. Value added per person engaged 1.493 2.704 4,385 4,781 5,656 6,460 9,138 9,501 9,942 8,677 2. Value added per paid full-time employee - 5,481 5,976 5,722 6,424 6,923 9,355 9,842 9,978 8,725 3. Salaries and wages per paid full-time employee - 1,561 1,729 1.872 1,925 2,082 2,406 2,405 2,335 2,096 4. Fixed assets per person engaged 1,151 2,010 2.683 3.297 4,118 6,474 7,950 9.658 12,318 7,913 5. Fixed assets per paid full-time employee - 4,073 3,657 3,945 4.677 6,938 8,139 10.005 12,362 8,018 6. Fixed assets per establishment 3 14 32 71 142 320 716 2.181 6.888 21,541 7. Surplus per full-tine employee /a - 3,920 4,247 3,850 4.499 4,841 6,950 7,437 7,644 6,629 8. Surplus per person engaged /a 1,331 1,934 3,116 3,217 3,961 4,517 6.788 7,179 7,616 6,592 9. Ratio of value added to gross output 0.26 0.26 0.27 0.25 0.24 0.26 0.30 0.28 0.31 0.36 10. Ratio of value added to fixed assets 1.30 1.35 1.63 1.45 1.37 1.00 1.15 0.98 0.80 1.09 11. Ratio of surplus to fixed assets /a 1.16 0.96 1.16 0.98 0.96 0.70 0.85 0.74 0.62 0.83 Paid full-time employment size ------- Very Description Total small Small I Small II Medium Large value 0-4 5-19 20-49 50-199 200 snd over -------------- … distribution by slze ----------- 1. Number of establishments 11,060 58.03 21.98 10.43 7.15 2.41 2. Number of persona engaged 297,934 8.33 10.03 13.22 25.47 42.94 3. Number of paid full-time employees 268,162 2.79 8.85 13.41 27.47 47.12 4. Value of fixed assets 2,295 1.81 3.97 9.52 29.28 55.41 5. Value added 2,327 2.38 5.93 10.40 30.42 50.86 6. Value of gross output 7,678 2.80 7.08 12.25 32.17 45.70 Average value ---Value in M$, unless othervise stated --------- 1. Value added per person engaged 7,810 2,203 4,620 6,144 9.330 9,249 2. Value added per paid full-time employee 8,677 7,409 5,818 6,734 9,612 9,293 3. Salaries snd wages per paid full-time employee 2,189 1,771 1,819 2,023 2,405 2,204 4. Fixed assets per person engaged 7,702 1,675 3,047 5,548 8,855 9.938 5. Fixed assets per paid full-time employee 8,557 5,559 3.837 6,080 9,122 9,985 6. Fixed assets per establishment 207 5 45 226 1,525 12,510 7. Surplus per full-time employee /a 6,488 - 3,999 4,711 7,206 7,088 B. Surplus per person engaged la 5,840 1,699 3,176 4,298 6,995 7,055 9. Ratio of value added to gross output 0.30 0.26 0.25 0.26 0.29 0.34 10. Ratio of value added to fixed assets 1.01 1.33 1.52 1.11 1.05 0.93 11. Ratio of surplus to ftxed assets la 0.76 1.01 1.04 0.77 0.79 0.71 /a Surplus is defined as value added minus salaries and wsges. Source: Peninsular Malayias, Census of Manufacturing Industries 1973. Volume I (Department of Statistics, Malaysia). Peninsular Malaysia: Changes Manufacturina Sector by Paid Full-time Employment Size between 1968 and 1973 -------- 1 9 6 8 ------------------------- --------------- Changes between 1968 and 1973 -------------- 0-4 5-19 20-49 50-199 200 a over Total 0-4 5-19 20-49 50-199 200 & over Total No. of establishments 6,085 1,695 728 408 97 9,013 333 736 426 383 169 2,047 No. of paid full- time employees 6,067 16,375 22,183 37,145 39,037 120,807 1,419 7,352 13,756 36,515 88,313 147,355 No. of paid employees /a 8,198 17,778 22,898 37,496 39,162 125,532 1,590 6,980 13,918 37,050 88,479 148,017 Salaries & wages (MS '000) 10,841 27,766 42,976 90,985 94,389 266,957 2,413 15,382 29,723 86,196 186,324 320,038 Value added (MS '000) 41,343 71,685 110,636 308,140 342,047 873,851 14,124 66,351 131,371 399,855 841,377 1,453,078 "Surplus" (MS '000) 30,502 43,919 67,660 217.155 247,658 606,894 11,711 50,969 101,648 313,659 655,053 1,133,040 Gross output (M$ '000) 148,377 309,220 440,757 1,148,218 1,121,576 3,168,148 65,928 234,636 499,936 1,321,624 2,387,415 4,509,539 u Value added per employee ta 5,043 4,032 4,832 8,218 8,734 6,961 624 1,543 1,741 1,279 537 1,549 Salaries & wages per employee /a 1,322 1,562 1,877 2,427 2,410 2,127 32 181 97 -50 -211 19 Surplus per employees /a 3,721 2,470 2,955 5,791 6,324 4,834 592 1,362 1,644 1,329 748 1,526 No. of employees per establishment 1.35 10.49 31.45 91.90 403.73 13.93 0.18 -0.31 0.45 0.34 76.12 10.80 Value added per establishment 6,794 42,292 151,973 755,245 3,526,258 96,955 1,848 14,490 57,738 139,818 922,704 113,436 Surplus as Z of value added 73.8 61.3 61.2 70.5 72.4 69.5 2.3 7.4 8.8 4.5 3.9 5.3 Sources: Peninsular Malaysia, Census of Manufacturing Industries. 1968 and 1973 (Department of Statistics, Malaysia). Peninsular Malaysia: EoploYment and Sales Value of Selected Own Manufactured Products. 1973-79 and Census 1973 Output (Value in million M$ at current prices) Annual Comparision with 1973 census lGIC growth - Output No. of paid (1972) 14anufactured Products ' Jan-Jun (2) No. of estab. Census sales employees Codes 1973 1974 1975 1976 1977 1978' 1979 1973-78 Survey Census output ( I) 1973 1978 31 Food, Beverages 6 Tabacco Producta 1,629.9 2,096.6 2,383.0 2.758.1 3.101.2 3,110.3 1,682.4 13.8 358 3,293 2 ,237. 144.6 23.904 31,336 31129 Dairy products (except ice cream) 175.4 212.9 263.0 272.8 306.1 343.0 187.7 14.4 4 4 172.5 98.3 844 1,292 31131 Canned pineapple 40.5 56.1 51.2 59.6 63.4 61.2 25.2 8.2 4 5 49.5 122.3 2,749 2,368 31151 Coconut oil 183.4 234.5 165.1 172.7 197.7 184.2 120.7 0.1 83 86 188.3 102.7 1,257 31159/a Vegetable & animal - oil & fats } 236.9 336.8 500.6 228.5 340.1- 238.9 141.1 - - 25 30.3 - - 1,281 31180 Refined sugar ) 423.2 424.8 416.3 205.2 11.9 8 6 235.9 99.6 2,637 2,478 31162 Rice (large mills) 218.7 271.2 269.7 314.5 305.0 257.2 137.2 3.3 93 142 246.0 112.5 2,302 2,498 31164 Sago, tapioca, prawn crackers, etc. 20.3 20.3 26.2 35.1 35.7 32.5 18.6 9.9 33 70 26.4 130.1 722 872 31163/9 Breakfast foods, flour & other grain mills 119.8 174.4 188.7 197.0 195.3 205.5 107.5 11.4 7 65 124.0 103.5 682 1,009 31171 Biscuits 38.3 52.8 48.7 55.9 64.9 68.9 36.2 12.5 13 167 57.5 150.0 2,499 3,242 31190 Cocoa, chocolate & confectionery 40.1 46.2 48.5 59.2 100.5 123.9 61.1 25.3 27 56 41.3 102.8 1,551 2,461 31216/9 Food products (misc.) A 37.1 47.4 48.2 56.1 60.4 69.5 39.8 13.4 16 137 32.4 87.3 1,084 1,290 31220 Animal feed (prepared) 90.1 109.0 143.2 185.2 218.2 231.4 113.0 20.8 12 68 143.0 158.7 1.065 1,775 31330 Malt liquors and malt 62.2 82.2 84.8 102.4 125.5 143.8 83.7 18.2 3 3 59.4 95.6 741 1,369 31340 Soft drinka 6 carbonated beverages 44.4 58.8 65.6 79.8 101.7 121.3 76.4 22.3 22 64 57.8 130.1 2,208 3,048 31400 Tobacco products 322.6 394.2 452.5 516.2 561.7 612.7 329.2 13.7 33 168 343.6 106.5 3,259 3,804 32 Textiles, Wearing Apparel & Leather 365.4 406.1 517.4 828.1 985.5 1.194.5 657.2 26.7 252 625 415.4 113.7 29.034 53,095 32100 Textiles 244.0 279.2 370.7 637.3 783.1 956.9 528.1 31.4 94 240 291.9 119.6 18,540 35,554 32201 Wearing apparels (ready made) 105.6 107.0 121.1 164.4 172.6 207.3 113.4 14.4 98 165 103.3 97.9 9,051 15,587 32400/b Footwear 15.9 19.8 25.6 26.4 29.8 30.3 15.8 13.8 60 169 18.6 117.1 1,443 1,954 33 Wood & Wood Products (Incl. Furniture) 204.8 192.1 178.1 296.7 322.6 367.8 238.4 12.4 76 1.004 824.9 402.7 14.969 17,886 33112 Plywood, hard board & particle board 185.1 160.8 139.3 243.5 245.7 -289.6 185.5 9.4 33 34 186.7 100.9 13.306 13,997 33113 Planning window & door mills, etc. 19.8 31.3 38.8 53.3 76.9 78.2 52.8 31.6 43 115 39.6 200.0 1,663 3,889 05 § . A Annual Comparison with 1973 census mIC growth Output No. of paid (1972) Hanufactured Products Jan-Jun (Z) No. of estab. Census sales employees Codes 1973 1974 1975 1976 1977 1978 1979 1973-78 Survey Census output (x) 1973 1978 34 Paper & Paper Products: Printing & Publishing 220.3 291.6 283.4 309.5 350.7 427.5 243.4 14.2 135 627 300.8 136.5 11.647 16.057 34110 Pulp, paper and paper board 4.8 5.2 6.1 9.5 12.3 15.6 9.8 26.6 3 4 6.3 31.4 221 641 34120 Paper, or paperboard containers/boxes 35.7 53.6 45.2 60.2 62.8 71.6 44.8 14.9 9 65 34.9 97.8 1,249 1,993 34200 Printing, publishing, etc. 179.9 232.7 232.1 239.8 275.5 340.2 188.8 13.6 123 475 238.0 132.3 10,177 13,423 35 Chemical. Petroleum. Coal, Rubber & Plastic Products 1,724.9 2.450.1 2,420.1 3.130.2 3.535.8 3.823.1 2,250.6 17.2 337 1.207 1.944.8 112.7 35.819 49.426 35110 Basic industrial chemicals 54.4 64.1 76.6 78.7 82.2 91.5 52.6 11.0 23 24 51.6 94.9 1,437 1,508 35120 Chemical fertilizers and pesticides 79.9 123.9 136.3 159.5 175.2 190.8 110.7 19.0 10 24 117.4 146.9 816 1,469 35210 Paints, varnishes & lacquer 47.1 61.9 66.9 78.7 90.5 104.5 61.1 17.3 14 16 48.1 102.0 719 1,218 35220 Medical & pharmaceutical preparation 13.9 21.1 18.3 20.5 26.6 39.8 20.8 23.4 13 70 22.9 165.3 1,003 1,757 35231 Soaps, washing & clearing compounds 64.7 86.5 80.7 88.0 102.4 113.5 72.0 11.9 7 29 85.5 132.1 944 1,404 35239 Perfumes, cosmetics & toilet preparations 37.6 52.9 46.1 56.2 58.9 74.1 40.7 14.5 10 39 36.5 97.0 791 1,039 35290 Chemical products, nec. 49.3 58.7 73.6 42.6 60.9 81.7 47.3 10.6 54 129 48.8 99.1 1,539 3,073 35300 Petroleum (refined) products 228.5 629.2 773.3 1,000.2 1,122.3 1,182.5 683.6 38.9 4 4 232.6 101.8 488 566 35591 Remilled & latex processed rubber 849.8 1,050.7 797.4 1,177.5 1,305.4 1,306.3 795.6 9.0 94 98 866.9 102.0 12,313 12,346 35510/ Tire, tube, footwear and 93/99 other rubber products 212.3 236.4 250.9 295.6 359.0 425.7 231.0 14.9 54 249 195.8 92.3 9,575 16,459 35600 Plastic products nec. 87.4 114.9 100.0 132.8 152.4 212.5 135.2 19.4 54 299 132.7 151.8 6,194 8,587 36 Nonmetallic Mineral Products Except Petroleum & Coal Prod. 155.2 200.8 236.0 270.7 300.3 384.8 200.9 20.0 23 415 244.6 157.6 3.282 5.483 36921 Cement 96.8 121.7 149.4 179.9 189.1 229.1 114.0 18.8 4 4 86.3 89.2 1,277 2,144 36991 Cement and Concrete products 58.4 79.1 86.6 90.8 111.2 155.7 86.8 21.7 19 111 70.7 121.0 2,005 3,339 37 Basic Metal Products 89.0 147.0 139.1 152.4 172.1 247.8 137.9 23.0 39 192 247.0 277.5 2.664 4.015 37102 Iron foundries 13.7 16.8 18.5 16.6 25.9 46.6 26.7 27.7 29 125 29.9 218.0 1,624 2,657 37109 Iron & steel basic shapes 75.3 130.2 120.6 135.8 146.2 201.2 111.2 21.7 10 52 99.0 131.5 1,040 1,358 381 Fabricated Metal Product (Except Machinery & Equip.) 261.2 316.3 277.1 336.8 402.8 520.4 321.7 14.8 130 1.489 364.9 139.7 10.499 14.782 38130 Structural metal products 75.0 91.8 82.9 88.8 98.0 127.2 77.2 11.1 47 310 119.6 159.3 3,178 4,559 38191 Tin cans & metal boxes 53.7 68.1 68.3 81.8 98.9 114.4 74.6 16.3 27 42 75.0 139.7 2,397 3,445 38192 Wire & wire products 73.1 80.7 71.7 88.1 96.0 129.7 80.9 12.2 26 53 76.1 104.1 1,965 2,579 N HO 38193 Brass, copper, pewter & X C. alumni products 20.7 29.3 25.7 33.4 39.6 59.1 33.8 23.4 , 15 114 31.4 151.8 1,679 2,814 X X x 38199 Other fabricated metal , products 38.7 46.4 28.4 44.6 70.3 90.0 55.2 18.4 15 66 15.4 39.9 1,280 1,961 o Annual Comparison with 1973 census MIC growth Output No. of paid (1972) Jan-Jun (1) No. of estab. Census sales employees Code Hanufactured Products 1973 1974 1975 1976 1977 1978 1979 1973-78 Survey Census output (x) 1973 1978 383 Elect. Hachinery. Apparatus. Appliances & Supplies 299.1 614.7 713.9 1,106.3 1,421.5 1,968.7 1,203.5 45.8 83 109 411.4 137.6 22.562 60.957 38310 Elec. industrial machinery & apparatus 19.8 6.3 4.7 21.8 28.3 40.8 25.4 15.6 4 24 20.4 103.1 2,504 1,356 38320 Radio, television & communi- cation equipment and 108.8 101.8 132.4 938.1 1,226.6 1,721.4 1,036.6 { 24 42 291.9 268.3 12,123 54,615 apparatus { 38330 Electrical appliances and housewares 31.7 7.8 6.1 5.8 7.6 9.4- 4.5 (49.2 13 6 4.1 13.0 1,358 480 38391/ Electrical apparatus & 3/9 supplies, nec. 112.8 462.2 535.1 91.5 103.6 132.0 97.6 ( 36 29 68.6 60.8 5,863 3,317 38392 Dry cells 6 storage batceries 26.0 36.7 35.6 49.0 55.5 65.2 39.4 20.2 6 8 26.5 101.9 714 1,189 384 Transport Equipment 147.5 209.2 173.0 220.0 246.3 302.1 172.1 15.4 56 173 234.0 158.7 6.916 10.141 38431 Hotor vehicle bodies (only) 6.4 10.1 11.6 13.9 13.2 19.9 12.4 25.5 15 70 14.4 225.6 447 884 38432 Motor vehicle (manufactured/ assembled) 122.5 174.7 138.3 150.5 156.6 186.7 117.4 8.8 8 8 154.9 126.4 5,199 5,835 38439 Motor vehicle parts & accessories 3.6 7.6 10.2 15.8 22.2 39.2 20.6 61.2 17 14 3.8 105.5 555 1,864 38441 Motorcycles & scooters (manufactured/assembled) Ic /c 25.3 37.6 34.8 8.8 - - 5 29.3 - - 548 38449 Bicycles, tricycles, trishaws parts & accessories 15.0 16.8 12.8 14.5 16.7 21.3 12.9 7.3 16 23 18.6 124.4 715 1,010 Not Elsewhere Classified Industries 384.6 680.7 672.8 860.2 1,157.0 1,201.7 780.5 25.6 120 /d /d - 19.592 28.918 /2 - Other covered industries 141.1/c 186.8/c 139.Oc 274.2 389.7 460.1 276.0 28.5 24 - - - 4,243 11,890 /3 Pioneer establishments, nec. 243.6 493.9 533.8 586.0 767.3 741.6 504.5 24.9 96 - - - 15,349 17,028 Total Sales 5,425.1 _.7743.3 7,994.1 10,269.1 11,995.8 13,549.1 _7888.6 20.1 1.609 1.060 7,677.7 1.41.5 181,158 290.750 la Except coconut and palm oil. /b Except vulcanized, moulded rubber or plastic. /c 38441, 37101, 37209 are placed under other covered industries. Id Relates to 382 machinery except electricals, 385 precision instruments and 39 other manufacturing industries. /I Do not include ice, coffee, tea, spices, curry powder, meehoon, noodles and related products. /2 Consists of 31140 (canned, preserved, and processed fish, crustaces and similiar food, 33200 (furniture and fixtures, nonmetallic), 37101 (primary iron and steel products). 37209 (Primary nonferrous metal products except tin), 38250 (office, computing and accounting machinery), and 38291 (refrigerating, exhaust, ventilating and air conditioning machinery). m z a0 C,' 0 /3 "Pioneer establishment" not falling within the covered industries. Sources: Peninsular lMalaysia: Mionthly Industrial Statistics (July 1979 and earlier issues), Census of Manufacturing Industries, 1973 Vol I. p (Department of Statistics, Malaysia) - ANNEX -TABSL 2.10: PElNfSUIAR MAIAIYSIA: IN(MO OF M42NU1ACTURING PRODUCTION BY MAJOR INIIUSTRIAL GROUPS AND SELECTED FRODUCTS 1968-1979. WITh 1968 AND 1973 CENSUS WEIGHTS 1968 = 100 MIC (1972) MAJOR INWSTRIAL GROUP/ 1968 1973 WEIGRTS Nems SELECTED PRUMCTS WEIGHTS 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979Q 1979Q2 I__ _ _ _ _ _ _ _ __ SanIHI oi t Actual 311/12 Food 20.4 108.7 115.9 111.9 115.4 130.3 128.5 136.2 156.5 162.0 171.7 180.2 172.3 11.28 115.661 31129- Dairy Prod. (except Ice tream) 4.0 105.2 119.3 109.3 116.2 145.9 140.9 159.9 173.6 186.6 198.6 211.3 228.1 0.97 31131 Caed Pineapple 2.2 107.3 105.9 101.5 90.9 84.3 85.8 68.7 73.9 75.3 79.4 86.9 85.7 0.44 31151 Coconut Oil (crude, only off estate)- 1.2 91.6 101.8 107.9 103.7 505.7 72.7 80.6 79.3 68.8 53.3 46.5 59.4 0.95 * # " (refined) 0.3 104.6 86.7 98.9 109.3 131.7 129.8 156.8 163.9 109.7 101.0 107.0 116.8 -- 31152 Paln Ol (only off esrate)2 2.7 130.4 195.7 274.8 377.6 470.6 620.1 705.9 846.1 1,886.5 1,286.3 1,350.0 1,357.0 3.48 31159 Edible Vegetable Oils & Fate 0.8 119.0 103.3 107.3 109.1 141.0 189.2 232.7 376.5 323.5 355.8 395.5 322.4 0.41 31162 Rice (only large mills) 1.0 108.9 133.3 145.6 143.3 146.0 127.9 137.0 134.2 135.3 109.9 118.6 113.9 1.35 31164 Sago & Tapioca 0.3 112.1 131.4 113.2 146.9 161.8 154.7 198.1 224.2 207.4 201.3 198.5 206.2 0.20 31163/9* Breakfast Food & Other Grain Prod. 2.4 98.9 113.0 113.5 123.2 130.2 121.6 112.7 134.1 145.3 151.8 152.0 142.1 1.01 31171 Blic-itn 1.5 114.6 119.6 121.9 119.1 138.0 129.8 105.3 123.9 141.6 149.7 147.3 157.5 0.52 31180 Slugar (refined) 2.9 112.0 110.5 107.0 114.4 134.7 125.9 136.6 137.5 145.6 157.6 173.1 137.6 1.24 31220 Animal Feeds (prepared) 1.3 116.8 126.7 113.6 114.6 116.8 130.6 166.1 204.5 215.8 241.2 234.4 220.3 0.71 313 Beverages 4.5 124.2 131.0 129.4 135.9 169.7 195.1 184.6 214.0 248.3 292.1 315.8 350.4 2.55 (2.63) 31330 Malt Liquors 6 Malc 2.4 120.6 132.9 139.3 136.3 190.7 227.5 206.5 242.4 260.4 301.5 334.8 349.1 1.50 31340 Soft Drinks 6 Carbonated Beverages 2.2 128.4 128.8 118.0 135.5 145.8 158.0 159.4 181.5 234.6 281.4 294.0 351.9 1.05 314 Tobacco Producee 7.2 115.0 119.9 123.5 130.6 154.5 167.5 166.9 174.1 188.2 191.4 195.9 219.6 5.61 (5.61) 321 Textiles 2.2 111.6 114.6 122.0 156.1 196.8 141.0 213.9 302.5 313.9 366.8 356.3 395.3 4.48 (4.48) 331 Wood 4. wood 6 Cork Prod. (es. furniture) 11.9 107,7 125.5 140.4 183.7 203.3 185.9 190.2 265.2 286.4 274.1 287.0 302.8 12.61 (13.08) 33111 Sae=ills 9.3 102.9 116.2 123.9 155.4 167.0 170.5 160.5 232.4 258.7 231.4 256.0 258.4 8.26 33112 - Plywood, Hard & Parcicle Board 2.3 126.1 164.8 208.5 299.4 346.2 241.1 295.6 409.6 406.8 .;9.2 405.9 46..0 3.70 33113 p1eni n ldt JI, N :r. d . Dotr .Hil. And Joinery Works 0.3 111,7 114.3 130.1 168.4 210.9 216.5 197.0 197.5 234.8 301.9 312.1 363.2 0.65 341 Paser l Papea Products 0.8 131.7 141.3 155.2 175.0 218.4 214.2 203.8 276.1 285.0 328.6 335.2 383.5 0.77 (0.77) 351/2 Industrlal CQenicals 6 Cha. Prod. 9.6 111.5 118.9 121.5 144.2 165.6 175.1 154.7 176.3 180.4 203.7 219.3 234.6 6.92 I7.53) 35110 Basic Industrial Chaicals 0.5 119.6 136.3 138.2 151.0 154.8 185.0 174.6 182.3 157.6 175.4 178.3 166.91 0.84 G.-e. (snapressed & liquified) 1.0 113.0 142.0 139.7 175.2 197.0 201.8 186.9 206.0 194.0 224.4 317.9 325.7| 35120* rertlllier.a 6 Pestcildes 1.3 125.9 131.8 128.8 156.2 167.0 171.3 126.1 142.9 152.7 171.1 176.4 170.0 1.57 35210 Pints., Varnishes & Laquere 1.3 105.7 116.1 128.7 149.4 183.0 176.2 181.5 207.3 237.9 281.8 285.9 317.4 0.74 35231 ' Soaps & Cleaning Preparations 2.7 106.0 101.9 102.3 124.6 134.3 127.1 104.5 126.3 143.9 147.2 148.9 177.3 2.15 35239 Parfzaxes, Cosmetis., and Other Trollet Preparations 1.3 112.8 134.1 144.1 163.2 186.5 221.4 161.6 208.3 197.8 262.7 275.2 292.7 0.83 35290 matches 0.3 116.5 122.8 123.2 127.1 136.6 150.2 150.9 158.6 175.9 179.9 180.9 189.5 0.79 Cbeiacl Praduets (misc.) 0.7 105.1 100.5 93.4 122.4 203.2 268.8 293.9 291.4 263.8 261.4 297.1 300.3 (eomnt/) Annex Table 2.10 (-ontnnu-d 196S 1973 WEIflhlfS h'EIGIhS 1969 1970 1971 1972 1973 1974 , 1975 1976 1977 1978 197907 1979Q2 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~OpIrlIit Actual 353/4 pelroleum & Coal Products 5.0 109.1 99.5 92.0 96.6 99.1 101.5 117.9 150.3 169.1 186.9 183.5 198.6 2.23 (2.23) 355 Rnbbr Prod.cto 14.8 109.1 125.3 131.9 139.8 166.5 161.7 164.1 185.4 196.0 193.1 165.4 198.5 4.14 (9.56) 35591 Rnbber Rertiled 6 Latex Proces.. d 2 6.4 107.2 112.4 106.6 103.0 97.8 94.3 M2.9 83.0 82.9 81.9 73.7 70.3 5.42 369 $ N-onct-lllc Mineral Prod. 7.6 111.9 118.2 119.3 129.2 147.0 154.6 161.3 189.5 196.0 245.6 231.1 261.2 3.30 (4.48) 36921 Cemeot (hydraulic) 5.9 105.7 111.4 116.2 124.9 137.8 149.7 156.6 [90.1 194.6 239.2 219.0 250.7 1.90 36991 Cement & Concrete Prod. 1.7 132.5 140.9 122.9 146.6 177.9 174.5 177.1 I85.2 201.0 267.2 272.1 296.5 1.40 37 BasIc Moral Prod. 2.7 143.9 139.3 166.5 192.2 225.5 237.5 227.5 242.2 284.3 317.5 305.9 317.9 3.12 (3.69 37101 Iron & Steel PrianrY Frod. 1.3 149.4 123.6 165.3 235.7 255.8 248.3 247.5 250.1 301.6 365.0 365.1 336.8 1.70 37109 Other Iron & Steel bMoi shapes 1.0 140.5 163.2 150.9 151.7 199.1 229.5 219.7 239.8 277.1 286.5 252.6 310.6 1.00 37200 lIon-ferrou- Metal BasniT Pnd. 0,3 130.1 126.1 132.3 130.6 174.6 215.0 159.3 213.1 226.9 201.7 215.1 253.4 0.42 Pahricoted Metal Prod. (except 381 94chinerr & Egmlxtontl 4.2 106.7 131.4 141.3 171.7 242.6 267.5 186.0 207.9 233.0 291.5 267.5 318.9 4.92 :4.925 Elocoriral Maubixory, Apporctuco 383 Apiouroa & onlles 2.0 128.6 171.5 188.9 192.4 200.6 247.0 287.0 338.4 432.4 466.4 407.8 467.8 6.87 (8.10) 3832/3 RadIo, Tcle2iaion & Cn uxlcatio- EquiptaL, Appararus, & Elentrtial AppIance., & Hoosomar 0.8 148.4 233.9 244.3 313.6 347.3 419.8 538.4 573.4 741.3 793.5 637.4 741.1 4.52 38392* Dry Cello & Stora3o Baetorio 10.2 110.1 122.2 138.68 14.3 308,3 138.3 128.8 180.6 225.7 259.6 263.4 296.0 553 384 Tro.sPor. Enulmpent 2.3 210.2 272.5 281.9 268.3 393.0 531.4 412.1 416.6 481.4 572.6 537.8 633.2 2.05 (2.61) 38431 motor Vehicle Oodles 0.3 105.3 108.6 106.0 82.7 84.3 96.3 143.6 145.1 145.2 216.5 187.6 186.5 0.19 38432 Motor VmhillIs (aoeaxbled/maonf-ctcred) 1.8 227 8 305.2 316.0 301.0 454.5 623.4 474.4 485.4 562.3 666.4 633.5 749.9 1.56 38441 Motor Cycixo & Scoo trs (coot/nani.- 0.2 184.8 177.2 189.2 207.2 213.5 219.6 158.9 97.8 133.4 112.9 51.5 70.0 0.30 productiPV of Pi.xone FirtJ N.E.8. 45 147.2 193.9 239.4 313.6 474.5 906.0 915.3 1.179.4 1,311.9 1,438.4 1.563.0 1.610.2 -- P-roccint of ELoate Typo Aprirulture prmdu-tco- In Factory Off Estate 12.3 110.9 130.1 144.5 164.8 182.2 210.4 235.5 254.1 307.4 349.7 355.8 358.2 Totol 9lontnaxtoriln 100.0 115.6 129.9 137.0 156.1 1A7.1 215.8 216.0 256.9 264.2 311.9 317.6 337.4 76.27 (65.41) (4) Product/s transa.reod fret anrther xajcr ixdn-try. (1) i -ccurs rubber -uaocf-ctlcg9 activity e.ceptruhbber -ellitg aed lateo processing (355 minus 35591). E: Rxclude Poteery, china., artho -are, gloss end gla.o produces. 1/ Elcde a ztles the folloccg 11 (out of 28) xajne indoatrtal groups: -earing apparel. aacopt footwe-r (322); t he ad lethe prduts. 1the sbetuto ad fu (323): fo ear, accept vUicated or meIded ru-bbr or plootil footwear (324); furniture nd fimtures, except pririly of metal (332): prInting, pobIlhing *ed allied indu-srlxo (342); plootie peod-et e.e.c. (356), pottery., ehi end earthe--are (361); gloss and gls products (3623); achinery -xcept electrsi.L (382). profe.o.inal and solentific, mea-srn.g and controllins equipment (385); oth-r naccfactoelog idustrit (3890). W/ goighe included in the respectiv eb-tccsl. Note: Many codes, par-ti-lc-ly marked ()),may not bh precise becau-e the index number describes induseriro acc-rdiog to tho old Malaysian Ioduetrial Clessift-atiu (0rC), 1967. Scress: Mo-ehly ledusrt-l Statl-tics (-ariouscseues), a-d Coccue of Muufscturlnc Indusirlee. 1973, Vol 1, Peoni-ular Maloy.a (ep.etr-mnt of St.tisti-n, alaysia). -41- ANNEX TABLE 2.11: PENINSULAR MALAYSIA: VALUE ADDED AS PERCENT OF GROSS OUTPUT BY MAJOR INDSTRIAL GROUPS 1959, 1963, 1968, 1970, and 1972-1974 CENSUS ANNUAL SURVEY MIC (1972) I/1// Codes MAJOR INDUSTRIAL GROUPS 1959 1963 - 1968 - 1973 1970 1972 1974 311/12 Food Products 20.4 17.0 17.9 19.3 22.5 16.3 17.5 313 Beverages 54.1 51.1 56.8 50.3 53.7 48.8 43.8 314 Tobacco Products 22.8 16.9 26.1 38.0 30.9 30.7 30.3 321 Textiles -- 26.8 27.0 35.7 27.6 29.4 30.3 322 Wearing Apparel Except Footwear -- 27.7 24.4 28.3 27.2 12.9 26.3 323 Leather, Fur & Leather Substitutes -- 24.6 18.8 26.4 28.6 17.5 25.9 324 Footwear __ 38.1 32.7 31.2 28.8 35.5 39.0 331 Wood, and Wood & Cork Products 38.7 37.0 37.8 36.9 35.6 34.6 34.2 332 Furniture & Fixtures 46.2 37.3 34.3 28.4 30.0 29.5 34.5 341 Paper & Paper Products -- 37.8 29.6 28.6 29.4 26.6 30.3 342 Printing & Publishing 57.5 51.4 50.2 48.1 50.7 50.4 47.3 351 Industrial Chemicals 44.2 r3.8 r3.5 33'3 J39.1 '38 6 27.0 352 Other Chemical Products I. 47.1 - 39.7 353 Petroleum (Refined) -- _23.24 21.3 24.3 22.6 7.6 354 Petroleum & Misc. Coal Products -- -' l 48.5 2 L 39.1 355 Rubber & Rubber Products 16.1 13.6 21.2 19.4 42.8 46.9 26.3 356 Plastic Products N.E.S. -- 43.3 39.5 33.5 35.6 36.7 34.2 361 Pottery, China & Earthenware 63.2 64.2 46.0 57.4 62.7 61.8 59.9 362 Glass & Glass Products 30.1 33.2 51.3 44.3 43.5 48.0 35.1 369 Non-Metallic Mineral Products 52.0 51.3 52.3 50.3 55.4 55.1 45.5 371 Iron & Steel Basic Industries -- 26.6 37.2 33.7 31.4 32.0 32.0 372 Non-ferrous Metal Basic Industries -- -a -- 46.0 39.7 25.9 34.9 381 Fabricated Metal Products 34.6 36.4 35.7 31.4 31.9 31.1 30.9 382 Machinery Ex. Elect. Machinery f55.6 45.9 39.8 42.4 40.3 43.5 38.9 383 Electrical Machinery, etc. 37.9 36.2 45.8 36.3 40.7 37.4 384 Transport Equipment 48.5 43.6 22.8 26.6 28.3 28.3 25.6 385 Professional, Scientific, Measur- ing & Controlling Equip, Photographic Equipment -- -- 41.3 43.0 40.3 38.9 40.9 390 Other Manufacturing, 2/ 20.1 40.2 39.0 32.0 36.2 37.5 31.9 Total 33.6 31.5 28.4 30.3 30.1 29.8 27.3 1/ Value Added as percent of Gross Value of Sales of Own Manufactured Products. 2/ Other manufacturing (390) includes "all other off estate processing industries" for 1959 and 1963. Sources: Census of Manufacturing Industries. West Malayaia 1959. 1963. 1968. 1973; and Survey of Manufacturing Industries, Peninsular Malaysia, 1970. 1972. 1974 (Department of Statistics, Malaysia). ANNEX TABLE 2.12: PENINSULAR MAIAYSIA: VALUE ADDED & GROSS OUTPUT OF SELECTED INDUSTRIES 1963. 1968 AND 1973 Value Added Gross Output Value Added/ Growth Rates (Mill. M$) (Mill. N$) Gross Output (%) 197311968 (%) V MIC (1972) Codes Industries 1963 1968 1973 1963 1968 1973 1963 1968 1973 Value Added Gross Output 31131 Pineapple Canning -- 13.01 10.32 -- 49.74 49.53 -- 26.2 20.8 -4.5 -0.1 31151 Coconut Oil (Crude. only off estate) 4.75 8.63 r73.28 l13.98 18 3 6.3 7.6 31151 II (Refined) 1.51 2.11 {22.14 20.18 30.57 18.35 7.5 69 L11.8 15.6 (13.5) 5.4 (7.0) 31159 Edible Veg. Oils & Fats -- 0.65 9.73 -- 3.04 30.27 -- 21.4 32.1 72.0 58.0 31162 aice (only large aills) 8.55 5.42 31.47 110.65 139.43 245.97 7.7 3.9 12.8 42.2 (13.9) 12.0 (8.3) 31163/9 Breakfast Food. & Other Grain Prod. 0.40 13.42 23.57 2.51 77.84 123.96 15.9 17.2 32.1 11.9 (51.0) 9.7 (48.0) 31330 Malt Liquors & Malt -- 16.58 35.03 -- 31.36 59.41 -- 59.2 59.0 13.5 13.6 31340 Soft Drinks & Carbonated Beverages 12.50 16.24 24.43 24.31 29.83 57.81 51.4 54.4 42.3 6.5 (6.9) 14.2 (9.0) 32100 Textiles 4.04 20.58 104.22 15.07 72.42 291.88 26.8 27.0 35.7 38.3 (38.5) 32.1 (34.5) 33111/2 Sawmills, Plywood, Hard and Particle Board Mills 42.99 86.01 278.31 117.17 225.65 748.28 36.7 38.1 37.2 26.5 (20.5) 27,1 <20.4) 33113 Planning, Window & Door Mills., Joinery 2.76 3.25 15.11 6.65 7.86 39.57 41.5 41.3 38.2 36.0 (18.5) 38.2 (19.5) 34110 pulp, Paper & Psper Board -- 0.89 1.43 -- 2.71 6.29 -- 32.8 22.7 10.0 18.3 35120 Fertilisers & Pesticides -- 10.61 36.62 -- 40.72 117.40 -- 26.1 31.2 28.0 23.5 15210 Paint, Varnishes & Lacquers 4.65 10.22 17.28 12.60 23.96 48.07 36.9 42.7 35.9 11.1 (14.0) 14.9 (14.3) 35600 Plastic Products N.E.C. 1.65 8.37 44.49 4.28 21.18 132.71 43.2 39.5 33.5 39.7 (37.5) 44.3 (41.0) 36921 Cement (hydraulic) -- 35.48 44.22 -- 60.73 86.34 -- 58.4 51.2 4.6 7.3 371D2 Iron Foundries 0.79 1.82 13.55 1.74 4.18 29.90 45.4 43.5 45.3 49.4 (32.9) 48.2 (32.9) 38191 Tin Cans & Metal Boxes 3.84 8.42 21.19 12.60 25.61 75.00 30.5 32.9 28.3 20.3 (18.6) 24.0 (19.5) 38432 Manofacture & Assembly of Motor Veh. -- 12.4B 36.24 -- 66.59 154.91 -- 18.7 23.4 23.8 18.4 38439 Motor Veh. Parts & Accessories 0.23 0.55 1.60 0.50 1.02 3.81 46.0 53.9 42.0 23.8 (21.4) 30.2 (22.5) 38441/9 Manufacture 6 Aasembly of Motorcycles, Scooters & other Transport, N.E.C. 0.59 1.26 7.08 1.75 4.26 30.04 33.5 29.6 23.6 41.2 (28.2) 47.8 (32.9) 31129 Dairy Products (Except Ice Cream) 23.42 22.50 89.82 172.50 26.1 13.0 -0.8 13.9 31171 Biscuits 8.28 12.30 33.75 57.47 24.5 21.4 8.2 11.2 31220 Animal Feed (Prepared) 8.18 16.60 67.92 143.01 12.0 11.6 15.2 16.1 31400 Tobacco Products 57.11 130.42 222.17 343.60 25.7 38.0 18.0 9.1 34100 Paper & Paper Products 6.22 17.97 20.80 62.79 29.9 28.5 23.6 24.7 34200 Printing & PNblishing, etc 52 56 114.55 108.82 237.96 48.3 48.1 16.9 16.9 35231 Soap & Cleaning Preparatiosa 20.03 50.02 43.47 85.47 46.1 58.5 20.1 14.5 35239 Perfumes, Cosmetics & Other Toilet Prep. 10.63 19.28 13.07 36.50 81.3 52.8 12.6 22.8 353/4 Petroleum & Coal Products 40.68 51.88 173.79 237.20 23.4 21.9 5.0 6.2 36991 Cenent & Concrete Products 10.54 32.68 29.62 70.67 35.6 46.2 25.4 19.0 38100 Fabricated Metal Products (E.c. Mach & Equip.) 38.99 114.42 113.28 364,86 34.4 31.4 24.0 26.4 38300 Electrical Machinery, etc. 20 78 188.53 60.46 411.44 34.4 45.8 23.8 16.9 Total Manufacturing 873.85 2,326.93 3.168.15 7,677.69 27.6 30.3 21.6 19.4 1/ Figures in brackets relate to 1963 - 1973. Sources: Census of Kanufacturing Indurtries. Peninsular Malaysia. 1963, 1968 and 1975 (Department of Statistics, Malaysia). Annex Table 3.1: MALAYSIA: MANUFACTURES AND OTHER MERCHANDISE EXPORTS AND IMPORTS BY SITC (Rev) SECTIONS: LEVELS, STRUCTURE AND GROWTH RATES, 1960, 1965, 1970 and 1975-79 SITC (Rev.) Levels in 11$ million at current prices Structure (Z) Annual growth rates (Z)/b Codes Commodity sections 1960 1965 1970 1975 1976 1977 1978 1979/a 1965 1970 1975 1979La 1965-70 1970-75 1975-79 MFP MSP MTP Merchandise Exports 0 Food & live animals 130 199 283 593 799 827 887 998 5.3 5.5 6.4 4.4 7.3 16.0 13.9 1 Beverages & tobacco 14 42 21 28 28 23 16 20 1.1 0.4 0.3 0.1 -14.5 5.8 -8.9 2 Crude materials, inedible 2,462 2,067 2,778 3,231 5,671 5,976 6,364 8,643 54.6 54.8 35.0 38.2 6.1 3.1 27.9 3 Mineral fuels 290 244 365 967 1,906 2,101 2,343 3,632 6.5 7.1 10.5 16.1 8.4 21.5 39.2 4 Animal/vegetable oils & fats 87 126 310 1,508 1,378 1,979 2,106 2,700 3.3 6.0 16.3 11.9 19.8 37.2 15.7 5 Chemicals 19 37 36 79 82 87 103 128 1.0 0.7 0.9 0.6 -0.5 17.1 12.6 6 Manufactured goods 547 931 1,183 1,624 2,133 2,324 2,821 3,193 24.6 22.9 17.6 14.1 4.9 6.5 18.4 7 Machinery & transport eqpt. 34 66 85 573 734 1,001 1,820 2,599 1.7 1.6 6.2 11.5 5.2 46.6 45.9 8 Misc. manufactured articles 18 27 43 529 604 545 496 558 0.7 0.9 5.7 2.5 10.1 64.9 1.3 9 Other exports 33 44 59 97 107 95 138 132 1.2 1.1 1.1 0.6 5.9 10.5 8.0 Total 3.633 3.783 5.162 9.231 13,443 14,959 17.094 22.603 100.0 100.0 100.0 100.0 6.4 12.3 25.1 5-8 Manufactured products -617 1,061 1,347 2,806 3,553 3,958 5,240 6.478 28.1 26.1 30.4 28.7 4.9 15.8 23.3 0-4 plus 9 Others 3,015 2,721 3,815 6,425 9,890 11,002 11,854 16,125 71.9 73.9 69.6 71.3 7.0 11.0 25.9 Merchandise Imports 0 Food & live animals 652 750 788 1,402 1,443 1,644 1,981 1,910 22.3 18.2 16.4 12.4 1.0 12.2 8.0 1 Beverages & tobacco 109 124 97 119 117 145 186 170 3.7 2.2 1.4 1.1 -5.0 4.3 9.3 1 2 Crude materials, inedible 379 238 322 558 533 638 722 813 7.1 7.5 6.5 5.3 6.3 11.6 9.9 > 3 Mineral fuels 416 389 519 1,021 1,311 1,422 1,470 1,832 11.6 12.0 12.0 12.0 6.0 14.5 15.7 8 4 Animal/vegetable oils & fats 15 18 24 26 21 26 26 31 0.5 0.6 0.3 0.2 5.7 1.6 4.5 5 Chemicals 165 234 315 709 923 1,079 1,228 1s675 7.0 7-3 8.3 10.9 6.1 17,7 24.0 6 Manufactured goods 424 598 773 1,389 1,620 1,788 2,264 2,594 17.8 17.9 16.3 16.9 4.2 12.4 16.9 7 Machinery & transport eqpt. 396 729 1,215 2,774 3,183 3,761 4,946 5,395 21.7 28.1 32.5 35.2 10.8 18.0 18.1 8 Misc. manufactured articles 150 206 204 465 494 581 724 748 6.1 4.7 5.5 4.9 -0.2 17.9 12.6 9 Other imports 80 72 67 67 77 81 142 143 2.2 1.5 0.8 0.9 -1.5 0.0 20.9 Total 2.786 3.356 4,323 8.531 9,722 11.165 13,690 15,311 100.0 100.0 100.0 100.0 5.2 14.6 15.7 5-8 Manufactured products 1,135 1,766 2,507 5,338 6,220 7,209 9,162 10,421 52.6 58.0 62.6 68.0 7.3 16.3 18.2 0-4 plus 9 Others 1,652 1,590 1,817 3,193 3.501 3,956 4,528 4,899 47.4 42.0 37.4 32.0 2.7 11.9 11.3 /a The annualized 1979 exports are estimated as January-September 1979 . January-December 1978. January-September 1978 /b MFP : Malaysian First Five-Year Plan MSP : Malaysian Second Five-Year Plan MTP : Malaysian Third Five-Year Plan Source: Quarterly Economic Bulletin. December 1979 (Bank Negara, Malaysia). KALAYSIA EXPORTS OF KANOWACTURED AND5 OTHER MAJOR PROJECTS: LEVELS, STRUCTURE ANS GROWTH RATES. 1960. 1965 ASS 1970-1979 … ~ ~ ~ ~ Levels~~~~~~~1-1 in 53 otlllo-s -- Major productst--------- Gross of Re-exports Nat-ofR---- …-t--- - --------- o fR-xot- -- Structure (lAn..ual orouth rates (Z) 1960 1965 1970 1971 l972p IflOp l979p I973p I974p l97Sp I976p 1977p 1960 1970 1979 1960-1970 1970-79 1973-77 I. Axric.1tar. 14 2,400.0 2,062.0 3,055.0 2,983.0 2,867.1 8.804.8 12.503.0 4,967.4 6.196.3 5.013.1 7.378.2 8.234.2 66.1 59.2 52.0 2.4 17.0 13.5 R.bbes 2,001.0 1,462.0 1,724.0 1,460.4 1,297.8 3,600.3 4,561.0 2,507.7 2,805.4 2,040.0 3,098.0 3,380.0 575.1 33._4 19.0 -1.5 1.4 -7.7 Tiober 194.0 360.0 852.0 039.7 872.0 1,510.0 4,216.0 1,546.1 1,570.4 1,127.2 2,335.0 2,400.4 5.3 16.5 17.6 16.0 [9.4 11.6 Palm oil 72.0 116.0 275.0 380.4 361.2 2,058.2 2,817.0 522.5 1,250.5 1,426.2 1,331.2 1,923.6 2.0 5.3 11.7 14.3 29.5 38.5 II. Minerals /a 808.0 1,134.0 1.339.0 1.346.2 1,197.8 4,416.8 6.574.0 1.220.4 2.216-7 2,133.3 3,377.7 3,5. 22.2 25.9 27.4 5.2 19.3 33.3 Tin 508.0 872.0 1,013.0 905.8 924.1 2,021.5 2,297.0 897.0 1,515.0 1,206.1 1,524.0 1,703.5 14_.0 1 9.6 94. 6 7.2 _9.5 T7_.4 Patroleo 147.0 87.0 202.0 389.9 222.5 2,263.0 4,127.0 269.5 664.5 969.2 1,746.6 2,017.4 4.0 3.9 17.2 3.2 39.8 65.4 III. Manufactures Lb 310.0 460.0 615.0 612.9 727.7 3,614.0 4,793.0 1,121.6 1,682.3 2,006.4 2,560.2 2,810.0 8.5 11.9 20.0 7.1 75.6 25.8 Food 46,0 70.0 92.0 85.0 10~1.5 270. 336.3 124.9 152.5 217.0 256.9 256.2 1.3 1.8 1.4 7.2 15.5 19.7 (Cussed piseapple) ... (0.7 (41.8) (64.0) (48.7) (43.45 (50.0) (50.7)) (61.4) (64.0)) - - (0.2) - - (10.2) (tina Iefedstuff) 6. . . 68) (11.8) (46.0) (67.4) (26.05 (24.5) (37.35 (30.0) 4.) - - (0.)-- (62 Severge. .od tobacc - - 20.4 22.4 29.5 20.0 27.9 14.5 15.0 10.3 11.6 13.2 - - 0.1 -- -2.4 Te.tilan, clothing and footarar. 14 . 32.0 56.7 89.0 465.0 577.3 112.0 156.6 208.7 304.2 323.7 - 0.4 2.4 - 37.9 30.4 (Cotton. textile 6 yarn fabarics) .. (7.6) (9.2) (17.3) (25.65 (195.0) (241.9) (35.2) (42.3) (46.8) (13.5) (64.7) - - (1.5) -- (16.5) (Clathsio) .. (2.1I) (16.3) (18.2) (30.3) (208.0) (263.8) (48.8) (64.8) (98.0) (141.0) (151.5) - - (1.1) - (32.7) (Pout,cer) . (7.1 (' 83) (14.7) (483.0) (55.4) (11.8) (19.3) (34.6) (36.7) (38.4) - - (0.25 - (34.3) Wood products . 7.0 90.0 117.1 166.0 355.0 468.2 268.3 244.7 196.8 329.1 311.0 - 1.7 1.9 - 20.0 3.8 (Ven..er) . .. (7.2) (13.5) (13.4) (38.0) (26.7) (22.8) (31.5) (16.7) (22.5) (30.1) - - (0.1) -- (7.2) (ply-.od) . .. (46.3) (58.3) (83.8) (1810.0) (281.4) (156.5) (103.1) (90.3) (185.6) (142.1) - - (1.2) -- (0.9) (ChsSpuod) .. 15.1) (15.3) (26.2) (360) (0.6) (3 1.81) (33.6)) (33.01) (38.8) (24.7)) - - (0.1)- - (-6.5) (IloaPde. .J mo igs) . .. (5 .7) (11.3) (21.1) (61.0) (810) (31.5) (38.4 (33.0 (49.9) (57.0) - - (0.3) - (15.9) Rubberp- ocs.1 20.9 17. 18.8 19.5 65.0 75.6 20.4 32.4 41.1 45.7 50.3 - 0.3 0.3- 180 2. Chenicals and cheulcal products 18.0 37.0 35.0 39.0 45.) 102.0 251.1 57.2 60.6 57.2 58.9 65.5 0.57 0.7 65572 10 6.9 2.8.5 07 6.9 3- Patroleo pr-da-t 143.0 157.0 161.0 113.1 96.4 100.0 5 112.2 165.6 105.4 140.4 107.6 3.9 3.1 1.2 5 1.0 oN-m,etallit mineral products .L.~ . .Lc 19.1 16.2 14.6 42.0 48.1 13.5 19.4 20.9 27.8 27.5 - - 2.0 - - 19.5 ro6steel ..L4 3.0 12.1 8.7 13.3 21.0 **s 5.6 11.3 11.1 12.1 16.0 - - - - - 30.0 Metatl manufatures ..14 -J-. 10.7 12.2 11.0 87.0 169.6 14.8 22.6 30.3 37.8 39.5 - - 0.7 - - 27.8 ElectialmChinery. oppliasces parta .L .14 . 15.0 . .1 ..14c 1,699.0 2,253.4 92.5 251.0 314.3 5 2 5.014 828.2Ld - 0.3 9.4 - 74.5 73.0 Otbec mahinery 6 trans.port equipmen t ..L4 --Le 90.1 86.0 94.2 130.0 272.0 71.9 298.2 032.7 41.114 . - - 1.1 - - 04.2 Other msoufact.r.n 103.0 196.0 173.0 37.7 47.5 258.0 313.5 141.8 73.3 107.0 486.6 447.6 2.8 3.4 1.3 5.3 6.8 33.3 Re-exports - - - - - - - 164.5 170.3 253.7 275.0 323.7 - - - - - 18.4 IV. Other 115.0 127.0 153.0 74.7 58.5 164.4 154.0 71.0 02.5 09.-6 101.3 154.1 3.2 3.0 0.6 2.9 - 21.4 V. Total Merchandise 3,633.0 3.783,0 5,142.0 5.016,8 4,851.1 17.000.0 24.024.0 7,380.4 10,117.8 9,252.4 13,417.4 15,050.0 100.0 100.0 100.0 3.4- 18.6 19.5 p: preliisisry, .. sot available, - Insignificant or Not applicable. La Includes unpecified agricultural comnditi.a or minerals. lb Only fo 1973-1977 specified manfactured exports are set of r-exports. 14 Details not avilable. Included in ochernsuctrm 1d Mi. ios's eati.ste. Sources: Annual1 ReD.rt and Statesent of Acc...sts (-arious issues) and Ou-terly Economic Bulletis. S.Pteob.r 1979, Bash Nagara, Malaysia. MALAYSIA IMPORTS BY END-USE: LEVELS. STRUCTURE & GROWTH RATES, 1961. 1964. 1969 AND 1974-1979 /a Levels (MS million) Structure (X) Annual growth rates (X) End use 1961 1964 1969 1974 1975 1976 1977 1978 1979 1961 1964 1969 1974 1977 1979 1964- 1969- 1974- 1969 1974 1979 Consumption Goods 1.315 1.484 1.139 2.160 1.720 2,225 2,490 3.089 3.435 46.7 46.3 31.6 21.6 21.8 20.1 -5.2 13.7 9.7 Food 594 723 461 ) 925 615 774 89I 1,124 1,115 21.1 22.6 12.8 ) 9.2 7.8 6.5 -8.6 ) 11.7 7.1 Beverages and tobacco 128 136 71 ) 85 172 160 183 189 4.5 4.2 2.0 ) 1.4 1.1 -12.1 Conasumer durables 169 227 133 295 260 299 409 549 795 6.0 7.1 3.7 2.9 3.6 4.7 -10.1 17.3 21.9 Other 424 398 474 940 760 980 1,030 1,233 1.336 15.1 12.4 13.1 9.4 9.0 7.8 3.6 14.7 7.3 Investment Goods 480 582 742 3.370 2,740 3,210 3,542 4.176 5.212 17.1 18.2 20.6 33.6 31.0 30.6 5.0 35.4 9.1 Machinery 127 182 290 1,170 950 852 998 1,317 1.691 4.5 5.7 8.0 11.7 8.7 9.9 9.8 32.2 7.6 Transport equipment 117 91 64 195 250 475 410 397 431 4.2 2.8 1.8 1.9 3.6 2.5 -6.8 25.0 17.2 Metal products 122 155 203 920 550 674 802 1,078 1,485 4.3 4.8 5.6 9.2 7.0 8.7 5.5 35.3 10.1 Other 114 154 185 1.085 990 1,209 1,332 1,384 1,605 4.1 4.8 5.1 10.8 11.7 9.4 3.7 42.5 8.2 Intermediate Goods 784 885 1,357 4.056 3.726 4,243 5.064 6.244 8.035 27.8 27.6 37.6 40.5 44.4 47.1 8.9 24.5 14.7 For manufacturing 220 309 725 2,373 2,017 2,266 2,690 3.769 4,831 7.8 9.6 20.1 23.7 23.6 28.3 18.6 26.8 15.3 For construction 87 116 73 185 170 280 300 301 420 3.1 3.6 2.0 1.8 2.6 2.5 -8.9 20.4- 17.8 For agriculture 80 118 146 375 330 373 460 482 732 2.8 3.7 4.0 3.7 4.0 4.3 4.4 20.8 14.3 Petroleum 190 183 228 518 665 697 859 929 1,222 6.7 5.7 6.3 5.2 7.5 7.2 4.5 17.8 18.7 Other 207 159 185 605 544 627 755 763 830 7.4 5.0 5.1 6.0 6.6 4.9 3.6 26.7 6.5 Imports for Re-Export 237 235 340 429 405 366 304 313 376 8.4 7.3 9.4 4.3 2.7 2.2 7.7 4.8 -2.6 Tin ore - 105 127 231 265 117 140 224 280 - 3.3 3.5 2.3 1.2 1.6 3.9 12.7 3.9 Natural rubber - 53 74 58 40 62 78 89 96 - 1.7 2.1 0.6 0.7 0.6 6.9 -4.8 10.6 Petroleum - 77 139 140 100 187 86 - - - 2.4 3.9 1.4 0.7 - 12.5 0.1 - Total 2.816 3.205 3.605 10.015 8.591 10.044 11.400 13.822 17.058 100.0 100.0 100.0 100.0 100.0 100.0 2.4 22.7 11.2 /s Gross of re-imports but net of inter-regional trade in Malaysia. Sources: Annual Report and Statement of Accounts (various issues), and Quarterly Economic Bulletin. September 1979, Bank Negara, Malaysia. ANNEX Table 3.4 Page 1 of 2 MALAYSIA PENINSULAR MALAYSIA - EXPORTS OF RESOURCE/NONRESOURCE-BASED MANUFACTURED PRODUCTS: LEVELS, STRUCTURE AND GROWTH RATES, 1971-79 MIC(1972) Levels (in MS million) Structure (Z) Annual growth rates (X) codes Manufactured Products 1971 1972 1973 1974 1975 1976 1977 1978 1979 1971 1975 1979 1971- 1975- 1971- 1975 1979 1979 Resource-Based 311/12 Food Products 107.7 149.2 199.7 246.2 362.3 414.9 388.8 410.3 484.7 18.8 16.7 9.5 35.4 7.6 20.7 3112 {Milk & cream 19.4 24.9 33.8 35.6 54.6 55.0 53.8 54.7 64.5 3.4 2.5 3113 Preserved fruits & preparations 46.7 49.0 46.2 59.3 61.7 77.4 80.3 82.2 68.7 8.1 2.8 3113 Preserved vegetables 5.9 6.8 9.4 10.0 9.7 15.1 9.1 9.2 15.1 1.0 0.4 3114 Fish canned & preparations 4.7 7.3 11.3 18.3 27.1 17.6 19.1 34.1 43.5 0.8 1.2 31169 Cereal & flour preparations 5.6 13.3 18.4 23.7 29.8 43.4 33.9 39.0 48.2 1.0 1.4 3118 Sugar & honey 7.6 18.4 35.0 40.7 82.8 85.4 56.1 70.6 77.5 1.3 3.8 3122 Animal feeding stuffs 7.4 12.7 27.3 27.2 53.3 50.1 63.6 43.0 77.0 1.3 2.5 331 Wood or Cork M4anufacturers 82.7 123.1 212.2 175.8 151.5 248.3 228.6 272.6 355.0 14.4 7.0 6.9 16.3 23.7 20.0 33111 Wood simply shaped 79.1 119.9 208.6 169.4 131.5 248.3 218.9 272.6 354.5 13.8 7.0 3320/3812 Furniture 4.2 6.0 8.6 9.5 13.4 22.9 21.6 30.3 42.4 0.7 0.6 0.8 33.7 33.4 33.5 a, 341 Paper & Paper Products 6.5 10.1 12.4 12.6 12.3 13.9 13.7 19.8 24.6 1.1 0.6 0.5 17.3 18.9 18.1 3419 Pulp, paper & paperboard articles 5.4 8.9 10.0 10.0 12.3 13.9 11.2 19.8 24.6 0.9 0.6 353 Petroleum (Refined) 30.6 28.2 37.8 45.9 41.4 68.4 84.7 46.3 36.0 5.3 1.9 0.7 7.9 -3.4 2.1 355 Rubber Products 26.6 32.0 36.2 52.0 62.3 74.2 85.6 103.2 126.5 4.6 2.9 2.5 23.7 19.4 21.5 3559 Rubber manufactures 9.9 20.3 23.0 32.7 44.3 52.6 60.0 71.5 89.0 1.7 2.0 3559 Rubber fabricated materials 16.7 11.7 13.2 19.3 18.0 21.5 27.0 31.7 37.4 2.9 0.8 3600 Nonmetallic liineral Products 22.4 20.8 22.7 29.9 34.4 43.9 50.4 67.7 66.4 3.9 1.6 1.3 11.3 17.9 14.6 362 Glass & glass products 1.1 2.6 2.4 3.3 5.6 6.7 7.0 6.9 7.3 0.2 2.6 369 other nonemetallic mineral products 17.1 11.4 13.8 17.0 14.5 15.2 20.3 37.6 32.7 3.0 0.7 ANNEX Table 3.4 Page 2 of 2 HIC(1972) Levels (in M$ million) Structure (2) Annual growth rates (X) codes Manufactured Products 1971 1972 1973 1974 1975 1976 1977 1978 1979 1971 1975 1979 1971- 1975- 1971- 1975 1979 1979 Nonresource-Based 313/314 Beverages & Tobacco Hanufactures 49.9 50.7 61.3 74.7 77.8 91.1 107.7 152.4 178.7 8.7 3.6 3.5 11.7 23.1 17.3 3131/2/3 Alcoholic beverages 36.5 34.9 42.7 48.2 52.0 59.8 69.5 94.1 103.0 6.4 2.4 314 Tobacco manufactures 12.6 15.3 17.5 25.2 23.9 28.3 38.2 53.2 68.0 2.2 1.1 321 Textiles 24.3 41.3 62.1 84.3 85.3 138.0 144.8 217.8 267.2 4.2 3.9 5.2 36.9 33.0 34.9 3211 Cotton fabrics 14.1 24.4 40.3 45.6 47.5 75.8 68.0 73.5 77.4 2.5 2.2 3212 Made-up textile goods 2.8 5.5 5.9 9.2 6.3 9.0 11.1 9.3 10.7 0.5 0.3 Other textile fabrics 1.2 5.8 6.7 6.8 10.8 20.2 30.4 42.7 82.6 0.2 0.5 0.5 322 Clothing 27.5 46.2 66.3 83.4 119.7 168.3 179.5 233.2 281.8 4.8 5.5 5.5 44.4 23.9 33.8 324 Footwear 14.2 24.5 22.1 32.2 52.4 55.2 55.7 62.7 75.8 2.5 2.4 1.5 38.6 9.7 23.3 351/352 Chemical 6 Chemical Products 58.4 77.0 99.6 125.7 128.1 133.1 151.1 186.2 236.5 10.2 5.9 4.6 21.7 16.6 19.1 3511 Chemical elements & compounds 6.7 11.6 14.8 19.8 14.9 14.0 18.4 25.3 32.8 1.2 0.7 3511 Dyeing, tanning b coloring materials 7.3 7.0 8.3 9.9 11.4 12.9 17.3 19.0 24.7 1.3 0.5 3512 Fertilizers 6.3 7.5 8.9 8.6 16.3 8.4 8.0 7.2 10.3 1.1 0.8 3522 Medicinal & pharmaceutical products 11.8 16.9 17.8 22.0 22.3 22.2 24.5 28.2 32.4 2.1 1.0 35239 Perfumes, toilet preparations 18.3 20.5 25.7 29.2 32.1 37.9 46.3 44.1 58.3 3.2 1.5 371 Iron & Steel Basic Industries 20.7 36.8 39.8 55.9 45.1 45.8 49.1 75.8 108.6 3.6 2.1 2.1 21.5 24.6 23.0 37101 Iron 6 steel bars, rods (incl. sheet piling) 10.0 21.5 17.7 18.7 11.5 6.3 13.7 26.7 32.9 1.7 0.5 37102 Iron & steel tubes, pipes & fittings 2.5 5.4 7.6 11.7 13.1 20.3 19.4 22.7 36.3 0.4 0.6 37109 Other iron & steel industries 6.3 7.6 10.6 19.1 16.0 12.6 11.8 18.7 28.4 1.1 0.7 Metal Products (Except Machinery) 15.5 21.6 31.5 42.6 47.7 60.5 68.1 91.8 109.9 2.7 2.2 2.1 32.5 23.2 27.7 3811 Household equipment 2.3 3.3 3.8 4.1 2.8 5.0 6.0 10.2 11.0 0.4 0.1 3813 Structural parts & construction materials 4.7 5.2 6.9 9.5 9.5 11.0 17.4 21.4 15.0 0.8 0.4 38191 Metal containers for storage & transport 1.9 2.7 3.8 5.1 10.4 8.2 9.8 15.8 22.9 0.3 0.5 38192 Wire products (except electric, fencing, grill) 1.0 4.7 7.7 8.1 7.6 12.9 12.0 11.1 17.9 0.2 0.4 Ulachinery & Transport Equipment 61.7 66.9 125.6 411.4 518.0 675.8 962.6 1,708.4 2,233.1 10.7 23.9 46.3 70.2 44.1 56.6 382 hachinery (except electric) 21.4 22.2 51.8 141.8 154.2 97.4 137.4 142.1 183.1 3.7 7.1 3.6 48.0 4.4 31.0 383 Electrical machinery 21.8 23.7 38.0 218.2 317.8 529.1 857.5 1,566.4 2,049.7 3.8 14.6 40.0 95.0 60.0 76.0 384 Transport equipment 18.3 21.0 35.8 51.5 45.9 49.4 128.9 95.3 138.9 3.2 2.1 2.7 385 Professional. Scientific & Control Instruments 0.7 1.2 104.0 254.1 323.4 326.6 231.0 117.2 104.3 0.1 14.9 2.0 364.0 -24.6 86.9 Miscellaneous 20.4 33.0 45.1 65.6 95.2 146.1 213.3 175.4 255.3 3.6 4.4 5.0 47.0 28.0 37.1 Resource-Based 280.7 369.4 529.6 571.9 677.6 886.5 873.4 950.2 1,135.6 48.9 31.2 22.2 24.7 13.8 19.1 Nonresource-Based 293.3 399.2 657.4 1,111.0 1,492.7 1,840.5 2,162.9 3,020.9 3,851.2 51.1 68.8 77.8 50.2 26.7 38.0 Total 574.0 768.6 1,186.5 1.801.8 2,170.9 2,727.0 3,032.4 4,066.3 5,125.7 100.0 100.0 100.0 39.5 24.0 31.5 Source: Annual Report. 1979, halaysian Industrial Development Authority (forthcoming). Annex Table 3.5: MAIAYSIA: EXPORTS OF MANUPACTURED AND OTHER PRODUCTS: AT LEVELS, STRUCTURE AND GROWTH RATES, 1969-77, AT CONSTANT PRICES SITC (Rev.) M$ million at 1970 constant prices Structure (Z) Annual srowth rates (X) Codes Description 1969 1970 1971 1972 1973 1974 1975 1976 1977 1969 1973 1977 1969-73 1973-77 1969-77 Food Manufactures 319.5 359.6 476.4 585.5 668.3 772.2 972.1 1.066.6 1.098.6 6.3 11.5 13.5 20.0 13.2 15.8 032 Fish, canned 5.4 3-7 2.5 3.9 4.6 5.5 8.9 5.6 8.0 0.1 0.1 0.1 -3.8 14.7 5.1 053 Fruits & vegetable juices 3.2 2.5 6.3 8.5 7.0 6.4 6.4 6.5 6.3 0.1 0.1 0.1 21.8 -2.8 8.9 053 Pineapples, canned 43.9 42.3 39.5 39.2 35.9 36.5 30.1 35.3 34.5 0.9 0.6 0.4 -5.1 -1.0 -3.1 422 Other fixed vegetable oils la 265.0 309.2 426.2 531.0 613.9 713.5 897.6 976.0 982.2 5.2 10.6 12.1 23.4 12.5 17.8 431 Other vegetable oils 0.2 0.4 0.7 1.0 4.7 8.0 25.9 39.2 63.6 - 0.1 0.8 100.0+ 91.8 100.0+ Textiles. Clothing & Footwear 24.1 34.9 38.4 60.9 62.0 72.7 117.5 131.7 141.7 0.5 1.1 1.7 26.6 23.0 24.8 651 Textile yarn & thread 3.0 3.1 3.5 7.9 5.0 6.2 6.3 11.0 11.3 0.1 0.1 0.1 13.7 22.8 18.2 652 Cotton textile fiabrics 9.8 9.2 15.7 21.9 23.5 26.2 49.6 42.0 36.9 0.2 0.4 0.5 24.5 11.9 18.0 653 Textile fabrics 1.3 2.2 4.9 10.4 8.6 7.2 11.8 20.5 32.2 - 0.2 0.4 59.2 39.3 48.9 841 Clothing 5.0 16.0 6.7 8.7 14.0 18.6 22.7 30.3 35.5 0.1 0.2 0.4 15.4 26.3 27.7 851 Footwear 5.0 4.5 7.6 15.1 11.0 14.5 27.2 28.0 25.9 0.1 0.2 0.3 21.8 23.8 22.8 Wood Products 185.4 211.5 203.3 270.9 340.9 292.5 282.7 458.7 462.2 3.7 5.9 5.7 16.5 7.9 12.1 243 Wood simply shaped 180.0 205.8 194.8 260.6 330.4 282.1 278.3 450.2 449.5 3.6 5.7 5.5 16.4 8.0 12.1 631 Wood mouldings 5.4 5.7 8.4 11.2 10.3 10.3 10.3 8.3 12.6 0.1 0.2 0.2 17.3 5.2 11.1 Rubber Manufactures 12.7 14.5 15.7 17.8 19.4 18.6 19.5 19.4 19.3 0.3 0.3 0.2 11.2 - 5.4 621 Rubber fabrications 8.3 9.3 9.5 10.4 10.8 11.9 11.6 14.8 15.1 0.2 0.2 0.2 6.8 8.7 7.8 629 Other rubber manufactures 4.4 5.3 6.3 7.5 8.6 6.7 7.9 4.6 4.3 0.1 0.1 - 18.3 -19.0 -0.3 332 Petroleum Products 150.6 157.9 87.7 76.9 60.7 29.9 17.1 20.1 13.0 3.0 1.0 0.1 -25.5 -47.0 -35.8 661 Nonmetallic Mineral Manufactures /b 32.6 15.1 9.4 6.4 2.9 2.0 1.9 1.2 1.4 0.6 0.1 - 83.4 -19.6 -48.1 Metal Products 1.012.1 1.012.5 969.8 1.089.9 916.4 963.0 889.5 952.1 756.6 20.0 15.8 9.3 -2.5 -4.9 -3.7 284 Nonferrous scrap 14.1 6.8 10.2 19.1 23.4 21.8 28.2 42.9 16.3 0.3 0.4 0.2 13.5 -9.3 1.9 687 Tin & alloys 998.0 1,005.7 959.6 1,070.8 893.0 941.2 861.4 909.3 740.3 19.7 15.4 9.1 -2.8 -4.8 -3.8 Machinery 84.0 84.2 78.5 83.7 124.8 320.3 423.3 522.1 683.8 1.6 2.1 8.4 10.4 52.9 30.0 71 Machinery, nonelectrical 48.8 48.9 35.7 41.3 70.2 131.6 151.2 97.8 66.9 0.9 1.2 0.8 9.5 -1.2 4.0 72 Electrical machinery 10.4 10.4 12.7 11.7 23.2 155.6 224.4 371.2 567.5 0.2 0.4 7.0 22.2 100.0+ 64.9 73 Transport equipment 24.8 24.8 30.1 30.7 31.4 33.1 47.7 53.1 49.4 0.5 0.5 0.6 6.1 12.0 9.0 Total Manufactured Products 1.821.0 1.890.1 1.879.2 2.191.9 2.195.2 2.471.2 2.729.7 3.171.9 3.176.7 36.0 37.8 38.9 4.8 9.7 6.9 Total All Other Products 3.230.6 3.273.1 3.363.0 3.107.3 3.609.6 3.864.9 4.047.8 4.688.9 4.980.0 64.0 62.2 61.1 2.8 8.4 5.7 Total All Merchandise 5.051.6 5.163.2 5.242.2 5.299.2 5.804.8 6.336.1 6.777.4 7,860.8 8.156.6 100.0 100.0 100.0 3.5 8.9 6.2 Note: Subtotals may include minor items. la May include linseed/coconut/castor/other fixed vegetable oils besides palm/palm kernel (oil). /b May include lime, cement and fabricated building materials except glass and clay CSITC (Rev) 6611. Source: Based on J. Stern, Growth and Structural Change in Commodity Exports (Economic Planning Unit, 1979, unpublished). -49- ANNEX Table 3.6 MALAYSIA MANUFACTURED AND MERChANDISE EXPORTS BY SITC (Rev) SECTIONS AND SELECTED DESTINATIONS, 1973 AND 1978 SITC (Rev)5 SITC (Rev)6 SITC (Rev)7 SITC (Rev)8 SITC (Rev)5 to 8 SITC (Rev)O to 9 Destinations Chemicals Mfd. goods Machinery and Hiac. mfd. All mfd. Products All merchandise transport equip. articles 1973 1978 1973 1978 1973 1978 1973 1978 1973 1978 1973 1978 Value of Exports by Selected Deatinationa and Commodity Sectiona in MS million USA 1.7 9.9 336.5 780.3 11.6 882.0 69.4 86.2 419.2 1,758.4 797.9 3,182.9 Singapore 27.7 43.4 100.7 204.7 78.4 338.1 50.1 92.8 256.9 679.0 1,714.7 2,761.6 Japan 1.7 10.6 337.6 537.4 0.7 79.3 3.3 38.3 343.3 665.6 1,334.1 3,703.0 Netherlands 0.3 0.1 59.9 379.1 0.2 2.8 4.3 14.4 64.7 396.4 274.0 963.1 United Kingdom 1.2 1.2 117.7 158.2 1.3 57.6 15.1 36.8 135.3 253.8 582.9 821.9 Weat Germany .. 0.5 24.2 34.6 2.7 87.0 12.4 88.5 39.3 210.6 279.5 617.4 Rest of the World 32.9 37.7 344.9 726.6 55.6 373.5 53.8 138.8 497.2 1,276.6 2,389.1 5,044.3 Total (World) 65.5 103.4 1.321.5 2,820.9 150.5 1.820.3 218.4 495.8 1.755-9 5.240.4 7.372.2 17.094.2 Z of Exvorta to Slected Deatinationa by Commoditv Sections USA 0.2 0.3 42.2 24.5 1.5 27.7 8.7 2.7 52.5 30.3 100.0 100.0 Singapore 1.6 1.6 5.9 7.4 4.6 12.2 2.9 3.4 15.0 24.6 100.0 Japan 0.1 0.3 25.3 14.5 0.1 2.1 0.2 1.0 25.7 18.0 Td- - Netherlanda 0.1 .. 21.9 39.4 0.1 0.3 1.6 1.5 23.6 41.2 lOU.U __ United Kingdom 0.2 0.1 20.2 19.2 0.2 7.0 2.6 4.5 23.2 30.9 ID" Weat Germany .. 0.1 8.7 5.6 1.0 14.1 4.4 14.3 14.1 34.1 111 1UD" Total (World) 0.9 0.6 17.9 16.5 2.0 10.6 3.0 2.9 23.8 30.7 100.0 100.0 X of Exporta by Selected Commodity Sections to Deatinationa USA 2.6 9.6 25.5 27.7 7.7 48.5 31.8 17.4 23.9 33.6 10.8 18.6 Singapore 42.3 42.0 7.6 7.3 52.1 18.6 22.9 18.7 14.6 13.0 Z- I.7 Japan 2.6 10.2 25.6 19.1 0.5 4.4 1.5 7.7 19.6 12.7 T1.T Z.7 Netherlanda 0.4 0.1 4.5 13.4 0.1 0.1 2.0 2.9 3.7 7.6 37 -5 United Kingdom 1.8 1.2 8.9 5.6 0.9 3.2 6.9 7.4 7.7 4.8 7ZY V.w Weat Germany .. 0.5 1.8 1.2 1.8 4.8 5.7 17.9 2.2 4.0 ___ ___ Total (World) 100.0 100 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Sources: Malavsia. Annual Statistical Bulletin. 1973 and 1978 (Department of Statiatics, Malaysia). -50- ANNEX Table 3.7 Page 1 of 2 Peninsular MalaYsia. Manufactured Exports. Sales. Gross Output & Employment by Divisions & Selected Products, 1973 & 1978 (Values in M$ million at current prices) MIC (1972) Exports (X) Sales (S) Output (0) Exports/output (X) Exports/sales (21 Codes Divisions/Selected Products 1973 1978 1973 1978 1973 1978?A 1973 1978 1973 1978 31 Food. Beverage & Tobacco Products 261.0 542.4 1.629.9 3,110.3 2.357.5 4.497.5 11.1 12.1 16.0 17.4 Cereal & flour preparations 18.4 39.0 119.8 205.5 124.0 212.7 14.8 18.3 15.4 19.0 Sugar 6 honey 35.0 70.6 236.9 416.3 235.9 404.7 14.8 17.4 14.8 17.4 Animal feeding stuffs 27.3 43.0 90.1 231.4 143.0 367.2 19.1 11.7 30.3 18.6 Tobacco products 17.5 53.2 322.6 612.7 343.6 652.5 5.1 8.2 5.4 8.7 32 Textiles. Clothing 6 Footwear, etc. 150.5 513.7 365.4 1.194.5 415.4 1.358.1 36.2 37.8 41.2 43.0 Textiles 62.1 217.8 244.0 956.9 291.9 1,144.5 21.3 19.0 25.5 22.8 Clothing 66.3 233.2 105.6 207.3 103.3 202.9 64.2 114.9 63.0 112.5 Footwear 22.1 62.7 15.9 30.3 18.6 35.5 118.8 176.6 139.0 206.9 33 Wood & Wood Prod. (Incl. furniture) 220.8 302.9 204.8 367.8 824.9 1.481.1 26.8 20.5 107.8 82.4 34 Paper & Paper Prod. (incl. printing etc.) 12.4 19.8 220.3 427.5 300.8 583.5 4.1 3.4 5.6 4.6 35 Chemical. Petroleum. Coal. Rubber 6 Plastic Products 173.6 335.7 1.724.9 3.823.1 1.944.8 4.308.6 8.9 7.8 10.1 8.8 Basic industrial chemicals 23.1 44.3 54.4 91.5 51.6 86.8 44.8 51.0 42.5 48.4 Fertilizers 8.9 7.2 79.9 190.8 117.4 280.3 7.6 2.6 11.1 3.8 Medicinal & pharmaceutical Prod. 17.8 28.2 13.9 39.8 22.9 65.8 77.7 42.9 128.1 70.9 Perfumes & toilet preparations 25.7 44.1 37.6 74.1 36.5 71.9 70.4 61.3 68.4 59.5 Petroleum products 37.8 46.3 228.5 1,182.5 232.6 1,203.8 16.3 3.8 16.5 3.9 Rubber products 36.2 103.2 1,062.1 1,732.0 1,062.7 1.733.7 3.4 6.0 3.4 6.0 36 Nonmetallic Mineral Products 22.7 67.7 155.2 384.8 244.6 606.4 9.2 11.2 14.6 17.6 37 Iron & Steel Basic Products 39.8 75.8 89.0 247.8 247.0 687.6 16.1 11.0 44.7 30.6 38 Fabricated Metal Prod. (incl. mach. & equip) 261.1 1.917.4 707.8 2,791.2 1,239.2 4,887.4 21.1 39.2 36.9 68.7 381 Fabricated Metal Products (exc. mach. 6 equip) 31.5 91.8 261.2 520.4 364.9 727.0 8.6 12.6 12.1 17.6 383 Electrical Machinery 38.0 1,566.4 299.1 1,968.7 411.4 2,709.0 9.2 57.8 12.7 79.6 384 Transport Equipment 35.8 95.3 147.5 302.1 234.0 479.4 15.3 19.9 24.3 31.5 Total Manufacturing (incl. others) 1.186.5 4.006.3 5,425.1 13.549.1 7.677.7 19,172.0 15.5 20.9 21.9 29.6 1310 Sa lea tL sboc X *1. (1972) Dlvlsl.ons/Selected Products Thanges 1913-78) 1976 _ L X . X WON0 (S/1) S Codesa _ _S _L L _ Z 9s X 19.3 1978 1973 1918 73trd 31 Food, Bevsrcsa IeSs7ob4r Products 281,4 1.480.u 7,J32 31.338 Lg 1 412 13.9 66.2 9-83 3.921 .5.62 i t35 Iareal S floor peaprat.tns 20.6 83., 32r 1,399 24.0 74 1.2 375.7 2D3.7 103 191 86 55gar b honey 35.6 179.4 ^.159 2,478 19.8 -31 1.1 89.8 158.2 390 420 30 Anteol leedis stuffs 15.7 141.3 710 1.775 11.1 79 9.5 84.6 130.4 323 350 I - obacco products 35.7 290.1 545 3,804 12.3 67 24.9 99.0 161.1 177 330 153 32 rexctes. CtothInm 4 rootwear. etce. 363.2 82L.2 24,061 3,095 43.8 t.539 27.9 2.6 22.5 11.944 22.298 10.354 Textiles 135.7 712.9 17,014 35,554 21.6 3. 105 18.5 =..2 16.9 4,re5 6,907 31392 clorbAlq 166.9 135,2 6,534 13,587 [64.1 :0,72Z z6.6 13.7 13.3 5,662 17,534 11,867 7sor-woar 40.6 14.4 511 1,954 291.9 1,441 23.2 31.0 15.5 2,099 4,D45 2,036 33 Vood f Vo4d prod. (Ipl1. ,uraiturc) 82.1 163.0 2.9L7 17 B3S 50.4 1,472 6.3 13.7 20.6 1631V I4.20 -1.413 34 Poser 6 Pser PrDd, (tocl. painting etc.) 7.4 2D7.1 4,410 16,057 3.6 59 S.8 18.9 22.6 656 676 220 35 ChemicsaJ Psttroleut. Coal, Rubber 4 Psastic Prod.cts 162.1 2,096.2 [3.607 49.426 7.7 1,048 14.1 48.2 74.4 3L622 4.228 626 Deal. id.,strisl obemicois 21.1 273 7124 L,508 37.1 413 13. 77.6 60.7 611 730 L19 FertLliecrs -1.7 110.9 499 1,469 -1.5 -7 -4.2 97.9 92g.9 g 9 55 36 tiedicimel. J p1ru-ceutlcel Prod. 10.4 23.9 754 .,257 40.2 323 9.6 13.6 22.7 I,290 1,242 -49 Perfanes & tollet preperattona 18.4 36.5 246 1,039 50.0 124 12.4 47.6 '1.3 540 329 -L44 Petroleu products 8.35 954.0 78 566 0.9 1 4.1 46S,3 2,059.2 e1 22 -59 Rubber products 67.0 669.9 6,917 28,803 L3.0 692 233 43.5 36.4 746 1,194 450 36 11uiwstslc lirersl Prsducts 45.0 229.e 2.201 5.483 19,6 431 24.4 47.3 70.2 490 96s 464 37 troP A Steel Basic Froducts 39.0 135.6 1.351 4.015 22.7 307 13,S 23.4 61.7 3,193 1,229 37 38 Pabricated Mctal 4rod. (incl. each 6 routp1 1.656.3 2,083.4 45,849 85.626 79.5 36.459 t21.7 17.7 32.5 14.751 58.997 4.426 381 Yabricared Iletel Products (exa. mech s equi2) 60.3 259.2 4,229 :4,729 23.3 995 23.8 24.9 35.3 1,265 2,60] 1.336 3E3 ileCtnTcal Kctiuexy 1.526.4 1,669.6 36,395 60,957 94.6 26,798 233.4 13.3 32.7 2,es7 48.495 45,638 3S Tres.,orprt Ic.utrIt !3.5 .$k.6 3,125 9,1-41 39.5 L,242 2Lt. 21.3 29.6 1,68.L 3.196 1"SI) Totel oltofactupu.ps IncA. achersn 2,319.6 8.124.0 L11.154 292.3042 34.7 3.7 27.6 30.0 46.4 34.550 86.363 66,3 Jg Gross output estimted by applying the 1973 ourpLtr.ulea riot to 1978 sales. - 1978 m1nus 1973; L- Number of paid full-nIpna ecipLeyen X - Annual growth rats of exports from 1973 to 1978 in percentage. Sourcer A0new Tables 2.9 and 3.4; Monthly Industrial Statistlcs, Decenber 1973 and 4uly 1979 jlaparttest of Statistics, Halayaia). -52- Annex Table 4.1: MALAYSIA: PROPOSED TOTAL INVESTMENT Itl MIDA'S APPROVED PROJECTS BY YEAR OF APPROVAL (1974-1979) AND ACTUAL TOTAL INVESTMENT BY PIONEER COMPANIES (1968-1979) BY MAJOR INDUSTRIAL GROUPS Proposed total investment Paid-up capital and loans by year of approval (in M$ million) of pioneer companies on December 31 (in M$ million) Major industrial groups 1974 1975 1976 1977 1978 1979 1968/a 1969/a 1973La 1974 1975 1976 1977 1978 1979 Food manufacturing 177 298 176 234 284 172 ) 97 ) 117 139 191 197 225 249 302 311 Beverages & tobacco - 2 - 17 11 63 ) ) 24 36 36 36 36 48 48 Textilea 6 textile products 319 115 47 30 40 103 32 54 149 172 211 316 374 476 476 Leather & leather products 4 1 3 10 2 4 - - 1 1 1 2 2 4 4 Wood & wood products 46 87 94 81 61 121 12 25 116 135 135 195 202 213 225 Furniture & fixtures 6 8 3 9 20 2 1 2 - - - - - - - Paper, printing 6 publishing 42 455 176 15 7 11 7 7 6 7 7 10 10 9 9 Chemicals & chemical products 178 61 197 178 65 50 79 86 106 118 119 156 163 203 203 Petroleum 6 coal - 2 - 5 4 2,603 127 129 93 100 100 158 158 182 182 Rubber products 31 19 25 51 70 67 29/b 28Lb 37 36 73 109 125 154 160 Plastic products 15 20 13 13 16 29 4' 4 36 55 66 82 83 67 67 Nonmetallic mineral products 148 124 43 45 74 492 21 25 52 95 105 103 112 138 138 Basic metal industries 66 41 48 6 53 226 52 70 113 119 119 123 123 117 117 Fabricated metal products 69 33 64 31 166 191 14 14 45 60 61 82 86 109 110 Machinery manufacturing 19 21 20 30 25 30 3/c 8/c 5 24 29 35 35 50 52 Electrical & electronic products 124 69 39 51 177 215 16 21 56 127 186 223 245 263 281 Transport equipment 135 60 50 44 10 38 - - 5 4 7 21 22 32 32 Scientific 6 measuring equipment 10 2 3 3 2 5 - - 8 6 6 5 8 22 28 Miscellaneous 37 9 5 ,11 10 14 3 3 10 11 9 5 14 23 32 Hotel & tourist complexes 166 10 215 21 25 104 - - 43 74 157 84 219 298 329 Total Industry 1,590 1.436 1.220 883 1,123 4,539 496 593 1.043 1.370 1.619 1.970 2.266 2,709 2,804 Total Manufacturing 1,425 1.427 1,005 862 1,098 4,435 496 593 1,000 1,296 1.463 1.886 2,046 2,410 2,475 (excluding hotels, etc.) /a Refers to West Peninsular Malaysia only. /b Including leather and leather products. /c Including transport equipment. Sources: Aenual Reports (various issues), MIDA. -53- ANNEX Table 4.2 'MALAYSIA MALAYSIAN AND FOREIGN CAPITAL INVESTMENT AS AT DECEMBER 31. 1977 IN INDUSTRIAL PROJECTS APPROVED AND IMPLEMENTED (In M$ million) Year of approval Before 1968 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 Total Number of projects 116 44 96 138 128 147 212 209 148 129 369 1,736 Paid-Up Capital Malaysian 282 66 197 186 291 155 234 197 86 59 265 2,018 Foreign 337 40 74 105 105 106 260 80 35 22 222 1,386 Loan Capital Malaysian 217 64 118 97 223 155 175 109 77 27 119 1,381 Foreign 37 25 8 9 86 ,62 417 145 17 3 53 862 Total Capital Malaysian 254 89 126 106 309 217 592 254 94 30 172 2.243 Foreign 619 106 271 291 396 261 494 277 121 81 487 3,404 Total Capital Investment 873 195 397 397 705 478 1.086 531 215 111 659 5.647 Source: Survey of Manufacturing Firms. 1977, Ministry of Trade and Industry, Industry Division, Malaysia, (Unpublished). -54- MALAYSIA ANNEX Tnble 4.3 MALAYSIAN AND FOREIGN CAPITAL INVESTINENT IN ALL INDUSTRIAL PROJECTS AND PIONZER COMPANIES APPROVED BY NIDA, 1968-79 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Propoond Invontu_nt by Ae,gprvnl Y_nr of 4ll_1L4nufnctmri vojpnctn GwintMr Approynl by MIDA in II M4illian Nunber of approvalo 44 143 332 266 332 460 509 453 409 397 423 476 Proponad paid-up capital: Nal1yaian ) 236 } 323 1 358 ) 352 278 400 405 291 244 293 723 Foreign } } ) 1 253 256 155 94 106 175 485 Propoaed loan: Total 295/n. 404/a 447/a 440/a 662 769 867 620 512 630 3,227 Proposed Total Capital Inveataent 531 727 805 792 1,193 1,425 1,427 1,005 862 1,098 4,415 Potential employment 23,966 44,783 38,903 55,540 80,788 71,378 36,171 29,258 29,056 36,426 51,920 Actual Capital Inveatnant by All Pionner Conpanion in NO Nillion oan at Deacobor 31 Nunber of antabliahmenta 129 152 161 184 198 236 274 310 332 363 394 416 Paid-up capital: Nnlayoian 149 181 207 244 273 405 550 609 726 753 950 976 Foreign 244 291 299 348 382 420 519 599 709 758 908 925 Loan: Nnlayaian 52 67 56 75 87 120 147 167 277 306 323 340 Foreign 51 54 51 45 57 55 80 88 174 229 229 234 Capital inveatment: Maloyaian 201 248 263 319 360 525 697 776 1,003 1,059 1,273 1,316 Foreign 295 345 350 393 439 475 599 687 883 987 1,137 1,159 Total 496 593 613 712 799 1,000 1.296 1,463 1,86 2,046 2,410 2.475 /n aioaionao cotimate. Sourcea: Annual Reporto (vnriouo iaauea), MIDA. -33- ANNEX TABLE 4.4: MALAYSIA: 7.71FRTS OF MACHINERY AND TRANSPORT g0UIPHENT. 1967 AND 1970-1978 Level.t In9 mil1l.O A.n..aI Grooth Rot..(%) SETc(Rv 1967- 1970- 1967. Cod.. 01v1.Ioo./ Soloc.td Croup. 1967 1970 1971 1972 1973 1974 1975 1976 1977 1978 , 92 19 7 1977 711 Pov-r ..neratLcg M.hi.nery 49.8 82.4 75.2 94.2 103.6 147.4 151.7 157.2 200.8 317.0 11.1 13.6 15.0 (Other Th6. .lectrlc) 712(.cc.712.5) ASrgL-Itur-l M..htoery 6 Appli.nc. 13.5 22.8 25.6 20.3. 8.3 12.5 1l.5 21.0 27.2 -- IS.5 11.6 13.8N 712.5 Tractor Rocopt S20.0 13.2 26.3 31.7 29.0 22.0 . _ 714 Office Hnchi..ry 13.9 17.5 22.1 20.3 31,6 67.3 92.0 82.0 70.8 - 7.9 22.0 17.7 715 Mt.1. WornkIg Nichinecy 13.8 18.0 22.6 25.8 28.1 58.1 4i.6 39.5 37.3 -- 13.3 11.0 10.5 717 Teotile end Le-th-o Machli.ry 9.8 22.5 54.1 33.4 68.4 218.0 811.6 44.4 52.2 165.9 28.0 12.8 18.2 718 Nochinery for Spoolel I.dvatrin. 107.9 163.0 189.0 207.0 269.1 454.8 277.6 348.5 420.0 -- 14.0 14.5 14.6 719.1-719.7 Indu-trill Mohtnery 216.4 357.9 330.0 297.4 337.8 -- 108.7 191.4 215.3 233.9 .16.6 15.2 16.9 719.8-719.9 Nonhi-ery nnd Port.. o.-. 85.3 138.0 139.7 162.5 177.0 -- 71 SUR-TOTAL 317.4 517.6 603 9 624.9 824.0 1,480.2 1,172.4 1,191.0 1,343.1 1858.7 14.5 14.6 15.6 722 ElectriIal Po-er MsahiLery 44.7 52.6 61 2 7. 9 89.0 238.5 360.4 423.2 538.1 -. 11.7 39.0 28.0 (ard 8 Lthgoer) 723 Electric Dlcrlib. Eq.lp-t 17.5 13 9 27.5 19.3 30.7 63.4 75.8 52.2 62.7 -- 2.2 24.0 13.6 724 TlOlec Equlp-.nt 45.6 70.9 106.8 86 3 93.1 163.1 182.2 262.3 312.4 -- 13.6 24.0 21.0 725 D.9-0.i. ElectrIc Equlpoet 18.9 19.8 16.8 17.6 23.3 23.3 35.3 40.1 61.4 -- -- 17.5 12.5 726 ELectro-Mcdlal, Redloioglcol 3.7 1.5 3.5 2.7 0.0. flO. 0.0. f.0. Oc. -- -- re. 0.0. 729 Other Eleotric MN,LhILery 28.7 36.0 36.8 53.6 77.8 174.7 195.3 273.2 308.1 -- 13.4 36.0 27.0 72 SUB-TOTAL 159.1 194.7 252.6 257.6 315.8 686.4 852.3 1,054.6 1,287.4 1,738.0 10.2 31.0 23.0 731 Rsill-y Locowtlv- 0tc. 4.3 4.3 22.3 29.5 4.9 21.8 6.6 30.3 14.5 -- 47.0 19.0 12.9 732 Road Noto- Vehicle. 225.2 398.3 426.1 393.6 544.4 901.0 643.4 756.6 1,004.5 507.0 11.9 14.1 16.1 733 Oth-r Rond Vehiltet 10.9 11.8 10.2 12.5 19.5 23.7 18.8 19.9 n.n. -- 2.9 0.0. 0.0. 734 AlrLrnft 15.0 65.9 10.3 145.9 32.2 74.1 42.1 112.2 73.5 60.0 1.7 17.3 735 Ship. acd Boate 3.9 4.7 7.2 6.8 19.6 18.5 26.3 22.2 13.3 -- 11.7 16.0 13.1 73 SUB-TOTAL 259.3 485.0 476.1 588.3 640.6 1,039.2 737.2 941.2 1 131.5 1 349.4 17.8 12.9 13 9 TOTAL 735.8 1 197.3 1 332.6 1 470.8 1 780.4 3 205.9 2 765.0 3 177.3 3,763.9 4,945.9 14.9 17.8 17.7 Source., Yearbook of Incorcoclonal Trade catltlee. 2 Vol. I (1976 & 1978; I..o MNl-y-li: S .ond Plan Perftorfane .d Third Plan I-..... V. uiw 1. (Report No. l7.n-A. The Wor Bk). -56- ANNIEX Table 4.5 INDICATORS OF PRIVATE INVESTMENT IN 14ANUFACTURING & WHOLE ECONOMY, 1970-79 Second Malysian Plan Third Malaysian Plan Source Unit 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1. Imports of Capital Goods 1.1 Machinery & transport equipment DOS/a MS mil. 364 396 574 621 1,077 840 744 916 1,046 1,569 1.2 Hachinery & nontransport capital equip. BEC 41*/b MS mil. 317 924 1,761 1,553 1,685 1,976 1.3 Transport equipment BEC 51* 482 525 871 594 756 960 6 52*/b MS nil. 1.4 MIachinery and transport equipment BNMHc M$ nil. 1,365 1,200 1,327 1,408 1,714 1.5 Metal products & other investment goods ,, IC Ms oil. 2,005 1,540 1,883 2.134 2,462 1.6 Machinery 6 transport equipment SITC MS nil. 956 1,069 1,212 2,235 2,017 2,238 2,547 2. Sales of Construction Materials 2.1 Metallic products DOTLd 000 tons 121 127 155 182 315 283 315 360 425 480 2.2 Cement 000 tons 1,040 1,094 1,162 1,292 1,362 1,467 1,726 1,795 2,180 2,457 2.3 Paints, varnishes 6 lacquors Mil litre 11.4 11.9 14.5 17.8 16.7 17.3 20.3 23.5 27.0 32.5 3. Investment in HIDA's Approved Protects 3.1 Proposed investment IODA1e 11$H il. 727 805 792 1,193 1,425 1,427 1,005 862 1,098 4,435 3.2 Estimated investment (100: 25; 25; 25; 25; profile) Missionjf HS nil. 257 473 827 992 953 781 748 3.3 Estimated investment (100: 25; 35; 10; 5; 25 profile) Mission/f 229 258 476 742 1,011 964 823 741 3.4 EstiMated investment (another profile) Missioa/f MS sil. 149 397 445 442 689 1,270 1,116 1,272 4. Other Estimates of Manufacturinp. Investment 4.1 Increase in net fixed assets DOSz MS mil. 185 160 370 636 731 4.2 Survey of manufacturing fires MTIf MS nil. 705 478 1,086 531 215 111 659 4.3 Investment by pioneer companies HIDA/i MS nil. 99 87 201 296 166 423 160 364 4.4 Proposed investment by pioneer companies MIDAj MHS nil. 895 979 325 632 288 462 4.5 Imports of capital goods Mission/n MS nil. 284 394 772 616 535 594 4.6 Actual capital expenditure 285 271 321 493 (of which manufacturing) BEStk MS oil. (153) (119) (159) (250) 4.7 Increase in fixed investmnent SITfl 1 change +9.9 +6.4 +7.6 +9.5 +12.1 /a Imports of machinery and transport equipment SITC (Rev.) 7 less imports of items which go into intermediates and final consumption. Thus capital goods constituted only 252 to 29Z of SITC (Rev.)7, In 1976-79. See Business Expectations Survey Peninsular Malaysia, Fourth Quarter 1979 (Department of Statistics, Malaysia) for details. /b Broad Economic Categories (DEC) 41* consists of machinery and other capital equipment (except transport). BEC 51* and 52* consist of transport equipment (but no parts and accessories). SITC (Rev.) codes that are included in these categories are given in Classification by Broad Economic CateRories Series M No. 53, (United Nations, New York. 1971). Lc Imports by economic function are estimated by Bank Negara on the basis of a fairly detailed reclassification of SITC codes. /d Sales of construction materials are estimated annually by the Department Treasury. Metallic products consist of galvanized iron sheets; welded iron, tubes and fittings; cast iron pipes, tubes and fittings; structural shapes, and complete steel structure, bara and rods for reinforced concrete. /t Proposed investment is measured by MIDA as the sum of paid up capital and loans. But loan figures were not available prior to 1973. They have been estimated by the mission. Il 1ission's estimation procedure is explained in Section V. Investment in Manufacturing Sector, page V-7. Increase in net fixed assets of manufacturing sector in Peninsular Malaysia is derived from the Manufacturing Census, 1974 published by the Dept. of Statistics. /h Survey of manufacturing firmas is conducted by the Ministry of Trade 5 Industry, Industry Division. See pages V 10-11 for details. /i Total investment is defined as the sum of paid up capital and loans at the end of year 'T minus 'T-1'. See page V-Il and Annex Table 4.1 for further details. 1 Proposed investment by pioneer companies according to their year of approval. ft Business Expectationa Survey (BES), quarterly conducted by the Department of Statistics, covers a sanple of 220 largest companies in the corporate sector. /I Survey of Industrial Trends (SIT), quarterly conducted by Bank Negars, covers 70 manufacturing fires. /f Mission estimate derived from selected SITC codes. See Table 5.3 (in text) for details. Sources: Economic Report 1979/80 (Ministry of Finance, Malaysia); Quarterly Economic Bulletin, December 1979 (Bank Negars Malaysia); Annual Report and Statement of Accounts, various issues (Bank Negara Malaysia); Survey of Industrial Trends, unpublished (Bank Nagars Malaysia); Business ExPectations Survey, Fourth Quarter 1979 (Department of Statistics, Malaysia); Annual Report, various issues (Federal Industrial Development Authority); Yearbook of International Trade Statistics. Volume I, 1976 and 1978 (United Nations, New York). -5 7- ANNEX TABLE 5.1: MALAYSIA: COMHERCIAL BANKS AND FINANCE COMPANIES. OUTSTANDING LOANS AND ADVANCES IIY MAJOR INDUSTRIAL GROUPS, 1965 AND 1970-1979 Major Industry Groups Annual Major Industry Groups GComnercial Banks Grovth 1965 1970 1971 1972 1973 ~~~~~~~~~~~~~~~~~~~~Rote (7.) 1965 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1970/1978 Food, Beverages & Tobacco 49.1 67.9 80.7 79.4 83.1 104.3 133.9 125.5 124.7 233.5 236.1 16.7 Textiles & Wearing Apparel 3.2 12.2 28.2 61.3 91.8 150.7 187.7 199.5 240.8 262.9 255.6 46.8 Wood & Wood Products 4.4 15.1 19.4 28.7 26.7 34.1 48.7 69.7 93.7 127.0 143.9 30.5 Printing & Publishing 5.6 12.5 15.2 16.7 32.1 44.9 46.5 54.6 70.2 130.8 137.9 34.1 Rubber Products 36.9 41.7 32.6 35.6 62.0 44.4 75.9 82.5 75.3 108.0 122.9 12.6 Soaps & Oils 12.4 35.5 46.8 37.6 56.7 29.3 43.2 76.9 90.4 129.1 170.2 17.5 Building Materials 12.3 39.9 33.8 32.3 69.7 91.2 106.8 116.2 128.3 189.8 239.8 21.5 Metal Prod. & Machinery 10.5 114.6 142.5 135.6 194.0 206.9 229.9 264.9 277.2 378.1 390.8 16.1 Other Manufacturing 39.8 126.2 178.7 183.1 267.4 351.2 391.0 392.2 494.1 666.3 760.2 23.1 Total Manufacturing (A) 174.2 465.6 569.9 610.3 883.5 1,057.0 1,265.6 1,382.0 1,594.7 2,225.5 2.457.5 21.6 Total Loans & Advances (B 1,141,1 2359.6 2667 3,1793 4,867.1 5,575,6 6,46i.4 8,061.4 9,557.8 12,288.4 14,0012 22.9 Total Mfg. /Loans & Advances 15.3 19.7 21.4 19.2 18.2 19.0 19.6 17.1 16.7 18.1 17.6 LA) / (B) (hi- - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - Finance Companies Food, Beverages & Tobacco 0.7 0.7 0.5 0.7 1.6 3.3 4.3 5.2 5.3 6.7 28.8 Textiles & Wearing Apparel 0.9 2.4 1.4 0.6 1.5 2.4 6.7 7.6 6.6 6.7 28.3 Wood & Wood Products 6.4 8.4 9.6 12.4 11.5 14.5 18.7 21.4 37.9 41.2 24.9 Printing & Publishing 3.2 3.5 3.1 2.7 3.6 5.7 8.8 11.9 15.5 16.7 21.8 Metal Prod., Machinery & Trans. Equip. 3,9 8.6 12.4 10.7 7.6 9.8 12.0 13.4 10.8 18.0 13.6 Other Manufacturing 0,5 3.6 3.6 3.1 4.9 15.0 23.5 35.1 41.2 41.5 73.6 Total Manufacturing 15.6 27.2 30.6 30.2 30.7 50.7 74.0 94.6 117.3 130.8 28.7 Totl Loana 263,0 348.6 431.9 615.5 740.6 919.5 1,176.0 1,513.9 1,971.9 2,449.4 28.6 Total Mfg./Total Loans (7) 5.9 7.8 7.1 4.9 4.1 5.5 6.3 6.2 5.9 5.3 Source: Ouarterlv Economic Bulletin.December 1979 (Bank Negara Malaysia) -58- MALAYSIA Table 5.2 LOANS APPROVED FOR MAJOR INDUSTRIAL GROUPS, TOTAL LOANS APPROVED POR NEW/EXPANSION PROJECTS AND LOANS DISBURSED BY MIDY. 1968/69 - 1978/79 Gross c-mulative at March 31 Industrial group 1968/69 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1966 1971 1976 1979 Food, beverages & tobacco 2.9 2.3 11.9 6.8 5.6 13.4 17.0 10.1 7.6 8.7 23.3 6.4 26.7 79.6 119.2 Taxtile 6 clothing 6.6 3.5 11.8 8.0 17.4 22.2 7.1 7.5 1.1 1.1 7.4 6.9 31.4 93.6 103.2 Leather products 0.2 0.3 0.1 - - - 0.4 - 0.2 - 0.1 0.5 1.3 1.7 2.1 Wood 6 wnod products 4.5 14.1 10.8 20.8 3.3 15.3 8.6 0.7 5.5 5.3 8.4 4.7 41.3 90.0 109.3 Paper & printing 0.5 1.5 1.7 4.1 3.9 3.7 4.1 6.2 3.0 3.9 2.4 1.6 5.6 27.5 36.8 Chemical products - 4.7 3.7 10.0 1.4 10.4 4.9 11.1 1.0 1.7 2.1 3.7 12.2 50.0 54.8 Rubber products 1.1 0.8 1.0 0.7 2.0 10.2 2.0 8.2 0.7 0.5 7.8 7.6 11.4 34.8 43.9 Plastic products 2.1 2.2 6.4 2.6 2.2 7.4 2.8 2.1 1.4 4.3 2.8 1.4 12.4 29.6 38.1 Nonmetallic mineral producta 1.4 2.1 4.1 8.4 4.4 3.3 7.2 0.7 1.0 5.6 7.7 11.4 19.1 43.1 57.4 Metal 6 engineering 2.9 15.3 6.2 10.7 8.8 15.1 13.6 7.7 8.7 7.0 9.7 8.7 38.5 94.4 119.8 Miscellaneous manufacturing 0.2 0.3 0.4 0.7 0.8 0.8 6.6 0.5 - 0.3 0.2 0.4 1.4 10.5 11.0 Manufacturing sector loans approved: Amount 22.4 47.1 58.1 72.8 49.8 101.8 74.3 54.8 30.3 38.5 71.9 53.3 201.3 554.8 695.6 Number 83 98 133 204 235 262 220 139 123 184 208 114 505 1,565 2.080 MlDF'e loans approved: Amount 27.2 49.2 67.1 78.8 61.3 112.9 98.6 64.2 31.7 39.3 73.0 56.0 221.5 627.3 781.3 Number 85 101 141 224 256 277 236 147 131 199 219 126 532 1,681 2,230 HIDF's loans approved for new projects: Amount 18.1 37.4 37.4 57.0 35.6 59.9 44.5 37.1 11.9 11.8 26.8 NMmber 27 42 59 82 81 82 65 47 36 45 55 MIDF's loans approved for expansion projects: Amount 9.1 11.8 29.7 21.8 25.7 53.0 54.1 27.1 19.8 27.5 46.2 Number 58 59 ,82 142 175 195 171 100 95 154 164 Loans disbursed: Amount 15.2 24.1 37.2 66.3 44.2 39.7 72.0 53.3 48.6 35.1 40.0 Manufacturing sector loans approved: Gross cumulative amount 96.2 143.3 201.4 274.2 324.0 425.8 500.1 554.9 585.2 623.7 695.6 Gross cumulative number 274 372 505 709 944 1.206 1.426 1.565 1.688 1.872 2.080 Source: Unpublished statements. MIDF. -59- ANNEX Table 5.3 MALAYSIA SIZE DISTRIBUTION OF LOANS APPROVED BY MIDF, 1971/71 - 1978/79 Gross cumulative Size Number of loans Amount of loans (%) March March March March March March 1971 1974 1979 1971 1974 1979 Up to 50,000 180 511 865 2.4 3.0 3.2 50,001 to 100,000 86 192 349 3.1 3.3 3.6 100,001 to 150,000 67 158 268 4.1 4.5 4.6 150,001 to 250,000 38 114 244 3.6 5.1 6.7 250,001 to 500,000 58 116 179 10.0 9.3 8.9 500,001 to 1,000,000 49 92 146 17.1 14.7 14.2 1,000,001 to 2,000,000 29 62 97 21.2 20.7 19.6 2,000,001 to 3,000,000 17 34 46 19.6 19.0 15.4 Above 3,000,000 8 19 36 18.9 20.4 23.8 Total 532 1,298 2,230 100.0 100.0 100.0 (Amount in M$ mln) 221.5 474.5 781.3 Loans approved in a year Size Number of loans Amount of loans (%) 1970/71 1975/76 1978/79 1970/71 1975/76 1978/79 Up to 50,000 45 59 63 2.0 2.8 2.6 50,001 to 100,000 19 21 50 2.3 2.6 5.4 100,001 to 150,000 21 17 24 4.3 3.5 4.4 150,001 to 250,000 10 19 29 3.3 6.3 8.7 250,001 to 500,000 14 12 20 8.0 8.4 10.9 500,001 to 1,000,000 16 7 17 17.6 7.1 16.8 1,000,001 to 2,000,000 8 3 11 20.2 8.5 24.5 2,000,001 to 3,000,000 6 1 3 23.2 4.4 11.2 Above 3,000,000 2 8 2 19.1 56.4 15.5 Total 141 147 219 100.0 100.0 100.0 (Amount in M$ mln) 67.1 64.2 73.0 Source: Unpublished statements, MIDF. -60- Annex Table 6.1: WEST MALAYSIA: EXPORT OF WOOD PRODUCTS (M$ million) 1971 1972 1973 1974 1975 1976 1977 Logs 642.0 594.1 986.4 1,068.0 685.3 1,450.2 1,559.4 Sawn timber 197.7 277.9 559.7 502.4 441.9 884.8 841.0 Veneer 13.5 13.4 22.8 31.5 16.7 22.5 30.1 Plywood 58.3 83.8 156.5 103.1 90.3 185.6 162.1 Chipwood 15.3 26.2 31.8 33.6 33.3 38.8 24.7 Mouldings 11.3 21.1 31.5 38.6 30.1 49.9 57.0 Others 18.3 21.5 25.7 37.9 26.7 32.3 37.1 Total 956.8 1,038.0 1,814.4 1,815.1 1,324.0 2,664.1 2,711.4 Total manufacturing exports /a 2,003.7 1,673.5 2,178.6 2,379.0 Total Malaysian exports 8,437.5 7,695.8 10,042.7 11,230.9 /a Excluding logs. Source: Bank Negara and Department of Statistics. -61- Annex Table 6.2: WEST MALAYSIA: PRODUCTION INDEXES OF LIGHT INDUSTRY SUBSECTORS Wood Crude Rubber Food Electrical & Textiles & Year processing rubber /a products /a processing electronic garments 1968 100.0 100.0 100.0 100.0 100.0 100.0 1969 107.7 n.a. n.a. 108.7 128.6 n.a. 1970 125.5 n.a. n.a. 115.9 171.5 n.a. 1971 140.4 n.a. n.a. 111.9 188.9 n.a. 1972 183.7 n.a. n.a. 115.4 192.4 n.a. 1973 203.3 142.4 166.5 130.3 200.6 n.a. 1974 185.9 140.8 161.7 128.5 247.0 141.0 1975 190.2 134.3 164.1 136.2 287.0 213.9 1976 265.2 149.4 185.1 156.5 338.4 302.5 1977 286.4 146.6 196.0 162.0 432.4 313.9 1978 274.5 146.0 191.8 170.7 476.2 366.8 /a Figures relate to Malaysia as a whole. Source: Department of Statistics, Bank Negara and MIDA. -62- Annex Table 6.3: WEST MALAYSIA: PRODUCTION AND EXPORTS OF LOGS AND SAWN TIMBER ('000 cubic meters) Exports as Production Exports a % of total Year Logs Logs Sawn timber Total log production 1974 8,608 583.8 1,571.1 2,154.9 25.0 1975 7,534 418.3 1,490.6 1,908.9 25.3 1976 10,003 368.6 2,643.7 3,030.3 30.3 1977 10,476 240.4 2,584.3 2,824.7 27.0 1978 9,551 155.9 2,527.7 2,683.6 28.1 1979 /a 8,787 186.4 2,860.1 3,046.5 34.7 /a Mission estimate. Source: MIDA, Forestry Department and Department of Statistics. -63- Annex Table 6.4: WEST MALAYSIA: ESTIMATED AREA UNDER CULTIVATION ('000 hectares) Rubber + Other Year Total oil palm crops Percent (A) (B) (A/B) 1967 2,678 1,913 765 28.6 1968 2,752 1,924 828 30.1 1969 2,842 1,961 881 31.0 1970 2,877 1,985 892 31.0 1971 2,922 2,012 910 31.1 1972 3,000 2,051 949 31.6 1973 3,076 2,106 970 31.5 1974 3,178 2,192 986 31.0 1975 3,278 2,264 1,014 30.9 1976 3,359 2,339 1,020 30.4 1977 3,442 2,421 1,021 29.7 Source: Department of Statistics. -64- Annex Table 6.5: WEST MALAYSIA: AGRICULTURAL PRODUCTION OF MAJOR CROPS ('000 tons) 1974 1975 1976 1977 1978 Rubber 1,460.5 1,398.3 1,536.3 1,536.8 1,530.1 Rice 1,182.6 1,116.2 1,135.6 1,060.0 944.8 Palm oil 942.3 1,136.8 1,260.6 1,486.6 1,640.0 Palm kernel 194.7 232.8 256.0 310.6 339.8 Tea (tons) 3.2 3.1 3.2 3.2 3.0 Pineapples 245.3 199.3 194.4 191.8 190.3 Tobacco 7.6 9.2 4.7 7.3 9.3 Copra 119.5 140.0 126.0 114.7 93.6 Source: Department of Statistics and Ministry of Finance. -65- Annex Table 6.6: WEST MALAYSIA: EXPORTS OF RUBBER AND RUBBER PRODUCTS (M$ million) Rubber Year Rubber products Total (A + B) as % of (A) (B) (A) + (B) total exports 1973 2,507.2 36.2 2,543.4 34.4 1974 2,887.7 52.0 2,939.7 29.0 1975 2,025.5 62.3 2,087.8 22.7 1976 3,097.8 74.1 3,153.5 23.5 1977 3,379.4 87.0 3,466.4 23.2 1978 3,601.1 95.6 3,696.7 21.7 Source: Department of Statistics, Bank Negara and MIDA. -66- Annex Table 6.7: WEST MALAYSIA: PRODUCTIVITY OF WORKERS IN TYRE MANUFACTURING Average wage Productivity Country (US$/worker/hour) (Kg/worker/hour) Malaysia 0.99 14.1 Thailand 0.91 22.1 Philippines 0.78 16.5 Morocco 1.22 15.4 Taiwan 0.94 12.0 Indonesia 0.58 16.6 India 0.54 12.0 South Africa 1.77 16.1 Australia 6.37 30.0 Source: Goodyear Tire and Rubber Co. -67- Annex Tablee 6.8: WEST MALAYSIA: SUPPLY OF OIL PALM FRESH FRUIT BUNCHES (FFB) AND CAPACITY OF MILLS State FFB supply Installed capacity /a ('000 tons) ('000 tons) Pahang 2,953 3,220 Johore 3,336 4,610 Selangor 1,442 2,850 Perak 1,102 2,280 Trengganau 717 780 Negri Sembilan 498 900 Kelantan 177 270 Melaka 109 70 Kedah and Perlis 105 90 Pinang 54 490 Total 10,493 15,560 /a Based on two shifts. Source: MIDF. -68- Annex Table 6.9: SCOPE OF THE ELECTRICAL AND ELECTRONICS INDUSTRIES ISIC cate- gory /a Products and processes 38310 Manufacture of electrical industrial machinery and apparatus (electric motors, generating sets and alternators, distribution transformers, electrical welding apparatus, electric motor star- ters and air-brake contactors, switchgear and industrial swit- ches, switchboards, control panels, control centers, control con- soles and others). 38320 Electronic appliances, telecommunications equipment and electro- nic components (television receivers, audio equipment, grammo- phone records, magnetic recording tapes, electronic calculators and watches, telecommunications equipment, semiconductor devices, integrated circuits, transistors, silicon wafers or devices, resistors, capacitors, transformers and coils and other electro- nic appliances and components). 38330 Electrical appliances and houseware (rice cookers, fans, kettles, irons, ovens, washing machines, water heaters and others). 38391 Cables and wire. 38392 Dry cells and storage batteries. 38393 Electric lamps and tubes. 38399 Miscellaneous electrical apparatus and supplies (fittings, plugs and sockets, switches, lampholders, fuse links, etc.). /a In accordance with the Malaysian Industrial Classification. -69- Annex Table 6.10: MALAYSIA: MAIN INDICATORS OF THE ELECTRICAL AND ELECTRONICS INDUSTRIES Establish- Salaries Year ments Output Employees and wages Exports (no.) (M$ mln) (no.) (M$ mln) (M$ mln) 1970 41 91.6 3,208 8.5 n.a. 1971 64 110.8 3,794 10.4 n.a. 1972 76 178.1 7,873 15.2 n.a. 1973 83 299.1 22,562 29.2 27 1974 107 614.7 26,672 61.0 200 1975 122 713.9 30,098 74.8 304 1976 138 1,106.3 46,559 119.6 521 1977 168 1,421.5 49,518 155.2 829 1978 /a 200 1,887.8 60,000 192.0 1,700 /a Mission estimates (except for exports) n.a. = not available. Source: Department of Statistics and MIDA. Annex Table 6.11: MALAYSIA: STRUCTURE OF THE ELECTRIC AND ELECTRONICS INDUSTRIES (1977) Establish- Salaries ISIC ments Output Employees and wages (no.) (M$ mln) (no.) (M$ mln) 38310 33 28.3 1,293 5.7 38320 73 1,226.6 43,645 131.0 38330 6 7.6 422 1.1 38391, 38393, 38399 43 103.6 3,013 11.5 38392 13 55.5 1,145 5.9 Total 168 1,421.5 49,518 155.2 Source: Department of Statistics and MIDA. -70- Annex Table 6.12: WEST MALAYSIA: GROWTH OF OUTPUT OF TEXTILE AND GARMENTS INDUSTRIES Year Index Gross value (M$ million) 1969 100.0 321.0 1974 141.0 452.6 1975 213.9 686.6 1976 302.5 971.0 1977 313.9 1,007.6 1978 366.8 1,177.4 Source: Department of Statistics. Annex Table 6.13: WEST MALAYSIA: PRODUCTION OF YARN AND CLOTH Yarn Cloth Year Production Sales Production Sales (tons) (M$ million) (Kms) (M$ million) 1974 8,751 6.7 80,022 77.0 1975 10,647 9.2 124,534 120.7 1976 17,447 13.5 174,608 164.5 1977 18,141 14.9 189,334 154.9 1978 18,750 15.4 207,646 198.8 1979 /a 19,000 14.4 221,180 207.3 /a Estimated on the basis of performance during the first five months. Source: Department of Statistics. -71- Annex Table 6.14: WEST MALAYSIA: EMPLOYMENT IN TEXTILE INDUSTRIES (Number) Year Spinning and weaving Wearing apparel Total 1970 7,880 4,950 12,830 1971 10,120 6,336 16,456 1972 15,354 7,688 23,042 1973 18,540 9,051 27,591 1974 21,719 10,588 32,307 1975 n.a. n.a. 38,752 1976 n.a. n.a. 43,284 1977 n.a. n.a. 48,346 1978 n.a. n.a. 54,000 1979 n.a. n.a. 60,315 Source: Department of Statistics. Annex Table 6.15: WEST MALAYSIA: EXPORTS OF TEXTILE PRODUCTS (M$ million) Year Textiles Garments Total 1971 24.3 27.5 51.8 1972 41.3 46.2 87.5 1973 62.1 66.3 128.4 1974 82.1 83.4 165.5 1975 85.3 119.7 205.0 1976 138.0 168.3 306.3 1977 144.8 176.4 321.2 1978 196.2 255.7 451.9 Source: Department of Statistics. -72- Annex Table 6.16: WEST MALAYSIA: PRODUCTION OF FRESH PINEAPPLE AND PINEAPPLE PRODUCTS Year Fresh pineapple Canned pineapple Pineapple juice ('000 tons) ('000 tons) (M$ mln) ('000 tons) (M$ mln) 1974 245.3 54.6 55.8 1.8 1.1 1975 199.3 45.0 50.5 0.7 0.7 1976 194.4 46.9 58.4 1.4 1.2 1977 191.8 47.5 61.7 1.9 1.7 1978 190.3 50.4 59.5 2.1 1.7 Source: Department of Statistics. Annex Table 6.17: MALAYSIA: EXPORTS OF PINEAPPLE PRODUCTS Year Value Percent of total (M$ million) Malaysian exports 1973 38.7 0.52 1974 50.9 0.50 1975 51.5 0.56 1976 62.4 0.47 1977 65.2 0.44 1978 64.6 0.38 Source: Department of Statistics and Bank Negara. -73- Annex Table 6.18: WEST MALAYSIA: PRODUCTION OF OIL PALM Year Total area Crude oil Yield ('000 ha) ('000 tons) (tons/ha) 1971 284.7 588.9 2.07 1972 337.3 726.3 2.15 1973 398.6 810.1 2.03 1974 485.2 1,041.4 2.15 1975 551.8 1,257.3- 2.28 1976 619.1 1,389.7 2.24 1977 680.6 1,611.5 2.37 1978 724.0 1,780.4 2.46 1979 la 758.2 1,850.0 2.44 /a Estimate (Ministry of Finance). Source: Department of Statistics, MIDF and Ministry of Finance. Annex Table 6.19: MALAYSIA: EXPORTS OF PALM OIL Year Export volume Export value Percent of total Unit price ('000 tons) (M$ million) Malaysian exports (M$/ton) 1971 573.4 380.4 7.6 663.5 1972 697.1 362.7 7.5 520.3 1973 797.8 466.5 6.3 584.7 1974 901.2 1,085.6 10.7 1,204.5 1975 1,162.8 1,317.5 14.3 1,133.0 1976 1,345.7 1,220.2 9.1 906.8 1977 1,424.3 1,790.0 12.0 1,256.8 1978 1,519.1 1,871.8 11.0 1,232.1 Source: Department of Statistics, Bank Negara and Ministry of Finance. -74- Annex Table 7..1 Number of Applications to Tariff Unit, 1970-78 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 (a) Tariff protection 79 88 86 39 47 29 36 45 23 21 (b) Import Restriction/Quota 52 43 57 40 26 23 29 16 13 8 (c) Exemption from: (i) Import Duty 536 631 773 867 804 812 1,069 1,217 1,335 1,3I 6 (ii) Surtax 4 483 223 162 165 129 266 263 278 359 (iii) Excise 2 5 3 5 1 3 (iv) lxport Duty - - - - - - - - _ 2 1/ (d) Drawback-of: (i) Import Duty 20 12 9 6 3 4 2 1 3 1 (ii) Surtax 3 1 2 1 1 1 (iii) Excise - - - - - (e) Refund of: (i) Import Duty 25 5 5 7 4 1 4 4 10 (ii) Surtax 25 5 - 1 97 (iii) Excise - 1 1 - (f) Miscellaneoua 105 119 54 40 28 12 54 76 71 (g) Reviews 17 10 15 Total cases 793 1,418 1,280 1,178 1,099 1,031 1,415 1,617 1,742 1,876 1/ Applications here refer to only rcquests for inclusion of additional items in the Third Schedule, Customs ReguLatiors. Source: UNDP, Tariff Reform-Malaysia: Project Findings and Recommendations, 1975, p. 28, and FIDA, Annual Reperts, 1975-1978 1979 Data from MIDA. -75- Annex Table 7.2 Average of Sectoral Nominal Tariff Rates in Malaysia, 1963-1977 All Indu'stries Manufacturing Industries Year Estimate A Estimate B Estimate A Estimate B (M) (M) (%) (M) 1963 3 11 1965 3 13 1969 21.9 24.8 (21.2) 1973 29.4 34.1 (24.9) 1975 28.3 25.2 33.9 29.4 (17.3) (14.2) 1977 28.6 25.8 34.4 31.4 (19.0) (15.8) Note: Estimate A = Simple average of the sectoral unweighted average tariff rates. Estimate B = Simple average of the sectoral weighted average tariff rates. Figures in the parentheses refer to the average tariff rates excluding the beverage and tabacco industries. Data for 1963 and 1965 are average nominal protection rates which might underestimate the average nominal tariff rates. Source: 1963 and 1965: J.H. Power, "The Structure of Protection in West Malaysia,' 1969: Annex Table 7.3 in B. Balassa (ed.), The Structure of Protection 1973: Annex Table 7.4 in Developing Countries, 1971. 1975: Annex (4% surtax rates were added to the estimated Table 7.5 average duty rates) 1977: Annex (4% surtax rates were added to the estimated Table 7.6 average duty rates) -76- Annex Table 7.3 Nominal Tariff Rate in West Malaysia, 1969 1/ 1-0 Sector Nominal Tariff Rate- No. (1365) Industry Groups (%) 1 Agriculture and livestock 32.6 2 Rubber planting - 3. Forestry - 4 Fishing 20.0 5 Mining 6.2 6 Food industries 27.3 7 Beverages 20.3 8 Tobacco 38.2 9 Textiles 22.0 10 Clothing and footwear 26.4 11 Wood and cork 18.6 12 Furniture and fixtures 30.4 13 Paper and paper products 17.4 14 Printing and publishing 19.4 15 Leather and leather products 25.0 16 Rubber processing 28.1 17 Rubber products 28.1 18 Chemical products 34.0 19 Products of petroleum and coal 20.0 20 Non-metallic mineral products 18.3 21 Basic metal industries 21.0 22 Metal products and machinery 24.0 23 Misc. manufactu ing industries 27.2 All industries 2 3/ 21.9 Manufacturing industries- 24.8 1/ Simple averages. 2/ Simple average of the sectoral averages. 3/ Simple average of the sectoral averages excluding the agriculture livestock, rubber planting, forestry, fishing, and mining industries; figures in the parenthesis refer to the average excluding the beverages and tocacco industries. Source: ECAFE, "E'fective Protection and Intraregional Trade: A Case Study of Malaysia," November 1971 (mimeographed). -77- Annex Table 7.4 Nominal Tariff Rate in West Malaysia, 1973 1-0 Sector Nominal Tariff Code (1970) Industry Gtoups ... _t_ C%) 111-118 Agriculture 8 120 Forestry and logging 13 130 Fishing 4 213, 214 Metal mining 2 Primary industries 7 311-322d Food 17 316 Grain mills 4 323 Animal feed 2 325, 326 Beverages 152 329 Tobacco products 146 Food industries 36 331-333 Textiles 28 334 Wearing apparel, except footwear 34 335 Leather and leather products 24 336 Footwear 42 341, 343 Wood products 20 344 Furniture 35 345 Paper and Paper products 7 346 Printing and publishing 4 351 Industrial chemicals 11 352-355 Chemical products 37 356 Products of petroleum and coal 81 357,358 Rubber and robber products 32 359 Plastic products n.c.c. 35 361 Glass products 41 362-364 NM mineral products 16 371 Iron and steel 12 372 NM basic products 15 373-375 Metal products 15 381-382 tachinery 11 383-385 Electrical machinery 25 386-389 Transport equipment 43 391 Other manufactures 12 All industriesl/ 29.4 Manufacturing industries2/ 34.1 (24.9) 1/ Simple average of the weighted average sectoral tariffs. 2/ Simple average of the weighted average sectoral tariffs excluding the agriculture, forestry and logging, fishing, metal mining, primary industries, and food industries; Figures in the parenthesis refer to the average excluding the beverages and tobacco industries. Source: Kurt Rabenau, "Trade Policies and Industrialization in Developing Countries: The Case of West Malaysia," June 1975, Universitat Ragensburg (mimeographed). -78- Annex Table 7.5 The Average Import Duty by industries as at 31st December, 1975 Classification Chapters Average Import Weighted Import Duty Duty (1) FOOD AND FOOD PRODUCTS a. Live animals 1 5 = 0.42% 19150526 x 100 = 0.04% b. Animal products edible 2,3,4,5 167.02 = 1.76% 4736760 x 100 95 280509681 = 1.7% c. Vegetable pro- 7,8,9,10,11 1714 ducts, edible 12 157 = 11% 28514408 x 10% 286886897 d. Animal and veg- 15 142.03 - 3.02% 696696.84 x 100 atable fats 47 29011425 and oils = 2.4% e. Prepared food- 16, 17,18, 2302.21 - 17% 97012249 x 100 stuffs 19,20,21, 136 419470672 23 = 23% f. Others 6,13,14 48.7 - 1.6% 145385.5 x 100 31 8533053 1.7% (2) BEVERAGES AND TOBACCO a. Beverages 22 4191.07 - 139.7% 38025681 x 10 30 40846878 = 93% b. Tobacco 24 2360 236% 105867000 x 100 10 42962181 = 246% (3) MINERAL PRODUCTS 25,26,27 1269.51 - 10.4% 131740663 x 100 122 529147000 = 24.8% (4) PRODUCTS OF THE 28,29,30, 5420.45 31406785.5 x 100 CHEMICALS AND 31,32,33, 453 541715446 ALLIED INDUS- 34,35,36, TRIES 37,38 - 11.97% = 5.8% - 79 - Annex Table 7.5 CLASSIFICATION CHAPTERS AVERAGE IMPORT WEIGHTED IMPORT DUTY DUTY 5. Plastic Products 39 1619.519 8430324.4 x 80 2%1158092.35 xO = 7.3% 6. Rubber Products 40 836 , 9.5% 6454385.7 x 100 88 ~~~~~79307707x10 3 8.1% 7. Leather Products 41, 42, 43 975 17.73% 2989.5 100 55 11959409 = 25% 8. Wood and Wood 44, 45, 46 1772 157% 1787911.7 x 100 Products 113 26394054 = 6.78% 9. Paper, Printing 47, 48, 49 977 8.96% 10474710.65 x 100 and Publishing 109 213415733 = 5% 10. Textiles and 50, 51, 52, 12461.79 27.5% 83053558.63 Textiles 53, 54, 55, 454 2450539168 x 100 Products 56, 57, 58, - 18.4% 59, 60, 61, 62, 63 11. Non-Metallic 68, 69, 70 1506.5 10080483.26 Products 88 - 17.12% 86889720 x 100 12% 12. Basic Metal 73, 74, 75, 2883.76 7.9% 31507399.92 100 Industries and 76, 77, 78, 366 668406002 x Articles of Base 79, 80, 81, =5% Metal 82, 83 13. Machinery 84 2609.05 42868224.4 Manufacturing 290 9 98565548 x 100 = 4.4% 14. Electrical and 85 2878 60099546.8 Electronic 214 = 13.45% 695374991 x 100 Products - 8.64% 15. Transport 86, 87, 88, 1849 , 16 7 47513645.01 Equipment 89 111 * 728065797 100 e 7% - 80 - Annex Table 7.5 Classification Chapters Average Import Weighted Import Duty Duty (16) SCIENTIFI EQUIPMENT 90,91,92 1620 = 12.86% 149469888.6 x 100 126 145046541 = 10% (17) ARMS AND AMMUNITION 93 NIL NIL (18) MISC. MANUFACTURED ARTICLES a. Footwear, headgear, 64,65,66,79 1234.5 24.7% 3217867.4 x 100 umbrellas, sunshades, 50 13951485 whips, riding-crops, prepared feathers, = 23.1% articicial flowers etc. b. Pearls, precious, 71, 72 186 = 6.4% 1534921.-2 x 100 semi-precious metals 29 18420947 and coin = 8.33% c. Misc. manufactured 94,95,96,97. 2245.6 - 16.6% 6622391.33 x 100 articles 98 135 41212519 d. Works of Art, collect-99 = 16% ors' piece and antiques 99 0 0 All Industries -/ 24.33% 21.24% Manufacturing Industries 2/ 29.94% 25.38% (13.32) (10.20) * The computation is based on import statistics and the prevailing duties as at 31st December, 1975. 1/ Simple average of the sectoral average duties. 2/ Simple average of the sectorage average duties excluding industry (1) a, b, c, d, f, and (3); Figures in the parentheses refer to the averages excluding duties on the beverage and tobacco industries. Sources: MIDA * The computation is based on import statistics and the prevailing duties as at 31st December 1975 - 81 - Annex Table 7.6 Average Import Duty by Industries as at December 31, 1977 Average Impor t Weighted Average Classification Chapters Duty (%) Import Duty (%) 1. Food and Food Beverages a. Live animals 1 0 0 b. Animal products edible 2, 3, 4, 5 1.80 1.75 c. Vegetable products edible 7, 8, 9, 10 15.60 6.40 11, 12 d. Animal and vegetable fats and oils 15 2.75 1.52 e. Prepared foodstuffs 16, 17, 18, 19, 15.32 19.12 20, 21, 23 f. Others 6, 13, 14 2.00 1.84 2. Beverages and Tobacco Beverages 22 224.40 133.00 Tobacco 24 129.00 218.50 3. Mineral Products 25, 26, 27 3.30 1.94 4. Products of the Chemicals 28, 29, 30, 31, and Allied Industries 32, 33, 34, 35, 9.19 4.99 36, 37, 38 5. Plastic Products 39 23.00 19.70 6. Rubber Products 40 9.80 6.02 7. Leather Products 41, 42, 43 20.60 30.00 8. Wood and Wood Products 44, 45, 46 15.54 15.70 9. Paper, Printing and 47, 48, 49 8.65 7.02 Publishing 10. Textiles and Textiles 50, 51, 52, 53, Products 54, 55, 56, 57, 25.10 14.90 58, 59, 60, 61, 62, 63 11. Non-Metalic Products 68, 69, 70 25.05 12.70 - 82 - Annex Table 7.6 Page 2 Average Import Weighted Average Classification Chapters Duty (%) Import Duty (%) 12. Basic Metal Industries 73, 74, 75, and Articles of Base Metal 76, 77, 78, 9.30 6.30 79, 80, 81, 82, 83 13. Machinery Manufacturing 84 10.50 7.80 14. Electrical and Electronic Products 85 19.10 9.40 15. Transport Equipment 86, 87, 88, 25.90 11.20 89 16. Scientific Equipment 90, 91, 92 10.60 9.50 17. Arms and Ammunition 93 9.09 4.76 18. Misc., Manufactured Articles a. Footwear, headgear, 64, 65, 66, umbrellas, sunshades 67 25.20 25.90 ships, riding-crops,! prepared fosthers, artificial flowers, etc. b. Pearls, precious semi- 71, 72 10.40 8.70 precious metals and coins c Misc. manufactured articles 94, 95, 96, 13.12 10.10 97, 98 d. Works of art, collectors' 99 nil nil pieces and antiques All Industries /1 24.60 21.81 Manufacturing Industries /2 30.40 27.40 (15.00) (11.80) /1 Simple average of the sectoral average duties. /2 Simple average of the sectoral average duties excluding industry (1) a, b, c, d, f, and (3); figures in the parentheses refer to the averages excluding duties on the beverage and tobacco industries. Source: MIDA -83- Annex Table 7.7 Previous Studies on Nominal Protection Rate (NPR) and Effective Protection Rate (EPR) (%) in the Manufacturing Industries (in Peninsula Malaysia): 1962-1973 Studies Data 1962 1963 1965 1966 1969 1970 1972 1973 Power 1963-65 I-0 NPR 8 9 table; ta- EPR 13 15 riff rate Edward 63/68 Cen- sus & 69/71 EPR-/ 15 45 45 55 survey; pri- (25) (50) (65) (70) ce compari- son Ariff 1970 survey; NPR 18 tariff rate EPR 44 Von 1970 I-0 NPR 25 Rabenau table; ta- EPR 39 riff rate Note: The EPRs are average(for all activities including domestic sales & exports except for Von Rabenau's estimate which is only for domestic sale). EPR is based on the Balassa method which treats non-traded inputs like traded inputs with zero nominal protection rate. a/ Figures in the brackets refer to EPR estimates excluding rubber processing off-estate industry. Source: J.H. Power, "The Structure of Protection in West Malaysia," in B. Balassa (ed.), The Structure of Protection in Developing Countries. Baltimore, Johns Hopkins Press, 1971, pp.220-222. C.B. Edwards, "Protection, Profits and Policy - An Analysis of Industrialization in Malaysia," University of East Anglia, 1975. K.A.M. Ariff, "Protection for Manufactures in Peninsular Malaysia," Hitosubashi Journal of Economics, Feb, 1975, p. 49. K. Von Rabenau, "Trade Policies and Industrialization in a Developing Country: The Case of West Malaysia," University of Requesburg, June 1975. -84- Annex Table 7.8 Import Duty and Surtax Exemptions for Intermediate Input Imports in the Manufacturing Industries-' (1973-1979) A. Eatis,ees B-sod on the Coth rrnmnt's AAProv--1 lnt-e,sedi.t. lnput Iport Inter-edi.te Input 1.sport for Domestic Use for Export loLel i-rption Yf-o (.) Doty (b) S-s't. (e) Doty (e) S-ortr (f) lluty (g) Otto Exepcion EssoEptiot ( 4) . (b) E..=ptioo Exe=ption (e) - (e) *oitOtor xrortiot (f) * (B) _____ _____ ___ _____ ____ ____ ____ _____ ____ _____ ____ ____ -(05 + (c)) ( b) ( ) _ _ _ _ _ _ _ 1975 $110.533I,E5.29 1976 $202.471,422.28 $ 61,363,539.08 263,840,961.36 1977 229,856,606.00 67,914,503.03 297,771,249.00 1978 5318,718.226 $ 53.461,067 $372,179,293 $ 73,108,379 $ 33,701,394 $108,809.773 393,826.605.00 87,162.461.00 480,989,066.00 '1979 246,674,371 66,250,325 312,924,696 73,580,291 24,713,731 98,294,022 320,254,662.00 90,964,056.00 411,218,718.00 B. A.tWol E s..ption.s fRport.d by thEe Cstoms OffIee 1973 48,074,744.45 26,285,2bl.65 74,360,026.10 1974 88.752,816.33 6?.958,51n.14 151.711.32b.47 1975 28,088,045.81 225,87.98i.02 53,976,033.t3 1976 47,224,426.73 42,956,065.19 90,180.491.92 1977 121,454,191.28 57,995,568.63 179,449.759.91 1978 95,639,685.99 62,582,337.07 158,242.023.06 Sooer: Mi.nistry of Fixenee. 1/ Two separate figures are available at the Ministry of Finance: (a) estimates based on the Government's approval; (b) actual exemptions reported by the Customs Office. The official in charge of the data indicated that the former data is more reliable than the latter due to some reporting errors incorporated in the latter. -85- Annex Table 7.9 Import Duty and Surtax Exemptions for Machinery Imports in the Manuracturing Industries (1973-1979) A. Estimates Based on the Government's Approval sa (a) D4ty Exemption (b) Surtax Exemption (a) + (b) (c) Sales Tax Exemption (a) + (b) + (c) 1973 $ 2,575,823.90 $ 7,016,440.82 $ 9,592,264.72 $ 8,537,341.15 $ 18,129,605.87 1974 2,306,065.63 8,156,880.90 10,462,946.53 10,638,466.79 21,101,413.32 1975 5,338,511.65 7,365,182.72 12,703,694.37 9,558,231.04 22,261,925.41 1976 3,769,122.05 9,274,330.16 13,043,452.21 11,956,413.40 24,999,865.61 1977 3,037,095.00 6,695,394.00 9,732,489.00 7,832,871.00 17,565,360.00 1978 20,598,977.00 16,205,898.00 36,804,875.00 17,643,425.00 54,448,300.00 1979 38,050,697.00 20,561,697.00 58,612,394.00 21,660,319.00 80,272,713.00 B. Actual Exemptions Reported by the Customs Office 1974 4,520,760.39 6,940,782.15 11,461,542.54 1975 3,716,437.70 3,383,774.39 7,100,212.09 1976 4,264,509.95 2,925,457.27 7,189,967.22 1977 5,324,188.45 5,215,423.29 10,539,611.94 1978 6,193,627.91 9,691,514.61 15,885,142.52 Source: Ministry of Finance. -86- Annex Table 7.10 Quota Amount of Import Restricted Items (Q and Nil): Frequency Distribution for 1968, 1974, and 1980 Number of Commodities (%) Quota Amount (a) Nov. 1968 (b) July 1974 (c) Feb. 1980 (% of Base ear Import) 0 6 (11) 23 (62) 1- 20 8 (15) 0 (0) 21 - 50 11 (21) 6 (16) 51 - 75 5 (9) 1 (3) 76 - 100 5 (9) 4 (11) 101 - 150 8 (15) 0 (0) (Flexible quota or Quota amount not known) (25) (10)(19) (3)(8) Total 25 53 (100) 37 (100) Source: 1968: ECAFE, Effective Protection and International Trade: A Case Study of Malaysia, Nov. 1971, pp. 19-20. 1974: K. Rabenau, Trade Policies and Industrialization in a Developing Country: The Case of West Malaysia, June 1975, Table Al. 1980: Annex 2.8 -87- Annex Table 7.11 Period of Imposing Import Restrictions (Q and Nil): Frequency Distribution for 1968, 1974 and 1980 Number of Commodities (%) Period of Imposition (a) Nov. 1968 (b) July 1974 (c) Feb. 1980 More than 0 year 25 53 (100) 37 (100) More than 2 years 37 (70) 33 (89) More than 4 years 26 (49) 29 (78) More than 6 years 11 (21) 13 (35) More than 10 years 1 (2) 3 (8) (Year not known) (25) (16) (2) Source: Same as Annex Table 7.10. - 69 - Annex Tabl& 7.12 Nominal and Export or Import Price Index (Relative to Malaysian Price Index)_ Adjusted Foreign Exchange Indices Measured in Terms of the Official Composite of Foreign Currencies per Ringgit 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 (a) Nominal exchange rate index a/ 93 93 95 102 105 100 103 102 99 103 (b) CPI b/ 70 71 74 82 96 100 103 108 113 117 (c) Export price index c/ 76 71 67 88 115 100 121 142 151 172 d/ (d) Import price index c/ 51 55 57 67 94 100 102 104 107 112 d/ (e) Price-adjusted exchange rate index for export 86 93 105 95 88 100 88 78 74 70 (= (a) ' | (b) c) (f) Price-adjusted exchange rate index for import 127 120 123 125 107 100 105 101 105 108 (= (a) (b) j) a/ Official composite of foreign currencies per Malaysian Ringgit; increase in index represents appreciation of Ringgit. Source: Bank of Negara Malaysia. b/ IMF, International Financial Statistics, 1970-1980. c/ Department of Statistics. d/ Jan-August Average. -70- Annex Table 7.13 Purchase-Power-Parity Adjusted Exchange Rate Index (1975 = 100) (Malaysian Ringgit per Composite of Foreign Currencies) 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1097 Purchasing-power parity adjusted exchange rate index for export 93.9 90.4 93.0 95.7 97.4 98.5 96.0 91.9 90.9 100.0 100.3 103.8 104.8 102.2 Purchasing-power parity adjusted exchange rate index for import 94.9 90.4 92.7 96.0 98.2 100.3 97.8 93.0 90.6 100.0 100.4 105.6 107.6 104.7 1/ Manufacturing output price indices of the major trade partners (relative to Malaysian) and trade shares of them were used to compute purchasing-power-parity-adjusted exchange rate index based on the nominal exchange rates for the major trade partners. Note that increase in index represents depreciation of Ringgit unlike the exchange rate index in Table 2.12. Source: Annex Table 7.14. -90- Annex Table 7.14 Computation of Purchasine-Power-Paritv Adlusted ExchanRe Rate Index (Malaysian Ringgit per unit of Composit Foreign Currencies) 1966-1979) 1966 1967 1968 1969 1970 1971 1972 1973 _ 1974 1975 1976 1977 1978 1979 Japan PPPI 0.93 0.90 0.91 0.93 0.96 0.93 0.91 0.94 1.02 1.00 1.02 0.99 0.92 0.97 RER 0.79 0.77 0.78 0.80 0.83 0.86 0.85 0.83 0.79 0.85 0.89 0.97 1.04 0.89 RlRI 92.94 90.58 91.76 94.12 97.65 101.18 100.00 97.65 92.94 100.00 104.71 114.12 122.35 104.71 Singapore PPPI 0.87 0.86 0.88 0.88 0.87 0.87 0.85 0.98 1.01 1.00 0.95 0.94 0.94 0.94 RER 87.00 86.00 88.00 88.00 87.00 87.00 85.00 96.60 100,90 104.00 98.10 98.19 95.86 94.19 RE4lI 83.65 82.69 84.62 84.62 83.65 83.65 81.73 92.88 97.02 100.00 94.33 94.41 92.17 90.57 U.S. PPPI 0.85 0.83 0.87 0.90 0.91 0.93 0.93 0.89 0.94 1.00 1.03 1.06 1.08 1.18 RER 2.62 2.55 2.68 2.78 2.80 2.70 2.61 2.18 2.17 2.59 2.62 2.50 2.39 2.58 RERI 101.16 98.46 103.48 107.34 108.11 104.25 100.77 84.17 83.78 100.00 101.16 96.53 92.28 99.61 U.K. PPPT 0.69 0.67 0.71 0.74 0.77 0.82 0.84 0.82 0.85 1.00 1.14 1.31 1.35 1.47 RER 5.93 4.95 5.21 5.49 5.67 6.07 5.54 4.67 4.62 5.24 4.92 5.93 6.06 6.75 RERI 113.17 94.47 99.43 104.77 108.21 115.84 105.73 89.12 88.17 100.00 93.89 113.17 115.6) 1281? Australia PPPI 0.93 0.91 0.91 1.00 1.08 1.14 1.18 1.30 RER 3.32 3.30 2.79 3.29 2.97 3.08 3.00 3.15 RERI 100.91 100.30 84.80 100.00 90.27 93.62 91.19 95.74 Germany PPPI 1.07 1.01 0.99 1.00 1.04 1.08 1.07 1.02 1.00 1.00 1.01 0.99 0.96 0.97 RER 82.87 77.54 75.30 82.87 87.26 94.62 93.69 92.35 96.57 98.81 108.67 114.05 116.13 117.56 RERI 83.87 78.47 76.21 83.87 88.31 95.76 94.82 93.66 97.73 100.00 109.98 115.42 117.53 118.98 RERI for Export 93.94 90.40 92.95 95.71 97.40 98.49 95.96 91.87 90.94 100.00 100.27 103.84 104.82 102.22 RERI for Import 94.87 90.41 92.70 95.95 98.21 100.33 97.76 92.96 90.61 100.00 100.39 105.62 107.56 104.66 Pi Note: PPPI -Prchasing-power-parity index - ?Ralasia - where i - couitry RER - Real excha,.ge rate - purchasing-power-parity adjusted exchange rate - Nominal exchange rate (in Aniex 3.12) x PPPI RERI Real exchange rate index (1975 - 100) RERI for Export - (W Exp )(RERi), where WEExp - share of export to i in Malaysian export. RERI for Import - E(W np )(RERi), where W,,pi - share of import from i in Malaysian import. 4Inp Data: P1 for Japan: WPI for industrial products for Singapore: CPI for U.S.,: WPI industrial products for U.K. for Australia: Manu-facturing output price index for Germany: WPI for industrial products for Malaysia: CPI CPI is used, only if a consistent producer's price index is not available, (Source: IMF, International Financial Statistics, 1966-1980, and UN Statistical Yearbook, 1977 and Monthly Bulletin of Statistics, March, 1980. WE a nd WI are from Ministry of Finance, Economic Report, 1979/80. xpi ePi Table 3.1 and Bank Negara, Quarterly Economic Bulletin, Sept. 1979, pp. 75-76. -91- Annex Table 7.15 Estimates of Trade Bias Measure (TBM) in the Manufacturing Industries in the Early '70s Estimate Year TB a) (a) Ariff 1970 91.3% a/ (b) EPU 1973 76.9 b (c) Von Rabenau 1973 83.0 c/ a/ TB.M = Ariff's average "Bias against Exporting" x average CEPRE + 3 - Average i J x CAverage EPRE by Von Ranenau + = 163 x [-44 + g = 91.3 b/ This estimate might under estimate the true bias against exports to the extent of the tariff exemptions for the export industries assu=ed in the computation were not realized. c/ TBM = EPRis - EPREX = 39 - [-44] = 83. Note: EPREX = effective protection rate for export EPRIS = " " import substitution DVA = domestic value added for import substitution DVA X = " " export Source: Ariff and Von Rabenau - same as Annex Table 7.7. EPU, Effective Protection and Industrialization Policies, April 1975. -92- Annex Table 7.16 Estimation of Tariff Exemption Rate (1978): Non-FTZ & LM'W Export vs Domestic Use (unit: M$ million) For Export (a) (b) (c) (d) For Total For FTZ For LMW For Non-FTZ For Domestic Export Export Export & LMW Export Market (i Manufactured, 3,9.1' l8 3i 3O.O- l I948/ (ood export33399.1-/ 1,385.3-/ 100.0-1 1,913.8-/ good export (ii) Intermediate good import for 5/ 6/ 7/89/ manufacturing 2,340.5- 1,290.6- 93. 956.98/ 1,428.5-9 (iii) Tariff exemption for 108.81°/ 0.0 0.0 108.8 372.211/ intermediate good import (iv) Tariff exemption rate 11.4% 26.0% ((iii) x 100' 1/ Bank Negara Malaysia; gross export of manufactured goods in Peninsular Malaysia excluding palm oil and other oil products. 2/ Department of Statistics 3/ Mission estimate. 4/ (a) - (b) - (c). 5/ (b) + (c) + (d). 6/ Department of Statistics 7/ Mission estimate based on the import-export ratio (0.93) of the FTZ exports (Department of Statistics) 8/ Computed by applying 0.5, w hich is the overall import coefficient of Malaysian export industries approximated by L. Hoffman's survey of Malaysian export industries (L. Hoffman, Interim Report on Methodology and Results of the Hex, Nov. 1974). 9/ Total intermediate good import for manufacturing - (a) = 3,769 - 2,340.5, Bank Negara, Annual Report and Statement of Accounts, 1978, p. 135. 10/ Annex Table 7.8 11/ Annex Table 7.8. -93- Antiex Table 7.17 Estimation of Benefits from Export Allowance vs. Tariff Exemption on Imported Inputs for Non-FTZ &LMW Manufactured Good Experts in 1978 (M$ million) Revised (1980) Previous Export Allowance Export Allowance (i) 5% of (b) if (ii) 8% of (b)i* local content I local content (i) 2% of (a) + (ii) 10% of (b) less than 50% OR more than 50% (a) Export value (1978) 3,399.1 (b) Increase in Export (1977 - 1978) > 941.0 (c) Incone Tax Base to be deducted poten- 941.0 x 0.05 941L0 x 0.08 £3,399.1 x 0.021+[941.0 x 0.1] tially Vdue to ex- - 47.05 - 75.28 a 67.98 + 94*1 port allowance = 162.08 (d) Income Tax Payment to be dedusted po- 47.05 x 0.4 75.28 x 0.4 162.08 x 0.4 tentiallya! due to 18.82 - 30.11 - 64.8 (c) = (c) x 0.4 (e) (d) allocated to 18.82 x 0.56 30.1 x 0.5i 64.8 x D.56 non-FTZ&LMW exports- = 10.54 16.86 - 36.29 (f) Tariff Payment Not Exempted for non- FTZ67UXW Exporters (which should be ex- empted to achieve a free trade reWime) 140.0 bi (g) Percentage of (f) to be compensated 10.54 + 140.0 16.86 + 140.0 36.29 + 140.0 through (e) - 17.5 m 12.0 - 25.9 C (e) - (f) (b) TER - after ad- justing for (g) 12.4% 13.1% 15.1% aJ Dedtctior. is only potential i.e., upper bound, since if an inccme tax tase is less than a potential deduction, the full potential deduction cannot be realized. For example, if the profit of a firm is negative, then nothing can be gained through Export Allowance. b/ Tariff Payment - Exemption = 956.9 x 0.26 - 108.8 - 140.0 (from Annex Table 7.16) c/ Based on 1978 share of Non-FTZ&LMW exports (56%) from Annex Table 7.L6 d/ (TER in Annex Table 7.16) + [(d) + (intermediate good import for Non-FTZ&LMW exports)] -94- Annex Table 7.18 Size (Gross Sale) Distribution of Firms in the Manufacturing Industries (Peninsular Malaysia): All vs. PS Establishment in 1969 and 1974 Grose Annual Sales 1 9 6 9 1 9 7 4 Size Group Total Establishment PS Establishment Total Establishment PS Establishment Below $50,000 1,090 (34%) 7 (4%) 594 (13%) 6 (1%) $50,000-$199,999 863 (27%) 8 (5%) 1,256 (27%) 23 (6%) $200,000-$999,000 762 (24%) 49 (28%) 1,595 (34%) 74 (18%) $1,000,000-$4,999,999 351 (11%) 68 (39%) 837 (18%) 173 (42%) $5,000,000 and over 121 (4%) 43 (25%) 414 (9%) 140 (34%) Total 3,187 (100%) 175 (100%) 4.696 (100%) 416 (100%) Source: Department of Scatistics, Survey of Manufacturing Industries, Peninsular Malaysia, 1969 and 1974. -95- Annex Table 7.19 Proposed Investment Size and Investment per Worker: PS vs. WTI Projects, 1973-79 Proposed Invest- Proposed Invest- Number of ment per Project ment per Worker Approvals (M$ Mil.) (M$ 1,000) PS WTI PS WTI PS WTI 1973 J.79 236 5.0 0.6 18.2 9.1 1974 166 305 5.9 1.1 26.1 16.0 1975 95 288 3.4 1.2 35.4 22.1 1976 105 223 6.0 1.3 42.2 29.0 1977 98 218 2.9 0.9 26.4 17.2 1978 110 225 4.2 1.1 34.7 21.6 1979 107 301 5.4 3.6a/ 21.5 58.6a/ Annual Average 123 257 4.7 1.4 29.2 / 24.8 (30.5)- (19.2)- Source: MIDA a/ Excluding petroleum and coal projects. b/ Average excluding 1979 data.