Report No. 3851-MA \7}LE CO;PY Malaysia Development Issues and Prospects of Small Enterprises (In Three Volumes) Volume Ill: Annexes and Statistical Tables June 25, 1982 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$) M$1 US$0.44 US$1 = M$2.25 ABBREVIATIONS BEP - Bumiputra Entrepreneurship Program BPM - Bank Pertanian Malaysia BPMB - Bank Pembangunan Malaysia Berhard BNM - Bank Negara Malaysia CCDSE - Coordination Committee for Development of Small Enterprises CCC - Credit Guarantee Corporation EDPs - Entrepreneurship Development Programs EPU - Economic Planning Unit FA - Financial Assistance (programs) FMP - Fourth Malaysia Plan FTZs - Free Trade Zones GOM - Government of Malaysia ICA - Industrial Coordination Act, 1975 LSEs - Large-Scale Enterprises (employing 200 or more persons) MARA - Majlis Amanah Rakyat MCYSYD - Ministry of Culture, Youth and Sports - Youth Division MEDEC - Malaysian Entrepreneurship Development Center MIC - Malaysian Industrial Classification (Updated) MIDA - Malaysian Industrial Development Authority MIDF - Malaysian Industrial Development Finance Co. MIDFIC - MIDF Industrial Consultants Sendirian Berhard MIEL - Malaysian Industrial Estate Sendirian Berhard MLEs - Medium- and Large-Scale Enterprises (employing 50 or more persons) MSEs - Medium-Scale Enterprises (employing 50 to 199 persons) MTISED - Ministry of Trade and Industry - Small Enterprises Division MTISSED - Ministry of Trade and Industry - Small-Scale Enterprise Department NEP - New Economic Policy NPC - National Productivity Center PE - Pernas-Edar Berhard SIRIM - Standards and Industrial Research Institute of Malaysia SSEs - Small-Scale Enterprises (employing 5 to 49 persons) SSIs - Small-Scale (Manufacturing) Industries (employing 5 to 49 persons) SLS - Special Loan Scheme SLGS - Special Loans Guarantee Scheme TA - Technical Assistance TSEs - Tiny-Scale (or Traditional) Enterprises (employing l to 4 persons) GOVERNMENT OF MALAYSIA FISCAL YEAR January 1 - December 31 FOR OFFICIAL USE ONLY MALAYSIA DEVELOPMENT ISSUES AND PROSPECTS OF SMALL ENTERPRISES VOLUME III: ANNEXES AND STATISTICAL TABLES Table of Contents Page No. LIST OF ANNEX TABLES . . . . . . . . . . . . . . . . . . . . . . .ii ANNEX I: ECONOMIC SIGNIFICANCE AND ROLE OF SMALL ENTERPRISES 1 1. Scope and Coverage of the Annex Tables . . . . . . . 1 2. Definition (Size Standard) of SSEs . . . . . . . . . . . . . 3 3. Limitations of the Data Base: A Brief Commentary . . . . . . 6 ANNEX II: REVIEW OF PRINCIPAL DEVELOPMENT FINANCING INSTITUTIONS 8 1. The Malaysian Industrial Development Finance Berhad (MIDF) 8 2. The Bank Pembangunan Malaysia Berhad (BPMB) . . . . . . . . . 10 3. The Credit Guarantee Corporation (CGC) ... .... . . . . 15 4. The Bank Pertanian Malaysia (BPM) . . . . . . . . . . . . . . 17 5. The Majlis Amanah Raayat (MARA) . . . . . . . . . . . . . . . 19 6. The Malaysian Industrial Estates Sendirian Berhad (MIEL) . . 22 7. Other Institutional Programs ... . . ..... . . . . . . 23 ANNEX III: MAJOR PROGRAMS OF TECHNICAL ASSISTANCE TO SMALL-SCALE 25 ENTERPRISES 1. Majlis Amanah Raayut (MARA) .25 2. National Productivity Center (NPC) . . . . . . . . . . . . . 28 3. Ministry of Culture, Youth and Sports-Youth Division (MCYSYD) 34 4. Malaysian Entrepreneurial Development Center (MEDEC) . . . . 36 5. Pernas Edar Sdn. Bhd. (PE) .39 6. Bank Pembangunan Malaysia Berhad (BPMB) . . . . . . . . . . . 40 7. Standards and Industrial Research Institute of Malaysia (SIRIM) . . . . . . . . . . . . . . . . . . . . . . . . . . 42 8. MIDF Industrial Consultants (MIDFIC) . . . . . . . . . . . . 45 9. Other Institutions .46 ANNEX IV: RATIONALE FOR THE PROPOSED STRENGTHENING OF THE SMALL ENTERPRISES DEVELOPMENT DIVISION OF THE MINISTRY OF TRADE AND INDUSTRY 47 1. Introduction ..47 2. Rationale for the Suggested Changes in MTISED ... . . . . . . 48 3. Strengthening of Other SSE Development Organizations . . . 51 ANNEX V: SOME SUGGESTIONS FOR FOLLOW-UP STUDIES 55 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. - ii - LIST OF ANNEX TABLES Part 1 SECTION I -- OVERALL ECONOMYf Table No. Page No. 1.1 Malaysia: Gross Domestic Product by Econom:ic Activity in Producers Value at Constant Prices (1970 = 100) for 1971, 1973, 1978, 1980 and 1990 . . . . . . . . . . . . . 58 1.2 Malaysia: Total Employment by Major Sectors, 1970, 1973, 1978 and 1980 . . . . . . . . . . . . . . . . . . . . . 59 1.3 Malaysia: Growth in Number of Registered Firms (Sole Proprietorship and Partnership), 1966-1980 . . . . . . . . . 60 Part 2 SECTION II - PRINCIPAL STATISTICS FOR TUE 34 SECTORS 2.1 Peninsular Malaysia: Principal Statistics by Sectors, 1978 . . 61 2.2 Peninsular Malaysia: Principal Statistics by Sectors, 1973 . . 62 2.3 Peninsular Malaysia: Growth and Economic Significance of Businesses by Selected Sectors, 1973/74-1978 . . . . . . . . 63 SECTION III - SIZE DISTRIBUTIONS FOR THE SELECTED SECTORS 3.1 Peninsular Malaysia: Number of Establishments in Selected Sectors by Total Employment Size Group, 1978 . .... . . . 64 3.2 Peninsular Malaysia: Number of Persons Engaged in Selected Sectors by Total Employment Size Group, 1978 . .... . . . 65 3.3 Peninsular Malaysia: Value Added in Selected Sectors by Total Employment Size Group, 1978 ... . . . . . . . . . . 66 3.4 Peninsular Malaysia: Fixed Assets in Selected Sectors by Total Employment Size Group, 1978 . . . . . . . . . . . . . . 67 3.5 Peninsular Malayisa: Gross Output in Selected Sectors by Total Employment Size Group, 1978 ... . . . . . . . . . . 68 3.6 Peninsular Malaysia: Principal Statistics of Selected Sectors by Total Employment Size Group, 1973 ... . . . . . 69 3.7.1 Peninsular Malaysia: Principal Statistics of Selected Sectors by Employment Size Segments, 1978 ... . . . . . . 70 3.7.2 Peninsular Malaysia: Principal Statistics of Selected Sectors by Employment Size Segments, 1973 ... . . . . . . . 72 3.8 Peninsular Malaysia: Principal Statistics of Selected Sectors by Fixed Assets Size Group, 1978 ... . . . . . . . 75 3.9 Peninsular Malaysia: Principal Statistics of Selected Sectors by Fixed Assets Size Group, 1973 ... . . . . . . . 74 - iii - Table No. Page No. 3.10.1 Peninsular Malaysia: Principal Statistics of Selected Sectors by Fixed Assets Size Group, 1978 ... . . . . . . 75 3.11 Peninsular Malaysia: Employment Per Establishment in Selected Sectors by Type for Smallest Size Groups, 1973,74/75 .... . . . . . . . . . . . . . . . . . . . . 76 SECTION IV - OPERATIONAL CHARACTERISTICS OF THE SELECTED SECTORS BY SIZE GROUPS OR SEGMENTS 4.1 Peninsular Malaysia: Operational Characteristics of Selected Sectors by Total Employment Size Group, 1978 . . . 77 4.2 Peninsular Malaysia: Operational Characteristics of Selected Sectors by Total Employment Size Group, 1973 . . . 78 4.3.1 Peninsular Malaysia: Operational Characteristics of Selected Sectors by Employment Size Segments, 1978 . . . . 79 4.4.1 Peninsular Malaysia: Operational Characteristics of Selected Sectors by Employment Size Segments, 1973 .... 80 4.5 Peninsular Malaysia: Operational Characteristics of Selected Sectors by Fixed Assets Size Group, 1978 . . . . 81 4.6 Peninsular Malaysia: Operational Characteristics of Selected Sectors by Fixed Assets Size Group, 1973 .... 82 SECTION V - STRUCTURAL CHARACTERISTICS OF THF. SIZE SEGMENTS BY SELECTED SECTORS 5.1.1 Peninsular Malaysia: Percent Distribution of Principal Statistics in Employment Size Segments by Selected Sectors, 1978 .83 5.2.1 Peninsular Malaysia: Percent Distribution of Principal Statistics in Fixed Assets Size Segments by Selected Sectors, 1978 ..................... 85 SECTION VI - STRUCTURAL CHARACTERISTICS OF THE SELECTED SECTORS BY SIZE GROUPS 6.1 Peninsular Malaysia: Percent Distribution of Number of Establishments in Selected Sectors by Employment Size Group, 1978 .86 6.2 Peninsular Ma aysia: Percent Distribution of Number of Persons Engaged in Selected Sectors by Employment Size Group, 1978 .87 6.3 Peninsular Malaysia: Percent Distribution of Value Added in Selected Sectors by Employment Size Group, 1978 . . . 88 6.4 Peninsular Malaysia: Percent Distribution of Fixed Assets in Selected Sectors by Employment Size Group, 1978 ... . 89 - iv - Table No. Page, No. 6.5 Peninsular Malaysia: Percent Distribution of Gross Output in Selected Sectors by Employment Size Group, 1978 . ... 90 6.6 Peninsular Malaysia: Percent Distribution of Principal Statistics in Selected Sectors by Total Employment Size Group, 1973 ............ -.- "1 6.7.1 Peninsular Malaysia: Percent Distribution of Principal Statistics in Selected Sec.tors by Employment Size Segments, 1978.92. ........... . 92 6.7.2 Peninsular Malaysia: Percent Distribution of Principal Statistics in Selected Sectors by Employment Size Segments, 1973 .... . . . . . . . . . . . . . . . . . . 93 6.8 Peninsular Malaysia: Percent Distribution of Principal Statistics in Selected Sectors by Fixed Assets Size Group, 1978 ......... . 94 6.9 Peninsular Malaysia: Percent Distribution of Principal Statistics in Selected Sectors by Fixed Assets Size Group, 1973 .... . . . . . . . . . . . . . . . . . . . 95 6.10.1 Peninsular Malaysia: Percent Distribution of Principal Statistics in Selected Sectors by Fixed Assets Size Segments, 1978 ............ . 96 SECTION VII - AVERAGE ANNUAL GROWTH RATES OF THE SELECTED SECTORS BY SIZE GROUIPS 7.1 Peninsular Malaysia: Average Annual Growth Rates of Selected Sectors by Total Employment Size Group, 1973/74-1978 ... . . . . . . . . . . . . . . . . . . . . 97 7.2.1 Peninsular Malaysia: Average Annual Growth Rates of Selected Sectors by Employment Size Segments, 1973/74-1978 .......... . . 98. 7.3 Peninsular Malaysia: Average Annual Growth Rates of Selected Sectors by Fixed Asset Size Group, 1973/74-1978 99 Part 3 SECTION VIII - OVERALL MANUFACTURING SECTOR: ADDITIONAL DATA 8.1.1 Peninsular Malaysia: Number of Establishments in Manufacturing Sector by Employment Size Segments and States, 1973 .C.I. ....... . ........ . . .. -1o 8.2.1 Peninsular Malaysia: Number of Persons Engaged in Manufacturing Sector by Employment Size Segments and States, 1973 .......... . . . 101icIl 8.3.1 Peninsular Malaysia: Value Added of Manufacturing Sector by Employment Size Segments and States, 1973 .* - 102 Table No. Page No. 8.4.1 Peninsular Malaysia: Economic Significance and Relative Efficiency of Selected SSIs, 1978 . . . . . . . . . . . . 103 8.5.1 Peninsular Malaysia: Total Employment and Value Added in Manufacturing Industries by Employment Size Segments, 1978 .105 8.6.1 Peninsular Malaysia: Distribution of Total Employment and Value Added in Manufacturing Sector by Industrial Divisions and Employment Size Segments, 1978 . . . . . . 108 8.7 Peninsular Malaysia: Preliminary Data on Problems Encountered by Small Manufacturing Establishments . . . . 109 Part 4 SECTION IX - FINANCIAL ASPECTS 9.1 Malaysia: Commercial Bank Loans Outstanding to Small-Scale Enterprises, 1976-80 . . . . . . . . . . . . . . . . . . 110 9.2 Malaysia: Approved Loans under the CGC Scheme, 1976-80 . 111 9.3 Malaysia: Finance Company Loans Outstanding to Small-Scale Enterprises, 1976-80 . . . . . . . . . . . . . . . . . . 112 9.4 Malaysia: Total Loans Outstanding of the Malaysian Indus- trial Development Finance Berhad, 1976-80 . . . . . . . . 113 9.5 Malaysia: Total Loans Outstanding of the Pemboangunan Bank Malaysia Berhard, 1976-80 .114 9.6 Malaysia: MARA's Loan Approvals, 1976-80 . . . . . . . . . 115 ANNEX I. ECONOMIC SIGNIFICANCE AND ROLE OF SMALL ENTERPRISES 1. Scope__an_ Coverag_ of_the Annex Tables 1.01 The statistical annex consists of four parts. Part 1 relates to the entire Malaysian economy and derives data from the Ministry of Finance, Economic Planning Unit, and Registar of Businesses, besides the Department of Statistics (DOS). (See Section I, Tables 1.1 to 1.3.) Parts 2 and 3 relate to Peninsular Malaysia only and derive data mainly from the Department of Statistics. Part_2 covers the 34 nonagricultural sectors for which the DOS undertook special tabulation for the mission for the latest available year, 1978. Primarily due to the time constraint under which the basic data had to be processed and analyzed, principal statistics (such as the number of establishments, total number of persons engaged, value added, gross output, fixed assets, salaries and wages) are provided for all the 34 sectors for 1973 (or 1974) and 1978, but without size (or any other) distribution. (See Section II, Tables 2.1 to 2.3.) The rest of Part 2 (Sections III through VII) deals with the size distributions for selected 12 sectors for 1978 and five sectors for 1973 (or 1974). These sectors were selected according to their contribution to the value added in 1978, though ready availability of the data naturally was a binding constraint, especially for the base year, 1973 (or 1974). The selected five sectors (manufacturing, retail trade, wholesale trade, construction, and mining) contributed almost 85% of the value added and employment created in all the 34 sectors in 1978. The contribution of the selected 12 sectors (above mentioned five sectors together with road haulage, bus transport, quarrying, housing developers, produce brokers, finance companies and insurance companies) varied from 91% to 95% of the total for the 34 sectors in terms of the number of establishments, total employment or value added. Part 3 relates to the manufacturing sector only (see Section VIII, Tables 8.1.1- 8.7). Finally, Part 4 relates to the financial aspects of SSEs and refers to the loans taken by them from commercial banks, finance companies and development institutions (see Section IX, Tables 9.1-9.6). 1.02 The two types of size distributions included in the Annex are by the total employment and fixed assets size groups. The former is exten- sively used in this report,/l and pertains to the total number of persons engaged - consisting of working proprietors and unpaid family workers, and paid part- and full-time employees. For each size criterion the basic data are available in ten size groups, and the principal statistics are provided for them in Section III, Tables 3.1 to 3.6, 3.8 and 3.9. However, it was desirable to combine these ten size groups into four size segments in order to construct statistical profiles suitable for providing an analytical base for studying government support programs and policies. These four segments are the tiny-, small-, medium- and large-sized establishments (TSEs, SSEs, MSEs and LSEs respectively), and the statistical results are presented in Tables with a three digit serial number, such as 3.7.1, 3.7.2, and 3.10.1. 1 The considerations regarding the choice of a size criterion are briefly enunciated in the following paras. 1.10-1.12. -2- 1.03 While there may be strong social and political c.isiderations for promoting SSEs in Malaysia, as elsewhere in the world, there may also be economic considerations which impel a government to take special measures for protecting and developing SSEs. Whether economic considerations actually exist or not is worth investigating, and the approach followed here is to conduct a comparative analysis of the abovementioned prominent 8 to 12 sectors by the scale of operation in terms of the operational characteristics such as the labor productivity, capital productivity and capital-labor ratio. (See Section IV, Tables 4.1, 4.2, 4.5 and 4.6 by size group, and Tables 4.3.1 and 4.4.1 by size segment.) 1.04 The structure of the nonagricultural business activity, comprising of the 34 sectors, has been analyzed by the scale of operation in two ways. First, the economic significance of a sector in any size segment is indicated by estimating the shares in terms of the principal chiaracteristics of the segment. The resulting industrial or economic activity structure by size segment is provided in Section V, Tables 5.1.1 to 5.2.1. Second, the economic significance of a size group or segment of any sector is indicated by estimating the shares in terms of the principal characteristics of the whole sector. The resulting size structure is provided in Section VI, Tables 6.1 to 6.6, 6.8 and 6.9 by group, and in Tables 6.7.1, 6.7.2 and 6.10.1 by segment. 1.05 The growth performance of SSEs has also been studied by sectors in relation to establishments of other sizes and in terms of the five princi- pal characteristics. The scope of the study was, however, limited by several practical considerations. For instance, the latest year for which the rele- vant data could be compiled was 1978, and the earliest year during the 1970s for which reasonably comparable data could be compiled was 1973 or 1974. Moreover, the analysis is confined to five sectors (manufacturing, retail trade, wholesale trade, construction, and mining), and no attempt is made to estimate the growth rates by employment or fixed assets size groups/segments for the remaining 29 sectors (which together contributed only 15% of the 34 sectors' total value added in 1978). (See Section VII, Tables 7.1, 7.2.1 and 7.3.) 1.06 Emphasis on the promotion of SSEs is also motivated by considera- tion of regional deconcentration or dispersal. Because of the time limita- tions the mission could not attach high priority to the necessary data compilation. Yet, it has been possible to analyze the size distribution of the overall manufacturing sector by the 11 States in the Peninsular Malaysia in terms of the number of establishments, total employment and value added for 1973. (See Section VIII, Tables 8.1.1, 8.2.1 and 8.3.1.) 1.07 While the Government strives to promote SSEs through a variety of support programs for achieving its socio-economic objectives, it would be highly desirable to examine the empirical evidence, if any, that provides economic justification and rationale to the promotional-activities. As discussed in Chapter 2, Section D of the Main report, the data deficiencies were formidable in conducting the analysis, yet we were able to obtain - 3 - estimates of relative efficiencies for SSIs in a larger number of manufac- turing industries. (See Table 8.4.1.) The basic data on total employment and value added by the four size segments for all individual industries are presented in Table 8.5.1. As the employment coverage of these industries is neither complete nor uniform, the resulting nature of coverage has been identified for each industry. Despite this coverage limitation, it was desirable to present two industrial structures at 2-digit level of MIC: (i) showing the industrial composition of a size segment, and (ii) size compo- sition of an industrial division (such as MIC Code 31 Food, Beverages and Tobacco Products). It was also possible to identify 10 major industrial groups (such as MIC Code 321 Textiles) which together provided M$3.95 billion (out of M$5.30 billion) manufacturing value added in 1978. (See Table 8.6.1.) 1.08 The census or survey type of information analyzed above serves an extremely useful though only a limited purpose, the limitations generally stem from the limited scope of such inquiries. For instance, information on skill composition of employment, degree of capital utilization, source of finance, marketing channels, problems confronting an establishment, awareness of and access to government support programs, impact of government policies and administrative procedures, etc. is seldom compiled through such inquiries. The mission made a modest attempt to gather some information on small scale manufacturing establishments by repeating the survey conducted in the Peninsular Malaysia by Mr. Chee Peng Lim in 1974 for his doctoral thesis./l Because of the cost and logistic considerations, however, the scope and coverage of this special inquiry were further restricted to some 100 establishments (out of the original 400). The preliminary statistical results on the problems encountered by small manufacturing firms during 1981, and on the interrelationship between the constraints and growth are presented in Table 8.7. 1.09 The amounts of loans approved or outstanding to SSEs by economic sectors and subsectors for the past five years (1976-80) are given in Section IX, Tables 9.1-9.6. A lack of uniformity in the definition of SSEs used by various financial institutions, however, inhibits a clear and meaningful overview of the financial situation. 2. Definition (Size Standard) of SSEs 1.10 The Government recognizes the need for establishing size standards for SSEs, but there is no universally best way to define SSEs or related concepts. Statistical, administrative, and analytical definitions have to be adjusted to the environment and purpose in hand. It would, nevertheless, benefit everyone to have some consensus on certain simple but operationally /1 Chee Peng Lim, Survey of Small Industry in Peninsular Malaysia - Final Report (Faculty of Economics and Administration, University of Malaya, Kuala Lumpur, 1975, unpublished). - 4 - useful standard classification, especially to facilitate the development, monitoring and evaluation of government support programs and policies./! As in many other countries, in Malaysia too many definitions - im[plicit or explicit, administrative or statistical, which may be often incompatible are in vogue. For instance, financial institutions (commercial banks, finance companies, development banks, etc.) define SSEs mostly in terms of the value of fixed assets or amount of loans, and these values or amounts may differ from institution to institution as well as over time. The Ministry of Trade and Industry does not define small or large establishments perse, but requires registration of manufacturing establishments under the Industrial Coordination Act in terms of certain value of fixed assets or employment. The Department of Statistics, on the other hand, applies different employment cutoff points in conducting its annual manufacturing survey, and an annual turnover point in conducting the construction survey. As a result, any evaluation or analysis of the impact of government policies and programs to support SSEs becomes quite onerous. 1.11 The issue of definition, or size standard of SSEs is actually far more complex than apparent, as evident from the following points: (a) The definition adopted by the mission in this report is essen- tially illustrative and not prescriptive, since we adopted a uniform definition in terms of a single characteristic for all the sectors mainly for the sake of brevity. Data on. four size distributions were (could have been) available for many (all) sectors, out of which two were in terms of the value of fixed assets or turnover/output/revenue, and two were in terms of the number of employees - total or paid full-time. (b) Most financial institutions favor a monetary base for size standards. Although a monetary component is useful, it is subject to several major qualifications. First, it often refers to fixed assets and thereby excludes stocks or inventories. It would seem more appropriate to consider total assets (fixed plus stocks), as they refer to the total capital resources, and not merely to a component of it. Specifically, the value of stocks is a more important component of total assets than the value of fixed assets in sectors, such as retail and wholesale trade. Second, the proportion of leased fixed assets (plant and machinery, transport equipment, building, or land) to assets in use may differ from establishment to establishment, though not the corresponding employment or output/turnover levels. Third, depending upon the age structure of fixed assets, their book value (as recorded in the account books of an establishment) differs from the replacement or market value, the latter may be a better proxy of the capital resources in economic terms. Finally, any monetary measurement /1 A secondary consideration could be to facilitate international comparability for analytical purposes, which could be acquired only in terms of the employment cut-off points. - 5 - needs adjustment for inflation, and a periodic revision (say, every three years or so) may be needed to accommodate the inflation and retain the same real value of assets.Ii (c) The criterion in terms of employment size is also subject to many qualifications. First, if total employment is used, it includes paid or unpaid part-time workers (some of which may be proprietors). Though the proportion of such workers goes down as the total employment size rises (see Table 3.11), it is subject to intersectoral, interindustry and interregional variations for any given employment size. Second, two or more establish- ments of the same employment size in the same industry may be very different in their annual turnover or fixed assets since their capital and/or labor- skill intensities may be quite different. Specifically, use of sophisti- cated technology impairs the validity of employment size as an adequate criterion of size standard for SSEs. (d) Both the capital and labor intensities are subject to substantial variations by sectors and subsectors. Use of a single size standard may not, therefore, be ideal on conceptual grounds, though it may be necessi- tated by practical considerations. (e) A size standard should not be a static but a dyrnamig concept or measurement, and therefore its definition should not remain fixed (exclusively or primarily) in absolute terms. A small enterprise may be smaller only in relation to a larger enterprise. With the growth of an economy the average size of an establishment tends to rise, and it may be useful to revise the definition every five years or so. (f) Whatever size criterion or criteria are adopted by the Government now and modified later as the circumstances change, it would be desirable to ensure that the statistical data in a time-series form continue to be available on a compatible basis so that policy-oriented empirical analysis can be conveniently conducted. (g) Whatever size standard is adopted, even if it is a combination of employment and assets, SSEs belonging to multi-establishment firms could be quite different in their characteristics than others. 1.12 Following a discussion of the size standard at conceptual or methodological level, it would be interesting to compare the empirical results of the two size standards: in terms of the total employment and fixed assets. If the scale of operation is defined in terms of the value of fixed assets size group (instead of the total employment size group, as used in the Main Report), the overall picture that emerges for the above-mentioned 12 leading sectors combined is not very different though there are some important differences by individual sectors such as manufacturing, retail 11 Being cognizant of this consideration, MIDF periodically revises its definition of SSEs. -6- trade, wholesale trade, or construction./l For instance, about 42% of the manufacturing establishments were TSEs according to the lowest employment size groups (of less than 5), but only 8-9% could be tiny or very small according to the fixed assets size group (of less than M$10,000). A percentage similar to the criterion in terms of the number of establishments was yielded (44%) by combining the lowest four size groups of fixed assets (that is up to M$100,000)./2 When the 12 leading sectors, for which data by both the size groups were available and which covered 90% to 95% of the nonagricultural activity covered by the 34 sectors in 1978, then the two distributions for any characteristic tended to converge reasonably well. In other words, though the sectoral composition of SSEs is quite sensitive to the size criterion in use, their overall size (in terms of the number of establishments, total employment, value added, etc.) is not. 3. Limitations of the Data Base: A Brief Commentary 1.13 In order to construct meaningful statistical profiles of SSEs and conduct policy-oriented economic analysis, it became necessary for the mission to fill some important voids in the data base. Since an evaluation of the industrial data base has been done elsewhere (see footnote (1) on page 6. in the Main Report), no attempt is made here to evaluate the adequacy of the present data base, even though industrial coverage of the present data base is wider than the earlier one (which was confined to the manufacturing sector). While the present study relates to all the 34 nonagricultural sectors for which data by establishment size were available, actually the analysis concentrated on 5 to 12 sectors as mentioned in para. 1.01 above, and that too only at the aggregate level of a sector, except manufacturing for which some disaggregate analysis could be done. While numerous data gaps have been filled by the mission by utilizing the available partial information (as apparent from the statistical tables), a brief commentary on the limitations of the present data base is still warranted (even if it means belaboring a well recognized point):/3 /1 It would have been more appropriate in the present context, if size distribution statistics were available by total assets instead of (or besides) the fixed assets. /2 The comparative analysis is confined to the ten size groups of total employment and fixed assets. Alternatively, if the data on individual establishments can be processed after arranging them in ascending order of a characteristic, then establishments could be grouped as deciles and corresponding sizes in terms of employment, fixed assets, etc. could be compared. Such an analysis could throw additional light on the classifi- cation of establishments by various size criteria. /3 For additional qualifications of the data base, see Chapter 2 of the Main Report, specifically footnotes /1 on page 6, /2 and /3 on page 8, /1 of page 16, /1 and /2 on page 20, /1 on page 23, /2 on page 26, /1 on page 30, and /2 on page 31. -7- (a) The entire data base relates only to Peninsular Malaysia as no consolidated and compatible data were available for the whole of Malaysia. The mission understands that most of the data are now available including that for Sabah and Sarawak. (b) To the extent that the large gaps between the results of labor force and establishment surveys do not arise due to differences in the concepts and measurement used in the two types of surveys, the remaining gaps would remain a matter of serious concern to the policymakers and users of industrial statistics (see para. 2.03 and Table 1 in Volume II for details.) These gaps reinforce the need for conducting a sample survey of household establishments. (c) While a lack of comparability between the absolute numbers of business establishments reported by the Office of the Registrar of Businesses and the DOS, and to some extent even between the growth rates derived from them is recognized (see para. 2.20 in Volume II), yet the large gap between the latter reinforces the need for improving the master list/frame used by the DOS. This is also corroborated by the findings of Technonet Asia's study on metalworking industries (see para. 6.10 in Volume II). (d) The latest available year was 1978 with the exception of a few sectors for which 1979 data were available to the mission in October 1981./i (e) Even for 1978 the data by employment or fixed assets size groups were not fully available for important sectors such as manufacturing and construction. For instance, out of 118 manufacturing industries, for as many as 63 industries no data were available for establishments employing less than 10 paid full-time persons;/2 and data on construction contractors with annual turnover of less than M$100,000 were also not available by employment size. (f) Though the catering activity was covered in the base year (1973), it was excluded from the terminal year (1978)./3 (g) It is understandable that the data for two or more size groups would have to be combined whenever the number of establishments in a size group is less than three so that the confidentiality of a return is preserved. However, in the data base available to the mission the establishment size groups of 20-29 and 30-49 in both retail and wholesale trade were combined. The mission understands that this combination was done only for the purposes of publication and the disaggregated data can be available for official use. /1 Over the last two years the DOS has made significant progress as tar as the timeliness of available data is concerned. For instance, the 1979 data were available in March 1982. Moreover, the 1981 industrial census and establishment surveys have been launched almost six months ahead of the normal schedule. /2 This is due to the use of certain employment cutoff points below which the DOS has not been collecting the data in its annual surveys. /3 The mission understands that the catering activity is covered only for the odd-numbered calendar years and the data (without size clas) for 1979 were available in March 1982. - 8 - ANNEX II. REVIEW OF PRINCIPAL DEVELOPMENT FINANCING INSTITUTIONS 1. The Malaysian Industrial Development Finance Berhad (MIDF) Background 2.01 The Malaysian Industrial Development Finance Berhad was established in March 1960, as the country's first development finance institution with the objective of promoting the growth of an infant manufacturing sector and of diversifying the agriculture-oriented economy. Originally, foreign investors held the majority ownership of MIDF-s capital of M$10 million, but this was transferred to Malaysian control in 1970. Initially MIDF's progress was slow. Following the recommendations of an ad hoc committee, the Board of Directors was reconstituted in 19.67 with a majority of Malaysian Directors. As of March 31, 1981, around 41% of MIDF-s share capital of M$79.6 million (authorized M$150 million) was held by the Government of Malaysia and 47% by 34 banking and other financial institutions, of which the Malayan Banking Corporation Berhacl is the largest private shareholder (12.2%). As of March 1981, MIDF had financed 2,689 projects with a total value of M$1,087 million iLn nearly all the major subsectors of manufacturing. These projects have resulted in fixed capital investment of M$2,854 million; t:hey are estimated to have generated foreign exchange earnings/savings of M$1,418 million and have created 119,000 jobs. 2.02 In 1964, MIDF established the Malaysian Industrial Estates Ltd. Sendirian Berhad (MIEL) as a wholly-owned subsidiary, to bui:Ld modern factory units for sale or lease to medium and small industries. In 1971, the Industrial Consultants SendiLrian Berhad (MIDFIC) was formed to provide a wide range of management and consultancy services. MIDF has also a majority shareholding in the Arab-MalaysiLan Development Bank (AMDB) established in 1975. Group profits (M$20.8 miLlion in FY80/81) have been growing during the past five years in spite of the fact that total assets and the portfolio have stagnated. During the initial phase, MIDF could secure substantial funds from the Government. Of these M$57.5 milLion interest--bearing (6.75%) loans and M$33.0 million interest-free loans remained outstanding as of March 31, 1981. Funds raised from official sources (World Bank, Asian Development Bank, Kreditanstalt fur Wiederaufbau) stood at M,$7.7 million, while resources from the issue of medium-term notes with maturities of 5-7 years and interest rates of 7-8,% amounted to M$53.5 million. The group s capital and reserves stood at M8159.1 million. MIDF employed a total staff of 247 (March 31, 1981), 48 of whom were stationed at the Company-s seven branch offices. Objectives 2.03 MIDF aligns itself with the nation's industrial strategies and aims at innovatively meeting the growing and changing needs of the manufacturing sector. When the New Economic Policy was introduced, MIDF directed its own strategy towards assisting the Bumiputra and small-scale sectors, specifically in the less-developed states. Facilities and Services 2.04 MIDF offers the following services: (a) medium- and long-term financing ranging from 5 to 15 years for the acquisition of fixed assets (including land) normally not in excess of 50% of total project cost; (b) factory mortgage loans /1 for the purchase of factory buildings, up to 80% of total cost; (c) machinery loans for a 3-4 year period up to a maximum of 75% of total acquisition cost, to be repaid on a monthly installment basis; and (d) working capital loans, equity financing and services such as feasibility studies are offered to a limited extent for Bumiputra enterprises only. Terms and Conditions 2.05 MIDF extends term loans with maturities of up to 15 years at market rates, currently between 11-13%, depending on the merits of each case. Financing normally covers only 50% of the project cost, indicating a 1:1 capital gearing policy for incremental investment. All loans have to be fully secured. However, softer terms apply to loans extended by MIDF's Bumiputra Division: projects qualify for an interest rate subsidy of between 0.5-1%, debt/equity requirements are reduced to a 60:40 ratio, and working capital financing is also extended, if the borrower proves that he has been unable to secure funds from commercial banks. Small Enterprise Financing 2.06 MIDF currently classifies small loans as those up to M$250,000 for enterprises with fixed assets not exceeding M$500,000. As of March 31, 1981, MIDF had approved 2,030 such loans, accounting for 75% of all loans on a cumulative basis and representing 15.8% of total outstanding loans. Those states classified as "less developed" absorbed more than one-third of all out- standing small loans. In terms of number of loans, the metal industry has absorbed about 22% of all small loans during the past 5 years, followed by /1 In addition to MIDF's factory mortgage scheme, its subsidiary MIEL provides standard factory buildings for rental and purchase specifically by small and medium enterprises (see Section 6 below). - 10 - food and beverages (17%), chemicals (15%) and woodl products (14%). About 83% of all these projects employ 30 or fewer staff. Bumiputra Division 2.07 MIDF does not have a special organizational unit to deal with small-scale financing. Even its Bumiputra Division extends loans and other services irrespective of size. This Division has approved so iar M$183 million (in loans) for 418 bumiputra projects, 302 of which were fully Bumiputra-owned, 52 had a Bumiputra participation of 60-100%, and the rest (64) had less than 60% Bumiputra ownership.El Around 49% of these loans (3% by amount) did not exceed M$50,000. In addition, during FY80/81 MIDF subscribed M$675,000 to the equity of four bumiputra projects. MIDF's Bumiputra Division also provides assistance in project identifcation, evaluation, implementation and follow-up. Its entrepreneurial development program starts with the identification of potential entrepreneurs, followed by their exposure to training and practical experience and eventually financing of their projects. This integrated program thus supports potential entrepreneurs through the entire projecti cycle until they are ready to operate independently. HIowever, the program is very :Labor inten- sive and MIDF is saddled with a growing workload which is reflected in its plan to expand the staff of this division by some 20% to 25 professionals. Arrears 2.08 MIDF had M$23.2 million of loans in arrears, which accounted for 9% of its total outstanding loans as of March 31, 1981. Legal acition for loan recovery was instituted or pending in 38 cases. Future Role in SSE Development 2.09 MIDF's role in SSE deveLopment has been restricted to those SSEs which can afford strictly commercial terms and have the required equity resources for project implementation. While, slightly softer terms and conditions apply to projects assisted by MIDF's Bumiputra Division, such projects have a limited impact on the SSE sector, as MIDF services are restricted to manufacturing and the number of projects and total amounts extended are relatively small. 2. The Bank Pembangunan Malavsia Berhad (BPIB) Background 2.10 Bank Pembangunan Malaysia Berhad or the Development Bank of Malaysia was established in 1973 as a fully government-owned institution. Its share capital of M$20 million is held by the Government (92.5%) and Bank !J Bumiputra-designated companies require, inter alia, a Bumiputra parti- cipation in the share capital of at least 51%. - 11 - Bumiputra (7.5%) J1 employed a total staff of 221 (including 50 branch office personnel), 130 of whom were professionals.L| BPMB aligns itself with the Government's development strategy and is one of the instruments for implementing the economic and social objectives of the New Economic Policy. More specifically, BPMB is fully committed to encouraging and assisting Malays and other indigenous people in identifying, initiating, developing and implementing business ventures through the various stages of an enterprise with the principal objective of increasing and accelerating their active participation in the industrial and other business sectors of the economy. Programs 2.11 In pursuance of above stated objectives, BPMB offers the following programs: (a) financial assistance to Bumiputras to start, expand and revitalize businesses and to venture into new areas of activities, particularly at the level of small and medium-size operations; (b) purchase schemes for shares, to be held in trust for the eventual transfer to Bumiputra investors; (c) assistance in adapting imported technologies and in developing local ones; (d) identification, promotion, implementation and management of projects for Bumiputras; and (e) assistance in the creation of a Bumiputra commercial and industrial community through upgrading of skills with particular focus on small and medium-size operations. 2.12 BPMB's facilities are reserved for Bumiputra-controlled businesses, which are defined as those ventures in which Bumiputras hold at least 51% of the share capital, which are actively managed by Bumiputras and in which the majority of staff are Bumiputras. Businesses in the manufacturing sector and in almost all other sectors including commerce and transportation qualify for BPMB's assistance. BPMB's definition of small projects deviates from Bank Negara's definition, and focusses on loans not !1 Bank Bumiputra is Malaysia's largest commercial bank. Its share capital is held in trust by the Government (30%) and by P.T. Permodalan (70%), for the eventual transfer to Bumiputras. 12 BPMB maintains branch offices in Kota Bharu, Kuala Trengganu, Kuantan, Johore Bharu, Melaka, Ipoh, Alor Setar, Pulan Pinang and Kuching. - 12 - exceeding M$300,000 for enterprises with fixed assets, including land, oi up to M$1,000,000, whose equity and number of workers do not exceed M$250,000 and 25 respectively. Facilities and Services 2.13 BPMB offers the following services: (a) term loans with a maturity of up to 15 years for the purchase of fixed assets such as land, buildings and machinery; (b) working capital financing either as a component of a fiinancial package or as a separate facility; (c) equity financing thus normally limited to 30% of the borrowers share capital; (d) loans to individual Bumiputras for the acquisition of shares oif companies where the borrower is employed; (e) loans to cooperatives or individuals, who are not employed by the company whose share they want to purchase, but who are offered attractive opportunities in 100% Bumiputraowned companies; (f) leasing up to five years; (g) underwriting and private placement of share issues; (h) medium- and long-term guarantees for machinery and equipment loans, extended by suppli'ers or other financial institutions;]I and (i) pre- and post-implementation advisory and management services as a part of BPMB's integrated approach which comprises frequent follow-up visits during the disbursement phase of the loans and quarterly visits thereafter. However, projects which develop serious operational probl'ems are subject to more intensive advisory and rehabilitation efforts, including direct marketing assistance through BPMB's Sales Unit. Terms and Conditions 2.14 As a rule, BPMB does not extend financing below 11$50,000 and M$30,000 for fixed investment and working capital :Loans respectiLvely, but is willing to make exceptions if the need arises. On the whole BPMIB applies 11 Criteria, limits and collateral requirements are similar to those for loan financing. BPMB charges a guarantee fee of 1/8 to 1/4 of 1% p.a. - 13 - its conditions in a fairly flexible manner to accommodate projects which require special treatment: (a) Capital_eariAg. BPMB principally aims at developing projects with a 1:1 debt/equity ratio, but is prepared to deviate from this ideal even to the extent of a 100% fixed assets financing. (b) Duration. Loan maturities, which do not as a rule exceed 15 years, are normally determined by the clients servicing ability (cash flow) and by the normal life span of the assets. The grace period depends on the merits of each case. (c) Interest Rate. BPMB relates its interest rate of currently between 8.5% and 10% to the prevailing market rates, type of financing and nature of project. The interest rate remains fixed throughout the loan period. BPMB also charges a commitment fee of 1/2% on amounts not drawn down in accordance with the disbursement schedule. If the borrower fails to withdraw the approved loan amount or a portion thereof, a 3% fee is levied. (d) 5eguritvyRequirements. BPMB requests borrowers to provide sufficient collateral and accepts, as a rule, only first charges on fixed assets at maximum margins of 75% for machinery, 80% for buildings, 90% for land and 100% for life insurances (surrender value). Other collateral is also accepted. New Work'g2in apita Loan Scheme 2.15 In 1979 BPMB introduced working capital loan financing. This new facility, aimed at providing a comprehensive financial package allows borrowers to obtain short- and long-term financing, thus relieving them of the need to approach more than one bank for full project financing. This scheme was made possible through special funds from Bank Negara. The response to the new facility has been encouraging and BPMB has so far (June 1981) approved 219 loans totalling aroung M$70 million. Magnitude of BPMB's_Lending 2.16 BPMB's total loan approvals (net) as of June 30, 1981 stood at M$317 million for 791 operations, comprising M$239 million (539 operations) of fixed asset financing, M$69 million (215 operations) of working capital financing, M$6.5 million of share financing loans (41 operations) and M$2.4 million for 3 leasing operations. BPMB's loans were largely channelled to projects in the industrial and transportation sectors, of which the latter accounted for around 25% and 12%, respectively, in terms of number and amount. The food manufacturing industry accounted for 13% (17% by amount), while the wood industry accounted for 13% by number as well as amount. These three industries accounted for 51% by number and 42% by amount of BPMB's cumulative loan approvals. As in earlier years, small loans not exceeding M$300,000 still constitute the bulk of BPMB's portfolio, - 14 - accounting for 76.4% by number and 20.9% by amount of BPMB cumulative approvals as of June 30, 1981. Prpject;ions 2.17 BPMB expects a significant increase in the number and volume oiE its operations for the 1981-85 period. Total projected lending operations of M$752 million include M$604 million for fixed asset 1,282 individual loans) and M$93 million for workingt capital financiing (406 loans). Smal:L entrepreneurs are expected to account for 70% and 20% by number and amount of fixed asset and for 84% and 23% by number and amount of working capital financing. In addition, BPMB intends to spend M$12 million on its entrepreneurial development program. Outlook 2.18 Although BPMB is still a small institute, it has grown into an efficient and mature intermediary for development financing. Despite the lack of a particular SSE focus, about 76.4% of its loans (by number) has been extended to small enterprises in the various sectors. RejecCtions for reasons other than nonviability appear rare and BPMB applies its instruments with the necessary flexibility to accommodate those borrowers who cannot provide enough collateral or who are short of equity funds. To help the latter in particular, BPMB has recently launched a venture capital scheme. Feasibility and viability are BPMB's overriding criteria for project approval. This flexibility has not: led to a high rate of arrears.!1 In addition to financing, BPMB also provides prefinancing assistance such as project identification and entrepreneurial developrment, and postfinancing services such as follow-up and extension services for less advanced entrepreneurs. These services are packaged if required as part of BPMB's integrated approach. 2.19 BPMB's operational scope has so far been limited by shortage oE experienced staff, which can gradually be overcome, and by resource con- straints. So far only M$300 million has been allocated in the governmenl budget for the 1981-85 period, about M$200 million short of BPMB's estimated requirements. To take on the task of an expanded SSE program, 13PMB would require additional resources. In t:his context, BPMfB should be encouraged to take the initiative in raising resources, independent of, and in addition to, the budget allocations. Lacking a specific SSE focus, BPMB's SSE assistance has generally been limited to enterprises at the larger end of the SSE spectrum. Its recently instituted a venture capital scheme which, if vigorously implemented, would certainly help the less-advanCed SSEs to be brought into the mainstream of development. 1 BPMB considers only 27 projects, amounting to M$9 million, as critical; they are in arrears for more than three months. - 15 - 3. The Credit GutronA~CGC Bacikground 2.20 The major objectives of the Third Malaysia Plan were the eradi- cation of poverty and the restructuring of society through, inter alia, acquisition of skills, land and capital. Since these objectives could not be achieved by solely relying on specialized institutions such as MARA, BPMB and BPM, the commercial banks having extensive branch network and lending experience were requested to play a more active role in providing funds to Bumiputra and other small entrepreneurs. Commercial banks have tradition- ally been reluctant, however, to provide loans to SSEs due to the high risk involved, therefore, a Credit Guarantee Corporation (CGC) was launched in 1972 with the participation of Bank Negara. It started operations in 1973. So far only M$2.56 million of CGC's authorized capital of M$20 million has been subscribed by the commercial banks and Bank Negara. CGC employed 42 staff including 11 professionals at its head office and 4 branches in 1981. Guarantee Schemes 2.21 The Small Loans Guarantee Scheme _SLGS). CGC's original guarantee scheme provides a 60% guarantee coverage for loans to small entrepreneurs for fixed assets and working capital financing. Small loans not exceeding M$200,000 and M$100,000 for all viable and productive Bumiputra and non- Bumiputra projects, respectively, are eligible. No collateral is required for the first M$30,000 which may or may not be part of a larger loan facility. Corporate borrowers qualify under the SLGS, if their equity does not exceed M$200,000 for Bumiputra and M$100,000 for non-Bumiputra enterprises. CGC charges an annual fee of 0.5% of the outstanding value of each loan so guaranteed. 2.22 Special Loan Scheme (SLS). In January 1981, CGC expanded its guarantee coverage to collateral-free loans up to M$50,000 through the introduction of its special loan scheme (SLS). Such loans can also be part of a larger facility for fixed assets as well as working capital financing, not exceeding $250,000. In this context, the definition of small enterprises has been changed to cover all registered businesses with net assets up to M$250,000 or, in the case of limited companies, shareholders' funds of up to M$250,000. The interest rate is limited to 7.5% p.a. and CGC's guarantee fee of 0.5% p.a. must be absorbed by the lenders. However, participating banks are eligible for a tax rebate of 2% p.a. of the loan amounts, and borrowers can claim double deduction of interest payments from their income tax obligations. Moreover, loan documents qualify for a reduced stamp duty. Olperational Performance 2.23 During the past three years, CGC has experienced a decline in its total number of approvals for guarantee coverage from 9,638 loans (1978) to 6,103 loans (1980). Since its inception, CGC has guaranteed 53,947 loans - 16 - (net of cancellations) amounting to M$632 million./l As of December 31, 1980, total guaranteed loans outstanding amounted to M$340 million, accounting for 54% of total cumulative approvals. Business sector loans (for retail trade, general commerce, transport and construction) have dominated approvals, accounting for 64% by number and 73% by amount, followed by agriculture (30% by number and 18% by amount) and manufacturing industry (6% and 9%, respectively) for building materials, food products, furniture and timber-based products, etc. The bulk of all loans guaranteed by CGC was below M$30,000; they accounted for 94% and 69% of the total in terms of number and amount respectively (end-1980). Loans between M$30,000-100,000 accounted for 5% by number and 27% by amount, while loans from M$100,000-200,000 made up the insignificant balance. Claims Performance 2.24 Member banks had lodged 1,237 claims amounting to M$3.2 million by the end of 1980, accounting for 2.3% by number and 1% by amount of total guaranteed loans outstanding. Outstanding claims exceeded CGC's paid-up capital of M$2.56 million. Total settlements amounted to M$152,000 in 1980 for 59 loans as against M$27,000 in 1979 for 6 loans. Under the scheme member banks are also required to report regularly all doubtful accounts which may become future claims if the accounts prove uncollectable. The aggregate amount so reported to CGC, amounted to M$41 million or approximately 12% of the total value of guaranteed loans outstanding at the end of 1980. Prospects 2.25 Bank Negara issued new lending guidelines, effective April 1, 1981, which require each bank to extend at least 12% of its loans outstanding at the end of 1980 to small enterprises, from which 5% of total loans outstanding must be for loans under CGC's SLS. The deadline for compliance was December 31. The i-nitial response to the SLS has been encouraging and by June 1981 CGC had received nearly 1,000 guariantee applications for loans amounting to M$19 million. The bulk of these loans was for amounts below M$10,000 covering a wide cross-section of activities. Strengthening of CGC's Guarantee Mechanism 2.26 As of December 31, 1981, CGC had provideid guarantee coverage for around 10% of all outstanding loans from commercial banks to small businessess. Commercial banks have so far only been able to provide a small part of the total financial requirements of small businesses, not covering those cases which could not supply the necessary collateral. CGC was created to fill this gap and there is plenty of sciope for its expanded role in the future. However, to achieve this the following issue must be addressed. /1 Gross approvals before transfers out of the scheme and cancellations amounted to $862 million for /8,884 loans. - 17 - 2.27 Claims Procedures. CGC's collection procedures require member banks to start legal proceedings for all loans with an outstanding balance of M$5,000 or more until the borrowers and guarantors (if any) are adjudicated bankrupt. For loans below M$5,000, legal action is only required in 1 out of every 5 cases, although in any case the borrower must be served with at least one legal notice of demand. Many participating banks consider these requirements too rigid and time-consuming. As a consequence, they may not pursue their claims with CGC and may also also consider the CGC guarantee as ineffective. Consequently, they insist on stringent collateral requirements for financing, which many potential borrowers are unable to meet. 2.28 Capi_al Structure. CGC's capital of M$3.77 million comprising the paid-up capital of M$2.56 million, general reserve of M$1.0 million and retained earnings of M$0.2 million, is inadequate in view of its guarantee volume (para. 2.23), and actual and potential claims (para. 2.24). 2.29 Guarantee Fee. In view of the high risk of SSE financing and given the substantial amount of likely claims, the adequacy of CGC's guarantee fee of 0.5% p.a. requires scrutiny, notwithstanding its provisions for claims of M$6.38 million (3.1% of total possible claims). 2.30 Possible Innovations. In addition to less rigid claims settlement procedures, healthier capital structure and adequate guarantee fee, there are other possible innovations that deserve to be studied in this context. A graduated approach could, for instance, be envisaged that provides smaller borrowers with a larger guarantee coverage and vice versa. Furthermore, it no longer appears justified to deny the more specialized development institutions such as BPMB, BPM and MIDF access to CGC's guarantee coverage. Another area for study is whether CGC's role should by expanded by assuming the role of a collection agency for delinquent claims of their member banks until final liquidation of those claims. 2.31 Recognizing that CGC faces serious constraints in playing its supportive role of SSE financing, with the support of UNDP and World Bank, Bank Negara has initiated a study to analyze CGC's problems and identify adequate solutions. The report would be submitted to the Government in June 1982. 4. The Bank Pertanian Malaysia (BPM) Background 2.32 The Bank Pertanian Malaysia or Agricultural Bank was incorporated under the Bank Pertanian Act of 1969, which defines BPM's objectives as: (a) to promote sound agricultural development; (b) to provide loans and credits for agricultural development, production and marketing; and (c) to mobilize savings in and for the sector. BPM is a wholly government-owned corporation. It started operations in 1970 and extends short-, medium- and - 18 - long-term financing for the entire spectrum of agricultural activities including agribusiness. At the end of 1980, BPM had a total staff of 790, employed at the head office, 21 branches, 7 subbranches and 8 village units located throughout the country. Credit operations have grown at 43% p.a., with loan approvals increasing from M$17.4 million in 1974 to M$152.0 million in 1980. BPM has also been highly successful in mobilizing deposits which reached 78% of total liabilities in 1980. However, less than 5% resulted from the mobilization of rural savings, while the remaining 95% were funds deposited by public agencies. At the end of 1978, BPM's total assets of M$635 million, of which M$130 million and M$446 million were invested in loans and mainly short-term securities, were financed by time deposits (M$506 million), government loans (M$50 million), equity (M$41 million) and other funds (M$38 million). Arrears accounted for 26.4% of BPM's total portfolio at the end of 1978. Agribusiness and SSE Operations 2.33 Agribusiness financing has been BPM's third largest activity. At the end of 1980, over 870 agribusiness projects absorbed almost M$55 million, accounting for 4% and 8% in terms of number and amount of BPM's total approvals. The bulk of these loans (77%), however, were very small, not exceeding M$10,000, and loans up to M$50,000 accounted for 89% of the total number. Loans above M$100,000 made up only 6% of total approvals, but accounted for 84% by amount. For agribusiness loans, BPM has budgetted M$117 million for the 1981-85 period out of the total projected commitments of M$792 million. 2.34 BPM's definition of agribusiness loans is very flexible and comprises, according to its special agribusiness loan policy, all projects that are dependent on farms as a major market for their products or as a major source of their raw material inputs. While this policy does not establish any size criteria, "large loans" should not in aggregate exceed BPM's capital and should also not exceed 6% of the capital in each individual case. For agribusiness loans, BPM's interest rates in principle range from the current prime rate of 8.5% to 4.5% above the prime, though 10-14% was actually charged according to the merits of each case. Normally, loans have to be fully secured and BPM does not finance more than 80% cif project costs. Although these terms do not sound conducive to SSE financing, BPM is flexible with viable projects, whose sponsors would normally not meet the usual equity and collateral criteria. Operational Constraints to SSE Financing 2.35 During the past, BPM has financed a large number of small agri- business operations (para. 6) which presumably are agricultural operations rather than business or manufacturing operations./1 Hence, the number of /1 No subsectoral breakdown of agribusiness commitments was available. - 19 - projects other than those in agriculture have most likely not had any major impact on small enterprises in other sectors. This is not unusual in view of BPM's agricultural orientation. BPM has nevertheless a good basis for expanding SSE financing within the context of its agribusiness activity, since it is development-oriented and applies terms and conditions in a flexible way. On the other hand, it is constrained by its staff who have mainly agricultural background and may not be well suited to operations in other sectors. These limitations could be overcome if BPM created special Agribusiness Units at Headquarters and branch offices, and recruited staff with the necessary backgrounds to assist agribusiness operations which are not purely agricultural. BPM's agribusiness should also qualify for CGC's guarantee coverage as this would improve access of small clients with viable projects but insufficient collateral. At the Government's request, BPM introduced in January 1981 two new loan categories which are directly aimed at eliminating poverty and at restructuring society. Loans in the first categories, which also include agribusiness loans up to M$30,000, are extended at zero interest rates. The second category, which covers loans up to M$50,000 for all agricultural activities including agribusiness, are currently extended at 2% to borrowers irrespective of their poverty levels. BPM will be compensated for its loan administration costs through government grants. BPM anticipates that both categories will account for about 70% of its total projected lending volume during the 1981-85 period. In the light of this new approach, it appears doubtful that BPM can play a more dynamic role in small enterprise financing. 5. The Majlis Amanah Raayat (MARA) Background 2.36 The Majlis Amanah Raayat (or the Council for the Indigenous People) was established in 1960 by Act of Parliament, absorbing its predecessor, the Rural and Industrial Development Authority (RIDA). MARA's principal objective is to motivate, guide, train and assist Bumiputras, particularly those in rural areas, to enable them to participate more actively in commercial and industrial activities. This objective comprises the development of entrepreneurship among Bumiputras, increased Bumiputra ownership in equity capital and a greater share in employment at various levels of business. Guided by this objective, MARA implements, in line with the aims of NEP, the following programs: training and education, entrepreneurial development, business premises development, and investments. Target Group 2.37 MARA, now placed under the Ministry of National and Rural Develop- ment, is financed by the Federal Government in the form of direct grants as well as loans./l As of June 30, 1981 MARA employed a total staff of more than /1 Until recently (1981), MARA was placed under the Ministry of Public Enterprises. - 20 - 3,000. MARA's assistance, with financing not in excess of M$'50,OOO, is generally aimed at entrepreneurs with little or rio previous business exposure. It considers manufacturing enterprises as small when fixed assets excluding land are not in excess of M$250,000, regardless of the number of workers, and where the owner performs a wide range of functions. For enterprises other than those in manufacturing to be qualified as small, their capital funds and turnover should not exceed M$50,000 and M$1,000,000 respectively. Integrated Approach 2.38 MARA's assistance programs, covering training, entrepreneurial development, business premises development and financing are interrelated and MARA adopts an integrated strategy, focussed towards developing a viable Bumiputra business community. This approach comprises the identificat:ion and selection of potential entrepreneurs, the promotion of separately identified business opportunities and the financi.ng and counseling of successfully trained candidates until they are able to manage and operate their businesses successfully. Logistics 2.39 MARA's organizational setup reaches down to the grass-roots level, with branches in all 13 states of Malaysia, each headed by a State MARA Officer, who is responsible for executing and implementing MARA's programs in the state. MARA currently employs some 740 staff (144 at headquarters and 596 at branch level) to administer the Entrepreneur Development Programs (EDPs) of whom a majority are loan officers and around 87 are extension officers who assist borrowers in project implementation. Under its EDPs MARA finances both existing and new entrepreneurs, but limits its loans to M$50,000. MARA's credit facilities cover a broacl spectrum of commercial and industrial activities except agriculture, animal husbandry and fishery; they comprise the following programs: (a) working capital financijg with a duration not exceecling 5 years tor general business purposes, and for the purchase of stocks, office equipment and supplies; (b) fixed assets financing with a duration not exceeding 5 years tor the construction of workshops and for the purchase of machinery and equipment; (c) business car loans with maturities of between 3 to 5 years and a down-payment by the borrower of at least 10% for new vehicles and 33% for second-hand cars; (d) contractor loans provicling the necessary, working capital tor supplies and general purposes with maturities determined by the duration of the contract; and - 21 - (e) loans for professionals for the establishment of their firms, covering the acquisition of office equipment, inventories and working capital. For new entrepreneurs MARA also operates a soft loan scheme for amounts up to M$50,000 with extended maturities up to 10 years. Under this scheme, priority is given to projects in manufacturing and worker workshops. In 1980 MARA also introduced a term loan scheme for petty operators (e.g., haulers, stall owners, trisha drivers), to finance the acquisition of equipment; the loan amount is limited to M$2,000 in each case. 2.40 MARA currently charges interest rates of 5.5% for loans up to M$5,000 and 7% for loans above M$5,000. Applications for loans in excess of M$50,000 are forwarded to other specialized institutions such as BPM, BPMB and MIDF or to commercial banks. In extending its credit facilities, MARA takes an approach similar to that of other development banks, focussing on the viability of the project rather than on collateral. For its standard loan programs, MARA nevertheless requests borrowers to contribute 10% equity funds and to provide collateral in the form of machinery, land and two guarantors with reasonable earning capacity. MARA's development orientation and social objective, however, call for exceptions from this guideline to accommodate those borrowers who have viable projects but insufficient collateral and equity funds. Loan Operations 2.41 During the 1976-79 period, MARA approved an average of 3,600 loans annually, until the loan program for petty traders and other operators was introduced in 1980. As a consequence, loan approvals in 1980 have increased threefold to 11,500 loans, including some 9,000 petty loans /1. The annual volume has also grown substantially from M$11.8 million in 1976 to M$60.4 million in 1980, resulting in an increase of the average loan amount approved from around M$3,500 in 1976 to some M$17,000 in 1980./2 MARA's total loan portfolio as of March 31, 1981 stood at M$121.8 million for 32,800 loans, including approximately 15,000 petty loans. Loans to the trading sector have increased from M$8.5 million for 1,982 loans in 1979 to M$19.2 million for 7,187 loans in 1980 mainly due to the introduction of the petty loan scheme. The trading sector accounts for 33% by amount and 63% by number of total approval, followed by the construction sector with 30% and 12%, transportation with 23% and 7%, manufacturing with 8% and 11% and other services with 6% and 7%, respectively. Transportation projects had the largest average loan amount of around M$16,000, followed by construction projects M$13,000 and manufacturing projects only M$3,700. During the /1 As of December 31, 1980, MARA had received 16,000 applications for petty loans, of which 2,400, amounting to M$5 million, had so far been rejected. /2 Including around M$17 million for loans under the petty loan scheme. - 22 - 1981-85 period, MARA expects to approve a total of M$121 million for around 35,000 projects, including M$50 million (1,500 projects) under its entrepreneurial development scheme. Operational Constraints to Manufacturing SSI Financing 2.42 The trading, construction and transportation sectors absorbed the bulk of MARA's financial assistance, and manufacturing loans accounted for slightly less than 10% during the 1976-80 period. Given the close correlation between loan size, which amounted to some M$3,700 in 1980, and size of enterprise, MARA has apparently covered mostly small, cottage-type operations in rural areas. In its manufacturing operations, MARA appears to be constrained by the maximum loan limit of M$50,000. As such it cannot assist projects whose entrepreneurs have just overcome the rudimentary stage of entrepreneurship. According to MARA, however, such projects cannot sustain their perforance without MARA's continuied assistance. To ensure a more meaningful impact on manufacturing, MARA's maximum loan amount should be raised to around M$250,000 especially in view of the larger requirements for the acquisition of land, buildings, machinery and stocks. MARA is also seriously constrained in assisting manufacturing projects by its severe shortage of experienced extension workers. A large portion of its 16,000 loans (excluding those under the petty loan scheme), may require technical assistance, and MARA's 87 extension staff faces an almost insurmountable task. Regular visits and intensive counseling, however, would raise the number of successful operations and, at the same time, reduce MARA's very high rate of arrears. 6. The Malaysian Industrial Estates Sendirian Berha,d (MIEL) Background 2.43 The Malaysia Industrial Estates Sendirian Berhad (14IEL) was established in 1964 as a fully-owned subsidiary of MIDF, with the objective of constructing modern factory bouildings for sale and lease to small- and medium-scale entrepreneurs. For this purpose MLEL normally acquires part of the land in industrial estates or in free trade zones, develops the infrastructure, constructs the factory building and cooperatess with the respective municipal authorities. To relocate small and medium industries away from the crowded town areas, and to foster their growth in a less constrained environment, MIEL also launched in FY80/81 a factory relocation program. MIEL employed 25 staff including 12 professionals in 1981. Relevance for SSE Financing 2.44 MIEL tocusses on the construction of factory buildings within the reach of small- and medium-scale enterprises. While some of these buildings are sold for cash, MIEL also op(erates a factory mortgage scheme. Under this scheme, it provides financing with maturities of between 10-14 years including grace periods for the acquisition of ifactory buildings. Borrowers are expected to contribute betwesen 20-30% from their own resources, except - 23 - for Bumiputras whose down-payment need not exceed 10%. For its mortgage financing MIEL currently charges fixed interest rates of 8.5% from Bumiputras and 10% from others. Operational Performance 2.45 As of the end of March 1981, MIEL had constructed factory buildings in 19 locations throughout Malaysia, with particular emphasis on low-cost factory buildings in the less developed areas. To construct these buildings, MIEL has invested M$69.5 million, resulting in an average value of around M$130,000 per factory building. This amount compares with the most recent average value of M$198,000. During its 17 years of operation, MIEL recorded the establishment of 352 industrial projects with an incremental capital formation of M$189 million and job generation of 30,000. Export-oriented projects, mainly located in three Free Trade Zones, accounted for around 42% of total incremental employment. Resources and Financial Performance 2.46 In addition to its capitalization of M$20 million (March 31, 1981), MIEL has obtained a line of credit of M$37.5 million from its parent company, of which M$18.5 million was outstanding as of March 31, 1981. Maturities of the various branches of the credit line range from 10-15 years and interest rates from 6%-8%. MIEL-s financial structure and performance have been satisfactory throughout and its rate of arrears is negligible. 7. Other Institutional Programs 2.47 The Ministry of Culture, Youth and Sports. The Youth Division of the Ministry of Culture, Youth and Sports (MCYS) is engaged in a program to motivate, train and finance disadvantaged youth and to set them up in business. Participants in the program are encouraged to venture into business after they have obtained motivational and vocational training and have gained some 4-5 years of work experience. About 22% of the 5,740 candidates who have participated in the vocational training program have so far set up their own businesses. MCYS provides collateral-free loan financing up to M$30,000 but expects borrowers to finance part of the project cost from their own funds. MCYS loans do not carry any interest rate, but a 2% service charge is added on to the loan amount. After a grace period of six months, borrowers are required to start repaying of the loan out of their profits. In addition to loan financing, MCYS also provides extension services to assist the newly established enterprises. It has financed 636 projects during the 1976-80 period. The average loan amount was around M$14,500. In addition to this scheme, MCYS also operates a lending program for petty traders and retailers under which it has extended another 640 loans during the 1978-80 period with an average loan amount of about M$1,400. Both programs have so far had 770 failures for which the loans have had to be written off. M$24 million has been allocated under the Fourth Malaysia Plan (1981-85) for MCYS's small business loan program. - 24 - MCYS's financial support and technical assistance programs for disadvantaged youth appear to overlap with those of MARA. It, therefore, appears appropriate to merge MCYS financial and technical assistance functions with MARA's programs to avoid costly duplication. Youth inclined to go into business, who have undertaken MCYS's motivational and vocational training and have gained the necessary work experience, could be referred to MARA for financing under a comparable program. 2.48 The Kedah SSE Development Scheme. The Government has recently launched a development program for SSEs in Malaysia's State of Kedah to reduce migration and poverty in rural areas by absorbing labor displaced by farm mechanization. Participants will receive motivational and practical training at the program sponsor's own production facilities. After their skills have been sufficiently developed and they are considered ready to conduct business independently, participants will be encouraged to operate their own production units/enterprises. The program is based on the concept of using local raw materials such as rattan, clay and wood. Instruction will be given in operating intermediate-technology-level machinery to replace artisan and handicraft practices. 2.49 A Management Company (MC) has recently been set up by the Government to operate the SSE development program. This company, which has been established under the Companies Act, is controlled by the Kedah State Development Corporation. Its Board of Directors includes the Mentri Besar (Minister of the State) and several other state officials. MC's major functions comprise the motivation and training of potential entrepreneurs in its own production units, several of which are in the process of being established and equipped with machinery and materials. MC is prepared to turn these production units over to the participants or assist them in establishing their own units/enterprises (perhaps on a turn-key basis), when they have gained the necessary experience. In this context, MC also intends to restructure those villages where it establishes production units to ensure efficient operations. 2.50 Marketing and technical assistance will be provided as an integral part of the program by two large foreign firms in the ceramics and wood products sectors. While their participation is on an experimental basis, they are genuinely interested in establishing subcontractors who would supply the necessary products to meet overseas demand. In addition to training and technical assistance, they are also prepared to ensure that their subcontractors apply sound production practices and quality control measures which would allow them gradually to increase the size of their contracts for the participating SSEs. MC is confident that its partnership can be expanded beyond these two firms, to increase the program's impact in terms of product range and SSE participation. Around M$307 million has been earmarked to cover the program's financial requirements during the FMP, 80% of which will be a grant and the remainder a soft loan at an interest of 4%. Grant money will be essential in the initial phase of the project, tco cover MC's expenditure. After about five years, however, MC is expected tco generate enough income from its intermediary services to cover its cost. - 25 - ANNEX III. MAJOR PROGRAMS OF TECHNICAL ASSISTANCE TO SMALL-SCALE ENTERPRISES 1. Majlis Amanah Rakyut (MARA) 3.01 MARA provides an integrated program of financial assistance, group training, advisory and counseling services, improvement of business sites. and project feasibility, market and sectoral studies. It has the largest and most comprehensive technical assistance (TA) staff and program in Malaysia. It maintains offices in every state and administrative district of the country. The Entrepreneurial Development Division (EDD) was created in 1979 by merging its Loan, Enterprise Development, and Advisory Services Divisions to bring these services together in order to provide bumiputra with an integrated "one stop" service. A total of 650 personnel including 200 loan officers, 50 senior extension officers with specialized expertise work at the state level, and about 400 training and advisory officers are assiged to MARA's 52 district officers. Entrepreneur Training 3.02 From 1970 to 1975 about 250 training courses with 9,831 participants were held. During 1976 to 1980 period this effort increased to 953 courses with 33,381 individuals in attendance. MARA is further stepping up this effort in 1981 to 1985 with a goal of 1,202 courses for 43,212 potential and existing entrepreneurs. Current training programs include preliminary seminars to select entrepreeneurs followed by a Trade and Industrial Preparation (TIP) course, and a variety of management, finance, marketing, construction and sectoral courses. In 1979, 35% of 155 graduates of the TIP course who were followed up established their own businesses. Advisory Services 3.03 MARA's extension officers are engaged in providing a broad spectrum of advisory services including all business formation and start-up matters; and on the functional areas of operation such as accounting and finance, engineering and production, sales and marketing, general management and secretaryship. Table Al provides perspective on the type of advisory help which was provided to an estimated 5,900 clients during recent years. Although MARA has the largest officer staff in Malaysia with knowledge of all of the functional areas of business and some sectoral expertise, there is an occasional need for specialized consulting talent. MARA has budgeted M$1,000,000 for the 1981-85 period to engage professional consultants to supplement its staff where necessary. While MARA indicates that there is "very little interaction between officers in the public sector," it does turn to SIRIM and other agencies for specialized technical help. I - 26 - Table Al: ADVISORY SERVICES PROVIDED BY MARA, 1974-80 (June) 1980 Subject 1974 1975, 1976 1977 1978 1979 (June) Total Accounting 748 752 380 338 580 631 585 4,014 Carpentry (wood products) 366 537 453 275 506 424 220 2,781 Commercial design 65 117 39 47 46 197 96 607 Co. secretaryship 163 239 173 233 173 207 214 1,402 Construction 20 1C 6 9 9 236 144 443 Engineering/ technical 54 133 63 107 284 278 279 1,198 Marketing 46 517 657 1,069 74 176 244 2,783 Total 1,462 2,314 1,771 2,078 1,672 2,149 1,782 1.3,228 Note: NPC had been providing EDIP training for a fee. In 1979 MARA reassumed a substantial part of its client. training to improve results. MARA will continue to use MIDFIC, SIRIM, and other organizations for specialized training work. - 27 - Limitations and Needs 3.04 MARA has expressed the need for added services for bumiputra and it has noted limitations of its TA program that should be addressed: (a) Technological. MARA has not been able to obtain adequate technological support from outside sources, and it does not have sufficient internal resources to satisfy the needs of SSE development. Adequate appropriate technology is not available. MARA has indicated a "need to set up a technological center to be set up dealing with the latest technological developments." It is MARA's position that a computer is needed to store and disseminate this information./l (b) Marketing. MARA indicates that inadequate marketing facilities and channels for manufacturing SSIs exist. It has proposed that marketing and trade arrangements be established for SSI; and that "trade commissions abroad should have separate units for small scale products." MARA has contracted to provide bread and military uniforms to the government; and it has distributed subcontracts among SSIs. It indicates that a better system for allocating government purchases to SSE is needed. MARA advocates the promotion of subcontracting to SSI "by giving tax rebates to the larger industries that subcontract a greater proportion of the value added to small scale units." (c) Extension Officers. A number of MARA extension officers are inexperienced and inadequately trained. As a result, they lack credibility with entrepreneurs. Pay is too low and staff turnover is high. In order to try to overcome this problem, MARA has allocated M$4,752,000 for a staff training center during the 1981 to 1985 period./2 In addition, MARA has stated "officers specialized and experienced in the fields of promotion of small- scale industries should be retained at all costs." /1 SIRIM has expressed the same concern and need. It is the view of the mission that this need should be met by placing an in-house computer facility for technology storage and dissemination in SIRIM and that SIRIM's extension staff be strengthened to link that information center to the field. /2 Extension officer deficiencies are a very serious problem among all of the agencies which are providing TA. The overall problem may be best addressed by establishing a centralized extension officer training center to meet the needs of several government agencies. On individual basis these various programs would not be as cost-effective as those organized and executed on a collective basis. - 28 - (d) Evaluation. Adequate methods for the evaluation of MARA's TA efforts need to be developed. Currently quantitative measurements of services rendered are utilized; but little is attempted of a qualitative nature./l 2. National P'roductivity Center (NPC) 3.05 The National Productivity Center (NPC) was established in 1962 as a joint project of the United Nations (special fund) and the Malaysian Government. In 1966 the Parliament passed the National Productivity Council Act and the Council became an autonomous body. I'he members of the council are appointed by the Minister of Trade and Industry and the council appoints a Director to head the NPC. The Director has a deputy director who is in charge of training and another who is responsible for NPC's consultancy work. NPC's technical assistance efforts for SSEs have been centered on training. During recent years, it has determined that training is not very effective without follow-up with on-site consultancy. Thus, NPC contemplates a much larger, more comprehensive consultancy program for SSE in the near term future. Training 3.06 Although NPC has offered a variety of training courses, seminars, and workshops on both the functions of SSE management and on sectoral specialization, most of NPC's training work has been done with its Entrepreneur Development Program I (EPD-I.) This course, whic:h required full time attendance over a two week period is di.vided into the following components: Topic Days Motivation 2 Sales & Marketing 3 Accounting 3 Project Preparation 3 EDP-I is taught in Bahasa, Chinese and English and it is offered by NPC's five regional offices. About 85,010 of the participants have been bumiputra and 80% of them were interested :in retail trade. Participants are provided by sponsoring agencies such as MARA, MCYSYD, and BPMB. Most sponsoring /1 Again, this is a universal problem among agencies that are oroviding TA. A common system which w:ill allow comparable measurements is nieeded. - 29 - agencies pay most of the M$465 fee.Il Table A2 provides an overview of EDP-I during recent years. It will be seen from Table A2 that the percent- age of "Entrepreneurs Created" by EDPI is going downward. NPC is concerned about this trend. It has instituted some changes in the course; and it anticipates more careful screening. EDPI has been evaluated by partici- pants. (This does not provide a measurement of value, but precise measure- ment of TA quality is very difficult.) The results are shown in Table A3. In September 1981, NPC started providing a series of 15 different one-day workshops for a fee of M$10 per person. Two or three of these workshops are planned for each month. Consultancy - Extension Work 3.07 Prior to the Third Malaysian Plan (1976-1980) NPC was engaged only in training. During 1976-1980 period, the follow-up extension officer staff was created. NPC divides its extension work into advisory services which average about 3 man hours and into consultancy work which may take as much as several hours a week for two to three or more months to complete. There are no fees for NPC advisory services and consulting fees are very nominal. For example, these fees may be only M$50-100 for a bumiputra major consultancy project. Two hundred thirty-nine advisory services were rendered in 1977 and 1,001 were provided in 1978. Fifty-one consultancy projects were undertaken during 1976-80. Every participant of NPC's EDP training programs is followed up. There is no charge for follow-up work. If no potential for growth or establishing a business is apparent, the follow-up is terminated after two visits. In July 1981, NPC initiated a 36 month follow-up program. This is an extensive program and involves an examination of an entrepreneur's entire accounting and record systems, instructions in financial management, assistance in project studies and preparing loan papers, and all the monitoring of the dispersal and use of the loan proceeds. During the next five years, NPC expects to train 10,000 existing and potential entrepreneurs. It plans to upgrade 900 of the participating existing businesses from that group, and expects to create 700 new entrepreneurs. If this follow-up program is implemented, it will entail a massive amount of extension work. Other Services for SSE 3.08 In addition to standard follow-up and consultancy services, NPC provides a Management Research Information Service which furnishes informa- tion such as potential export business to SSE, the type and quantity of products manufactured in Malaysia, and a wide variety of other information. At present, NPC is developing an Entrepreneur Information Center which will have an extensive data bank, including studies on business sectors. /1 NPC plans to provide special EPDs which are sectorally oriented for those sponsored by the Development Bank and MARA. These will be held during the evenings. The clients will pay half of the M$500 fee. - 30 - Table A2: NPC's ENTREPRENE1JR DEVELOPMENT PROGRAM I, 1976-80 1976 1977 1978 1979 1980/a Total No. % No. % No. % No. % No. % No. Courses 27 - 120 - 116 - 98 - 121 - 482 - Participants 661 100 3,036 100 2,890 100 2,597 100 2,328 100 11,512 100 Entrepreneurs 206 31 1,174 39 956 33 840 32 673 29 3,849 33 Prospective entrepreneurs 455 69 1,862 61 1,934 67 1,757 68 1,655 71 7,663 67 Entrepreneurs created (from prospective entrepreneurs) 119 26 327 18 87 5 155 9 36/b 2 724 9 /a Data for 1980 incomplete. Thirty-three course files are still in regional offices. The total number of courses (121) is correct but the participants are expected to exceed 3,000. /b These data are through June 1980. Table A3: EDP-I EVALUATION BY PARTICIPANTS (X of total participants) Program 1976 19/7 1978 1979 1980 component E VG G LG P E VG G LG P E Vc G LG P R VG G LG P E VG G LG P Motivation 17.2 48.0 32.0 2.8 0.0 19.1 42.8 35.6 2.5 0.5 21.7 42.6 34.4 1.3 0.0 24.2 43.7 31.4 0.7 0.0 25.7 44.5 29.1 0.7 0.0 Sales & marketing 11.1 44.6 41.1 3.0 0.2 17.3 40.8 39.6 2.1 0.2 14.2 39.3 44.0 2.2 0.3 15.8 38.8 43.6 1.5 0.3 16.5 39.9 40.9 2.6 0.1 Accounting 11.1 35.2 42.8 9.4 1.5 18.1 39.3 36.6 5.2 0.8 16.2 37.2 41.7 4.7 0.2 16.8 38.8 39.5 4.4 0.5 19.4 37.7 37.8 4.3 0.8 Project paper 10.9 36.9 39.2 11.6 1.5 16.6 37.4 40.4 4.7 1.3 16.4 34.8 42.3 5.6 0.9 17.4 36.4 39.8 5.5 0.9 18.2 35.3 40.0 5.9 0.6 Note: E = excellent, VG = very good, G = good, LG = less good, and P = poor. - 32 - Budget 3.09 The NPC budget for 1982 will be M$10 mil:Lion, of which approximately M$5 million will be utilized for EDP. As noted earlier, a substantial charge is made for the bulk of the training work (ED)P-I) which has brought in significant funds, and token charges are levied for major consultancy work. Originally it wcls planned that NPC would receive government financial support until it became self-supporting./l Training-Consultancy Staff 3.10 NPC currently has 35 training officer positions, of which 27 are filled. The consultancy division has positions for 50 extension officers with 32 filled. A majority of the extension officers are located at headquarters. The geographic dispersion of field extension off:Lcers (who are also engaged in training) follows: Table A4: NUMBER OF FIELD EXTENSION OFFICERS IN NPC Positions Positions filled Regional office allocated October ]L981 Penang 3 2 Johor Baharu 2 1 Kuantan 4 3 Kuehing, Sarawak 3 1 Kota Kinabalu, Sabah 3 2 Total 15 9 NPC wants to add field offices in Kota Bharu, Kelantan and the state of Keda in 1982. Meantime, a decision has been reached to transfer all of the field extension officers back to headquarters and to handle all consulting work from the central office in order to overcome some of the inadequacies of the present staff. The field offices will continue to do training but they will not do consultancy work in 1982. Current limitations of the present extension officers can be placed in perspective by noting that iLt is necessary to assign two or three of'ficers to each consulting case to help to make up for their inexperience and limitations. This, coupled with the staff size and post vacancies, limit the volume of extension work that: can be effectively accomplished. Most of the training and extension officers have honor degrees, (one year of academic work beyond a general degree) in /1 With a substantial inter-agency government funds transfer taking place between sponsoring agencies and NPC, the likelihood of' NPC becoming self-supporting from non-government ftnds sources iLs little. - 33 - economics and the sciences. NPC plans to employ more engineers and they expect to add on an economist as a project director, two retail trade specialists, and one each of the following specialists: woodworking, auto repair, electrical-electronic and food specialists. A total of about 100 training and extension officers, many of which will have expertise in given industries, will be added during the next two years. Turnover among extension officers has been high but currently it has been reduced to about 10%. The pay level of ordinary officers was increased from about M$850 per month to M$1,000 per month. All field employees provide their own autos; but NPC arranges attractive loans and pays mileage. In addition to its own training and consultancy staff, NPC has foreign specialists to augment its personnel. During the 1980- 1983 period, the German government is providing 240 man-months of specialized help. 3.11 NPC has devised a series of four short Courses for Development Officers (CDO) to strengthen its present training and extension officer staff. These four courses, which wil require a total of 60 days to complete, will be spread over one year. In July 1981, NPC announced a five-year "Officer Training and Development Scheme" to address the problem of inadequate extension officers. During the initial years, formal training by the NPC staff and specialists from universities will be supplemented by study tours. Officers will work as well as study during this period. An opportunity to study for Masters and PhD degrees will be a part of the advanced stage of the program. A progressive career advancement path is planned to go through the stages of trainer consultant, researcher, information giver, communicator and promoter to administrator. An annual budget of M$569,500 has been projected for the extension officer training program. Limitations and Needs 3.12 The inadequacies and turnover of the extension officer staff are major problems of NPC, while its "Officers Training and Development Scheme" has many advantages, it may not be the best way to solve the problem. Moreover, many of the participants of NPC training programs are selected by other agencies. The proportion of entrepreneurs "created" during recent years has been declining. NPC is aware of this matter and is developing screening methods. Finally, the design of the three-year " follow-up" program, adopted in July 1981, seems to be a supply side aproach to provide consultancy services. Although there is room in the NPC program for deviation from the plan, the consultancy needs of entrepreneurs vary so greatly that extension officers given a patterned approach may attempt to apply it to the extent that some problems are given too little attention and others are given too much. Without practical experience to provide perspective, the approach may become overly pedantic. - 34 - 3. Ministry of Culture, Youth and Sports-Youth Division (MCYSYD) 3.13 The Youth Division of the Ministry of Culture, Youth and Sports (MCYSYD) is engaged in motivating, training and financing unemployed, disadvantaged youths to go into business in their home villages. These businesses tend to be very small with a heavy concentration on petty trading and retailing (61%), followed by services (31%), small industry (6%) and agro-based industry (2%). During the 1978-80 period loans were made by MCYSYD schools. After 4 to 5 years working experience, these entrepreneurs may be sent to NPC-s EDP-I. Most MCYSYD entrepreneurs start in business at age 23 to 25. A small capital investment by the entrepreneur is required; but loans up to $30,000 at no interest may be made by MCYSYD. A 2% service charge is added to the principal amount borrowed. No collateral or cosign- ers are required. A grace period of at least 6 months is allowed on repay- ments; and then payments of 30% profits is required. During the 1976-80 period 636 commerce and industry loans, averaging M$14,447 each, were made. A total of 640 small trader loans were also made during 1978-80, which aver- aged M$1,363 each. The following Table A5 provides a geographic and sectoral breakdown of the types of business which were created by the MCYSYD through its youth in business program. During th,e Fourth Malaysia Plan M$24 million has been allocated by MCYSYD for small business loans. Korbena, a National Youth Cooperative, sponsored by the Ministry and controlled by a board which is partly appointed by the Ministry and partly elected by the youth organizations, serves as a buying agency for the machinery of new enterprises. Extension Worker Staff 3.14 There are 36 extension workers who provide consultancy to existing and potential entrepreneurs. In addition, 112 diistrict officers provide help to entrepreneurs as a part of their overall work. Ten senior level extension officers are located at the headquarters. Each of t!hese is assigned two or threestates. Two of the remaining 26 extension officers are assigned to each of the individuaL states. The state extension officers are engaged in both loan collection and counseling work. They wor'k with clients on preparing project papers, help to process the Ministry-s loans or aid the client in getting a MARA or commeircial bank loan. They also work with MARA and UDA in obtaiing business premises for clients. The field extension officers and district officers occasionally call on MARA extension officers for help, especially when a client wants to expand. The Federal Marketing Authority-s field workers provide marketing assisitance with agro-based products. Local and state author:Lties are called on for licensing help and for aid with getting sites approved. Although MCYSYD has lost 4 of its 10 senior extension officers and 3 of its 26 state extension officers during the last 2 years, (mostly to better government positions), turnover has not, in their view, been excessive. - 35 - Table A5: GEOGRAPHIC AND SECTORAL DISPERSION OF NEW ENTERPRISES ESTABLISHED UNDER THE YOUTH IN BUSINESS PROGRAM, 1976-80/a Enterprises Small Agro-based Services Retail industry industry Total No. of No. of Amount Proj- Proj- Proj- Proj- proj- entre- jobs loaned States ect % ect % ect % ect % ect preneurs created (M$'000) Perlis 16 51.6 6 19.4 8 25.8 1 3.2 31 50 103 331 Kedah 39 59.1 10 15.2 14 21.2 3 4.5 66 75 210 848 Pulau Pinang 26 59.1 6 13.6 9 20.5 3 6.8 44 65 148 652 Perak 24 52.2 14 30.4 5 10.9 3 6.5 46 63 134 692 Selangor 40 75.5 5 9.4 5 9.4 3 5.7 53 86 194 962 Wilayah Persekutuan 17 47.2 15 41.7 4 11.1 - - 36 77 167 906 Negeri Sembilan 16 45.7 9 25.7 7 20.0 3 8.6 35 38 128 566 Melaka 23 74.2 3 9.7 5 16.1 - - 31 34 105 495 Johor 40 66.7 10 16.6 6 10.0 4 6.7 60 68 224 855 Pahang 30 68.2 9 20.4 4 9.1 1 2.3 44 54 119 623 Trengganu 39 62.9 14 22.6 9 14.5 - - 62 72 171 751 Kelantan 59 79.7 6 8.1 6 8.1 3 4.1 74 86 185 734 Sabah 13 72.2 3 16.6 1 5.6 1 5.6 18 21 50 257 Sarawak 25 69.4 9 25.0 1 2.8 1 2.8 36 37 136 534 Total 407 64.0 119 18.7 84 13.2 26 4.1 636 826 2,074 9,207 /a This table does not include petty traders which numbered 640 in the 1978 to 1980 period. Loans to petty traders were M$872,501. It should also be noted that a small number of businesses were financed by external sources of capital. - 36 - Current Developments 3.15 Under the Fourth Malaysia Plan, the Ministry is setting up a Youth Entrepreneur Development Institute (YEDI). A six month business training program will be provided to teach business skills to those who have finished vocational school and have some working experience. Tuition, room and board will be provided without charge. The first group of students is now enrolled in this program. In addition to developing entrepreneurs, the Ministry intends to train commercial workers in clerical, typing, and stenographic skills in YEDI. Land has been acquired at a cost of $2 million and a building which will cost $12-15 million is planned for the Institute. Limitations and Needs 3.16 According to MCYSYD it needs the following for its SSE develcpment program: a building for the YEDI (funds are tentatively available); more extension officers and training for present extension staff; external consulting to help to review and develop the SSE development program; and feasibility studies to help determine appropriate new areas of business enterprises that should be developed. 4. Malaysian Entrepreneurial Development Center (MEDEC) 3.17 The Malaysian Entrepren,eurial Development Center (MEDEC) was established at the MARA Institute of Technology (ITM) in 1975. It was established to produce highly motivated, knowledgable, efficient entrepreneurs. This was to be accomplished through extensive training, research, and follow-up. The most important aspect of MEDEC's work is its Entrepreneurial Development Program (EDP). MEDEC has three forms of EDP courses. Two of these are basically the same. T'he first EDP, which has dominated the effort, is a three-month training exercise which meets 5 nights a week from 7:30 to 9:30 p.m. The second form of EDP is a full time, 8:00 a.m. to 5:00 p.m. one-month program for participants that reside on campus during the course. MEDEC intended to conduct this course twice a year; but faculty and financial constraints limited it to just once a year. The third form of EDP is structured for ITM students who have an interest in entrepreneurship. It is designed to create an awareness of business oppor- tunities and to develop entrepreneurial characteristics. It provides basic business training for students wh,o attend 2 hours per week for 2-1/2 years. This EDP is named Kembara Usahawan (KEMUSA). It covers the same general range of topics as the other EDP's cover, but the motivation and interest aspects are tailored for the student participants. EDP topics include the following: "Roadmap" for setting up business, Project selection, Market survey, Achievement motivation, Accounting, Costing, Finance, Marketing, Loan procedure, Credit control, Company formation, Preparation of a Working Paper, Business game, Guest entrepreneurs, and Small business managemernt. 3.18 MEDEC concentrates only on highly qualified participants for its EDP programs. The charge for EDP courses is M$350 which is paid by the - 37 - participants, and substantial time is required. Those who do apply are required to complete an extensive 14 page admission application which is accompanied by a non-refundable fee. About half the applicants are interviewed by a panel which is made up of two bankers and two MEDEC staff members. A maximum of 25 applicants are selected for each course. Through September 1981, a total of 220 individuals have participated in it. Table A6: MEDEC's EDP PARTICIPANTS, AS OF SEPTEMBER 30, 1981 Number of Number of Participants that EDP Number of established potential established business no. participants entrepreneurs entrepreneurs No. % 1 24 4 20 12 60.0 2 22 4 18 10 55.6 3 22 2 20 8 40.0 4 15 2 13 7 53.9 5 17 3 14 10 71.4 6 14 4 10 6 60.0 7 20 5 15 11 73.3 8 18 7 11 10 90.9 9 24 9 14 15 100.0 10 20 6 14 13 92.9 11 24 10 14 14 100.0 Total 220 56 164 118 72.0 3.19 Those graduates which formed businesses after participating in EDP selected the following types of businesses: Types of business started % EDP Retail trade 34.6 Services 28.7 Wholesale trade 14.8 Construction 11.9 Manufacturing 5.0 Agri-business 4.0 Mining 1.0 Total 100.0 - 38 - It will be noted that the percentage of potential entrepreneurs that went into business after EDP has been high and increasing. In one sense, the MEDEC achievement is remarkable; however, it must be viewed in its proper context. The screening process is so thorough that only the most likely candidates for entrepreneurship are allowed to participate in EDP at MEDEC. Field Extension Services 3.20 The MEDEC faculty do the follow-up work on most course participants. ITM has campuses in Perlis, Premeganu, Sarawak and Sabah. Faculty on those campuses and who are MEDEC associates do the follow-up on EDP participants in the respective areas. At present the teaching staff in MEDEC has only six members. At one time there were ten faculty members, however, the work is demanding and some instructors left MEDEC for private sector positions. MEDEC would like to expand to other parts of the country; but the shortages of instructors does not make that practical. It would take two to three years to train instructors for expansion. Budget 3.21 MEDEC's budget is shown below: Budget Year (M$) 1979 369,200 1980 242,500 1981 617,119 1982 505,860 A budget of M$1,600,000 was requested for 1982, but only one third of that amount was allocated to MEDEC. Limitations and Needs of MEDEC 3.22 MEDEC would like to expand their work to other ITM campuses. The following would be required: a larger budget allocation; a larger teaching staff; overseas training for the teaching staff; and additional audio visual equipment and materials. - 39 - 5. Pernas Edar Sdn. Bhd. (PE) 3.23 Pernas Edar (PE) was created in 1974 as a subsidiary of the Pernas Group to aid in the development of bumiputra retail grocers in West Malaysia. PE is capitalized for M$10 million and is 100% owned by the Pernas Group which was founded by Bank Negara. The Pernas Group is under the Prime Minister's Department. During 1980 PE had sales of M$76 million and for the first time it made a small profit. Sales are expected to reach M$91 million in 1981 and profits again are expected. The primary functions of PE are to serve as a primary wholesale supplier to bumiputra grocery retailers; and to suply financial and technical assistance. About 4,000 retailers buy from PE on a regular basis and over 4,400 were registered at mid 1981. In addition to serving existing retailers, PE develops new bumiputra entrepreneurs. For example, 73 new traders were established in the first 7 months of 1981. Among the reasons for establishing PE was to make good quality merchandise available at competitive wholesale prices to bumiputra retailers. That group had been experiencing difficulty with prices and delivery of goods; and it was very difficult for some who wanted to enter the field to develop supply sources. Currently PE supplies about 60% of its client's requirements through 30 wholesale depots on a cash and carry basis. It is noteworthy that all other efforts by the federal and state governments to establish viable trading operations of the type in which PE is engaged have failed. Part of PE's success can be attributed to efforts of its Chief Executive Officer and to its General Manager both of whom joined PE during recent years after successful business careers in the private sector. Although PE is a wholesaler, it aids privately owned bumiputra wholesalers. Help is contingent upon these wholesalers providing quality goods, good service and competitive prices to the retailers. Training Courses 3.24 PE holds evening seminars and one day training courses for its retailers. There are no charges for these programs. Two PE staff members are assigned to this activity. During the January-July 1981 period, 44 training courses in merchandising, management and accounting were held for 409 participants. In addition 4 open houses were held for clients. Field Extension Work 3.25 During the January-July 1981 time period, the field officer extension staff worked with 3,006 traders who were under their supervision in semiurban and rural areas. Extension officers made a total of 8,616 visits on those traders. Over half of these clients (1,673) wre under close supervision to help them advance further or overcome serious problems. Although PE does not make loans, its extension officers aid in project studies and loan application preparation for its registered traders. During the January-July 1981 period 233 applications were presented of which 114 or 49% had been funded within the following three months. The average value of the loans granted was M$6,880. Loans are obtained by clients from - 40 - commercial banks, MARA and the Ministry of Culture, Youth and1 Sports. PE provides promotional items such as T-shirts, bicycles and a variety of products without charge to some traders to help them attract customers. Considerable effort has been exlpended to upgrade trader shops. PE can contribute 30-40% of the cost of modernization (up to M$2,000) to grocery retailers who want to participate in this program. Bank Bum:Lputra and MARA provide loans to finance the balance. PE extension work in peninsula Malaysia is divided into four zones. A regionaL extension manager oversees the work in each zone. He is aided in the supervisionn of the extension officers by a senior extension officer. There are 52 extension officers, up from 42 years ago; but more are needed. PE has experienced dlifficulty in obtaining and keeping good quality extension ofEicers. Their average age is 22 to 23 years, so inexperience is a problem. Present trainLng for extension workers is 2-3 weeks. The salary of extension offLcers, is approximately $700 a month, and they are paid by the Prime MLnister's Department, not by PE. It has been determined that a salary range of $1,200-1,500 a month will be necessary if more mature, better prepared extension workers are to be engaged and kept. Most of the PE staff are malay. PE has found that Malay clients respond better to MaLay PE staff members. At present PE has no method of ealuating work of ilts extension officers. Limitations and Needs 3.26 The extension officer staff is inexperienced and too small to carry out its functions effectively. The staff needs to be increased by 50 to 75% during the next 2-3 years and better training is needed. Moreover, extension officer turnover is high. Higher pay for better qualified personnel should improve effectiveness; and it should be a cost-effective move. Finally, a system for evaluating the qualitative aspects of PE training and extension work is needed. 6. Bank Pembangunan Malaysia Berhad (BPMB) 3.27 BPMB has an aggressive SSE development program. Ilt engages in entrepreneur development, training, lending and consulting. This integrated program (FA plus TA) provides for well rounded, efficient development work. Unlike a commercial bank, the loan officers provide a substantial amount of TA as part of their servicing work. In 1981 BPMB launched its Entrepreneur- ial Development Program. The program provides training, financial aid (loans), advisory and management services. Training courses and followup work is done in cooperation with MARA, NPC and MEDEC. NPC held two specially designed EDP training programs for 50 BPMB selected participants in February and August 1981, and MEDEC held three EDP courses for 69 BPMB participants through August 1981. A ratio of approximately 2 established to 1 prospective entrepreneur participated in these training courses. Table A7 provides a breakdown of BPMB's EDPs for the 1981-985 period: - 41 - Table A7: BPMB's ENTREPRENEUR DEVELOPMENT PROGRAM, 1981-85 Details 1981 1982 1983 1984 1985 Total 1. Number of Courses/Program (i) Program conducted directly by BPMB (with the cooperation of NPC, MARA, etc. or individually) (a) in K.L./P.Jaya 2 3 4 4 4 17 (b) Outside K.L. & P.Jaya/ Regional Office area - 2 3 3 3 11 Subtotal 2 5 7 7 7 28 (ii) EDP courses organized by NEDEC 4 4 4 4 4 20 Total Number of Course/Programs 6 9 11 11 11 48 2. Number of Participants (i) Program conducted directly by BPMB @ 30 participants/program 60 150 210 210 210 840 (ii) Courses organized by MEDEC @ 20 participants 80 80 80 80 80 400 Total Number of Participants 140 230 290 290 290 1,240 3. Estimated number of active participants needing follow-up services from the EDP (in the form of advisory services and consultations for the purposes of planning & implementation of projects). % of total number of participants 25 35 45 55 60 47 Number 35 80 131 159 174 579 4. Participants who succeeded in getting financial facilities from BPMB (i) Venture capital 5 15 30 35 35 120 (ii) Ordinary loan scheme 3 5 10 11 11 40 Total 8 20 40 46 46 160 - 42 - 3.28 BPMB had only four extension officers on its consulting staff by October 1981. Two more will be added in 1981 and. three more in 1982. This group will work closely with NPC, MARA and MEDEC personnel to provide aLn integrated approach to entrepreneurial development. BPMB has experienced trouble engaging experienced advisory officers; and the turnover has been high. At present it is not publicizing its adivisory services because of a shortage ot personnel. 3.29 BPMB has devised an excellent system fc,r monitoring each client's financial progress, management arnd marketing systems; and for tracking the client's production facilties. Comments on various aspects of the operation are recorded along with recommenclations and the actions which are taken on those recommendations. These will be computerizetd. It is also planned to provide clients with computerized financial statements and analyses. 3.30 BPMB has developed a unique sales unit to assist in selling iits client products. The unit is successful in marketing products which are produced by non-clients as well. Many of the products which P,PMB sells are food products. Sales had reachecd approximately M$100,000 per month by October 1981. Plans are being formulated to use the sales unit to market Malaysian products in foreign cotntries. This is expected to provide an important new export marketing channel for small and medium industry in Malaysia. 7. Standards and Industrial Research Institute of Malaysia (SIRIM) 3.31 SIRIM was established i-n 1975 through a merger of the Standards institute of Malaysi and the National Institute for Scientific and Industrial Research. It is headed by a council of 24 members who are appointed by the Minister of Science, Technology and Environment. SIR:tM headquarters are located in Selangor. One branch is situated in Trengganu and another is located in East Malaysia. 3.32 SSIs in 'Malaysia can call on SIRIM which is engaged in the development of standards, quality control, testing, process development, design, research, and the promotiLon of health and safety in industrial enterprises. Its Industrial Consultancy Serice D)ivision (ICSI)) provides these services through: consultancy and extension officers (on-site); enquiry Service (letter answering); information dissemination (publications, reports, courses and semina-rs), an-d techiologica:L demonstration (at SIRIM or on site). 3.33 Organizatins such as MARA, MIDFIC, NPC, BPMB and MEI)EC refer clients that have technical prob:Lems and projects to SIRIM. S'IRIM charges for its services at a rate of about 10% of the usual commercial charges. For a typical 10 dav assignment., S-IRIM charges may be M$200-300. About 10% of SIRIM's budget comes from fees. Table A8 provides a breakdown of part of SIRIM's field extension work for the 1976-1980 period. About 40% of SIRIM's - 43 - work is with Small and Medium Scale Industry (SMI). In addition to consulting projects, SIRIM initiates plant visits to selected industrial subsectors. For example, during the 1978-80 time period SIRIM visited about 500 metal products industry plants. About 65% of SIRIM field work is done for bumiputra-owned enterprises. Table A8: NUMBER OF SIRIM's SMI ON-SITE CONSULTING PROJECTS, 1976-80 Industry by size /a 1976 1977 1978 1979 1980 Total Small 6 13 55 52 50 176 Medium 10 30 7 8 4 59 Total 16 43 62 60 54 235 /a Small scale = capital investment excluding land and buildings less than M$250,000, and medium scale = over M$250,000 where no test facilities exist. 3.34 As noted, SIRIM, receives referrals from other agencies. Because agencies such as MARA, NPC, MIDFIC, BPMB and others that do consultancy work for SMI do not have sophisticated technological resources, it is vital that they have a close working relationship with SIRIM. Otherwise there will be a serious void in the nation's program for SSI development. Table A9 provides insight into the sources and volume of SIRIMWs SMI inquiries. It should be noted that inquiries from other agenices totalled only 129 over the five year 1976-1980 period. It is also noteworthy that such inquiries have been falling off from the peak year of 1978. This decline may be caused by the scant involvement of other agencies with SSI; or it may be influenced by SIRIM's inability to provide appropriate technology to SSI. Other reasons may be a lack of good publicity to SSI about SIRIM's services; or the fees which SIRIM charges (though modest) may be discouraging SSI. Although reasons for the limited usage of SIRIM's services are not known, the matter should be studied and corrective measures adopted. - 44 - Table A9: SOURCE; OF SIRIM INQUIRIES, 1976-80 Source 1976, 1977 1978 1979 1980 l'otal Individuals and tiny industry 11 10 3 7 24 55 Small- and medium-scale industry 11 13 21 32 27 104 Other agencies 7 23 38 36 25 129 Total 29 46 62 75 76 288 Staff 3.35 SIRIM has a staff of approximately 200 graduate engineers, scientists and industrial economists. Five of these have Ph.D degrees and about 25 have masters degrees. About 50% of the SIRIM professional staff obtained their advanced degrees with government grants. These individuals are required to stay with the governemnt from 5 to 15 years after comp:Leting their academic work as a condition of their grant; therefore, turnover is not excessive. The professionals are supplemented by a supporting staf-f of approximately 500. Ten extension officers make up SIRIM's field consu:Lting staff. These individuals have the following types of expertise: 2 Food Technologists; 1 Polymer Chemist; 1 Chemist; 3 Mechanical Engineers; 1 Electrical Engineer, and 2 Industrial Engineers. When other expertise is needed, the extension officers call on other members of the SI]RIM professional staff for help. Training Programs 3.36 Since 1979, SIRIM has been conductinng a variety of courses, seminars,. nd-workshops. Some are for large industry; but some are suitable for SSIs also. A variety of subjects, such as quality control, low cost automation, instrumentation, standards, design and others are covered. Courses are offered 3 to 4 times each year for a fee of M$150--250. Since 1979 about 300 individuals have attended SIRIM courses. Most of these have been from large and medium scale industry. Workshops for training techniciaAe-are jointly presented by SIRIM, industry, and universities. MARA, NPC and other government agencies cooperate to provide participants. There are usually 5 to 10 particLpants in each of the 35 to 40 annual workshops. No evaluation system has been designed for SIRIM's extension and training work. - 45 - Publications 3.37 SIRIM publishes a technical journal which is entitled ALIRAN Technologi. This Journal covers a variety fo subjects including trends in energy process and product development, food technology, pollution and waste treatment, standards and quality assurance, testing, and management. This journal, which is published 3 to 4 times a year, is sent to 600-700 individuals and organizations. Other dissemination efforts include industry studies and technical pamphlets which are issued monthly. Budget 3.38 The SIRIM budget for 1981 included M$8 million for development work and M$10 million for operations. In 1982, M$10 million and M$14 million, respectively, for development work and operations have been allocated. Limitations and Needs 3.39 In-house electronic data processing and retrieval capability is needed to obtain and store foreign sources of technology. (SIRIM is now a member of Technonet and should be linked up with other sources of technology.) The computor is also needed for the assembly and storage of domestic technology. It would also have much use in providing SMI design services. Moreover, if SIRIM is to substantially increase its volume of work with SMI, an effort to increase its acquisition, development and delivery of appropriate technology will be necessary. Finally, if the quantity of extension work is to be increased to a level which is consistent with the present size of Malaysian industry, the field consultancy staff should be substantially increased. 8. MIDF Industrial Consultants (MIDFIC) 3.40 MIDFIC was established in 1971 as a wholly owned subsidiary of MIDF to supplement MIDF's financial assistance with TA. The benefits of an integrated FA-TA program were anticipated. As part of a commercial organization, it was deemed necessary for MIDFIC to charge for its consulting services. This has not been successful with SSE clients. Many small clients cannot afford the fee, others do not recognize the need for TA and still others who had contracted for consulting work with MIDFIC have refused to pay. As a result, MIDFIC has discontinued a consulting service with SSE. It will provide TA for MIDF loan clients; and MIDFIC will continue to provide training and make industry studies for government agencies that provide TA to SSE. Staff 3.41 MIDFIC has a staff of 17 professials including the general manager. There are 5 economists, 2 marketing, 2 management and 4 financial and accounting specialists on the consulting staff. Technical consulting - 46 - is looked after by 2 engineers. Two of the staff are women. Seven Chinese, six Malays and four Indians are on the consulting staff. Turnover was quite high among MIDFIC consultants during the initial years of operation but it has slowed somewhat in recent years. During the last five years, MIDFIC lost about 25 professional staff members. Turnover has been about 30%-35% per year. Table AIO below provides perspective o the MIDFIC pay schedule for consultants. MIDFIC has found that consultants with graduate degrees (masters) do not stay as long as people with a single degree. Although its consultants are paid somewhat better than government workers, it has accepted turnover as a usual part of the operation. Table A10: MIDFIC CONSULTANTS- MONTHLY PAY Starting pay Pay after 4-5 Background (M$) years (M$) Diploma holders 800-900 1,200-1,300 Economist degree holder 1,000-1,100 1,600-1,800 Engineer 1,200-1,300 1,900-2,000 Training Courses 3.42 MIDF's training division has two officers who provide training for finance officers and aid MIDFIC with courses for other organizations. MIDF's Bumiputra Division has two types of training programs. One is for prospective entrepreneurs and the other is for existing businessmen. These programs are introduced by sessions on management perspectives followed by studies of management skills, and concluded with a treatment of management systems. 3.43 MIDFIC conducts training courses on specific industrial subsecotrs for government agencies for a charge of M$3,600 for a five-day course with up to 30 participants. From January-October 1980, MIDFIC conducted a series of ten courses for 192 contractors which were sponsored by MARA. A system of participants- feedback was used to evaluate these courses. Most of the participants rated the various elements of the courses satisfactory or sufficient. During the 1979-81 (September) period MIDFIC offered 29 training courses for MARA's 629 participants, of whom 66% attended construction courses. 9. Other Institutions 3.44 There are a number of other government institutions which have TA programs or elements of TA programs. Becuase these efforts are very small or less significant than those which have been discussed, they have not been included in this annex. - 47 - ANNEX IV: RATIONALE FOR THE PROPOSED STRENGTHENING OF THE SMALL ENTERPRISES DEVELOPMENT DIVISION OF THE MINISTRY OF TRADE AND INDUSTRY 1. Introduction 4.01 In the mission's judgment viable solutions to the problems facing SSE development in Malaysia can partly be tackled by providing an effective organizational framework to undertake those aspects of SSE promotion effort which are essential but have not received adequate attention so far: research and planning, formulation of appropriate policies, development of human resources for TA, designing complementary programs, coordinating internal and external resources, and monitoring and evaluating the programs. Consequently, the mission suggests improvements in the support programs along the lines mentioned below./l These suggestions do not involve much expansion but rather aim at consolidation, integration and adoption of a common approach to solving the critical problems of SSEs and realizing their potential in the Malaysian economy. 4.02 Present organizations such as MARA, BPMB, MCYSYD, PE and others currently have significant social welfare and economic development programs for bumiputra-owned, small-scale enterprise. In section "3" of this Annex, the mission has identified those parts of these programs which should be reinforced and strengthened. The general organizational structures for Bumiputras engaged in trading and some servicing sectors have, however, been created and are operating reasonably well. 4.03 For the most part, the work of developing small-scale manufacturing industries (SSIs), and assisting relatively large firms within the SSE category, has not received sufficient attention. It is suggested that the present organizational framework be modified and developed to give needed attention to manufacturing SSIs and to other neglected components of SSEs which appear to have a substantial potential for growth. In the mission's judgment it is essential that MARA and other primary programs for bumiputra development not be diluted by changing their orientation, but that comprehensive changes in the existing framework be introduced elsewhere to make the whole system of SSE support develop in a balanced, integrated and complementary but more importantly in an efficient and effective way. 4.04 With the above-stated objective to retain the integrity and purposefulness of the bumiputra-oriented framework that now exists, the mission does not think it desirable to place the added essential tasks with their stronger economic orientation within one of the agencies which are /1 Given the importance of the incentives and policy framework, Chapter 3 is especially devoted to a discussion of those issues. -- 48 - currently dedicated to welfare-cum-economic service to Bumiputras. Conse-- quently, it determined that the most: suitable location within the existing government structure is within the Ministry of Trade and Industry (MTI). Because of the scope and importance of this effort, it is recommended that: the Ministry of Trade and Industry's Small Enterprises Division (MTISED) be gradually upgraded to a department level by combining some existing programs with it and adding other essential functions mentioned above. It, is recommended that the enlarged organization be headed by a person who has a strong background in private sector business management and knowledge of government. In the following discussions, the reorganized division will be referred to as the Ministry of Trade and Industry, Small-Scale Enterprise Department (MTISSED)./1 4.05 A major purpose of the specific recommendations made in the main report is to illustrate how exactly the critical but: hitherto unattended problems of research and planning and policy formulation, the need for coordination of development programs, inadequacies of resources aLnd program deficiencies and of monitoring and evaluating of TA efforts can be met with the minimum necessary modifications and adjustments in the existing organizational structure for SSE support. The following section provides the basis and rationale for suggestions to modifying the functions and organizational structure of the present MTISED into the proposed MTISSED. 2. Rationale for the Suggested Changes in MTISED 4.06 (a) The new Small Enterprises Division (SED) of the MTI has already established some of the objectives which the mission has included in the modified MTISSED organization. The MTISSED concept is an expansion of the SED program and an elevation of SED within the MTI corganization. It avoids the creation of a new, free-standing unit of government. (b) The Ministry of Trade and Industry has the primary responsibility for developing trade and industry in, Malaysia, the work has been recommended for MTISSED to carry out as part of that primary responsibility. (c) By placing the Small-Scale Enterprise Department (SSED) in the MTI and creating the Coordination Division in it to serve as secretariat of the Coordination Committee for Development of Small Enterprises (CCDSE), the proposal should provide the much needed major human and program resources within an integrated framework to make CCDSE more viable. If the new elements of the MTISSED programs were placed in another organization(s) they would not be as readily accessible to /1 Although the primary purpose of developing MTISSED would be to provide a mechanism for much more comprehensive SSE development, it would have a firm commitment to provide services to existing bumiputra-oriented programs to strengthen their efforts among bumiputras. This perspective should be kept in view as the description of the new elements are reviewed. - 49 - CCDSE and its secretariat. Lack of such arrangements was one of the major reasons for the failure of the previous coordinating efforts. (d) By placing the new programs elements in MTI rather than in one of the organizations which primarily are devoted to bumiputra development, it avoids diluting the efforts of those organizations and confusing their clear-cut objectives. In addition, it places the new program elements under a Ministry which has a strong economic orientation rather than placing them in an organization which is more social-oriented. (e) As noted in (a) above, the SED of MTI already has adopted some of the MTISSED program elements. NPC, which also falls under the general umbrella of MTI, has other key elements of the program. Moving the entrepreneurship training and follow-up work from one place to another under that umbrella is less difficult than would be a major restructuring or the movement of other government institutions. 4.07 As noted earlier, NPC now engages in training programs primarily for bumiputras which are sponsored by other agencies. It is intended that this work continue and be improved. The expansion of a single element (training) to serve a broader audience should not be misconstrued to be a d,ilution of the bumiputra development effort. There is a difference between expanding a single element of a program and reorienting an entire organization like MARA. Furthermore, MARA and other organizations have substantial training programs of their own. For example, MARA is in the process of expanding its EDP training for bumiputras to take over some of the training work which previously has been done by NPC. These factors led the mission to determine that the amalgamation of a part of NPC-s work on behalf of SSEs would be advantageous rather than detrimental to bumiputra development work. Alternative Possible Solutions 4.08 In arriving at the above recommendation, a number of alternative solutions were considered. Some of these had little merit. Others had better possibilities. The solution which has been suggested above is in the view of the mission, the most effective and practicable. A sketch of some of the alternatives, which were considered, follows: (a) Create a large, new, free-standing organization to deliver an integrated program of TA and FA to SSEs. This was dis- missed because with the given shortage of skilled personnel, it would neither be desirable nor effective, but above all much of the needed structure already exists. It would also compound the problem of excessive program proliferation. (b) Expand MARA to carry out all of the programs which have been recommended for entrepreneurs of all parts of the society in urban as well as rural areas. As previously noted, this may - 50 - fragment MARA's focus; and it would require that its present present socio-economic orientation be redirected. Thle probable result either would be to dilute its present efforts with rural bumiputras or to neglect the new work -- none of which would be desirable. (c) Expand BPMB to provide the broad scope of TA which has been suggested for the MTISSED programs. There is merit in bringing FA and TA together under one umbrella organization. However, BPMB is a development lbank with the stated primary objective "to develop, increase and accelerate the active participation of bumiputra entrepreneurs in the industrial and business sectors of the economy." If BPMB were assigned the broader role of developing all SSEs, it would be departing Erom its primary objective. As previously stated, the current effort with bumiputras should be continued and strengthened./l The primary objectives of BPMB should not be diffused or changed. The new resources which would be developed in MTISSED should indeed 'be used by BPMB and a close working relationship estab:Lished with the CCDSE, its suggested secretariat, and the proposed Coordination Division of MTISSED. (d) Expand CGC to provide l:he broad TA program which has been sketched for MTISSED. This wou:Ld also offer the advantage of bringing TA organizationally closer to the FA which is provided by commercial banks under the CGC's SSE loan guarantee schemes. While there is some merit in this concept, it should be noted that CGC presently has none of the TA elements of the program which are needed for the overall SSE development. While some of these, such as the NPC training and extension programs, could be transferred to CGC, those programs would be removed from their present close relationship with the Ministry of Trade and Industry, and placed in a less logical place from an overall organizational viewpoint. It was concluded that the concept of using CGC as a program foundation should be discarded, because it currently has neither TA or direct FA components, and it is organizationally badly located for the new SSEI development thrust. Also, even to perform more effectively its established role, CGC needs further study and reorganization that are currently underway. /1 The mission feels that it does not pay dividends in increased national well being to take development resources from one unfinished program and apply them to another unless the first program is unproductive or deserves a lower priority. T'hus, it has been recommended that the new economic development efforts for SSEs be designed to strengthen the existing efforts for bumiputra development. - 51 - (e) Pernas-Edar at first glance seems to be an illogical choice for the new thrust because of its narrow orientation to the bumiputra grocery subsector. Even though it has the advantage of being part of the Pernas Group which falls under the Prime Minister's (PM) office and wields influence which could help to develop the resources needed to carry out the overall development of SSEs, the concept was dismissed for several reasons. Placing it under the PM could imply that it was more important than existing bumiputra programs which are less strategically located in the Government. Next, PE primarily is dedicated to bumiputra development, and dilution of that effort is not suggested. Finally, the specialized targets of PE would make it necessary to build virtually all of the added TA thrust anew. (f) MIDF was considered as a possibility for a major overall SSE development effort. It has the advantages of existing FA pro- grams, consulting being available through its subsidiary MIDFIC, and sites can be made available through its MIEL operation. However, the MIDF objective to be a financially viable commercial operation precludes the possibility of carrying out long-term SSE development work from which fees will not flow in any significant quantity./l Funding must be a government budget item. (g) MEDEC was not considered suitable because it is an educational institution with the objective of creating and training entrepreneurs. It is very small. If MEDEC were used, it would mean virtually starting anew to create the organization and programs which have been recommended. Furthermore, organiza- tionally it is not well-located in the government structure to use for building a major SSE component. 3. Strengthening of Other SSE Development Organizations 4.09 The need to strengthen the TA components of the SSE development programs of principal bumiputra-oriented organizations like MARA, MCYSYD, /1 A nation can invest in SSE development work with the expectancy that over the long-term taxes will offset the investment to a degree; and that the overall economic development impact improves the social and political environment which is desirable for the country. If a program such as the one which has been sketched were put into a commercial corporation like MIDF, it would reorient the commercial effort to the degree that the organization would in effect become a government agency. - 52 - BPMB, and PE was stressed in the overview of those organizations' programs. The discussion below sketches briefly the areas in which these organiza- tions need support to improve their efficiency and effectiveness./l There are a number of other government institutions which have elements of TA programs but they have not been covered in the discussion below because their efforts are very small and insignificant. Majlis Amanal Raayut (MARA) 4.10 MARA is a unique 'one-stop' agency for the development of tiny or traditional enterprises and is involved in dispensing loans, extending advisory services and developing entrepreneurship especially among the rural bumiputras. In order to improve its efficiency and effectiveness it needs: (a) greater access to adequate technological support together with means to store and disseminate this information, (b) help in improving marketing assistance to enterprises it has promoted, (c) support in improving the experience and training of extension officers./2 MARA also needs adequate methods to evaluate its TA efforts./3 National Productivity Center (NPC) 4.11 Training efforts of NPC to SSEs have had limited effectiveness because they lacked follow-up wit'h on-site consultancy. The percentage of "entrepreneurs created" by Entrepreneurship Development Program I( .EDP I) have trended down. NPC's three-year follow-up program, introduced in July 1981 looks overly ambitious in view of the severe inadequacies and turnover of the extension officers and gre,at variation in the need of entrepreneurs. Some of the most critical needs are to: (a) realign its present training approach to an enterprise needs-oriented approach to consultancy, (b) have a more adequate and appropriately trained supply of experienced extension officers, and (c) better screening of participants in entrepreneurship training programs and in-depth interaction with t'hem together with effective use of follow-up programs. Most of these basic problems would be tackled in the framework of the reorganized TA appraoch to SSE discussed in Chapter 5 of the main report. /1 A detailed discussion of the institutional coverage and approach of these organizations is given -at in Annexes II and III of this report. /2 Extension officer deficiencies are a very serious problem among all the agencies involved in providing TA. That is why the mission has sugges- ted a centralized extension officers training center as a part of MTISSED. /3 Again, this is a universal problem among agencies that are providing TA. A common system which would allow comparable measurements is needed. - 53 - Ministry of Culture, Youth and Sports - Youth Division (MCYSYD) 4.12 MCYSYD is engaged in an interesting socio-economic task to moti- vate, train and finance the unemployed, disadvantaged young persons, mostly Bumiputras, to go into petty trading and retailing in their home villages. The Ministry is setting up a Youth Entrepreneurship Development Institute (YEDI) to provide a six-month business training program to those who have finished vocational school and have some working experience. The new institute needs premises. MCYSYD also needs: (a) more and better trained extension workers; (b) external consultancy help to review and develop the purposeful SSE development programs; and (c) feasibility studies to help determine appropriate new areas of business activity that should be developed. The mission's proposals to strengthen the MTISSED are also designed to provide effective support to MCYSYD type of program. Malaysian Entrepreneurial Development Center (MEDEC) 4.13 MEDEC's entrepreneurship development program is quite different from those of NPCs. It offers short-term evening programs or longer residential programs. The percentage of new enterpreneurs who went into business after EDP has been high (over 50%) and increasing. MEDEC's trainers are carefully screened, interviewed by a panel of two bankers and two MEDEC staff and a maximum of 25 participants are selected. MEDEC urgently needs to expand the number and training of its staff (currently six members), audio-visual equipment and materials, and requires a larger budget. Pernas-Edar Sdn. Bhd (PE) 4.14 Pernas-Edar is already serving about 4,000 bumiputra retailers and is providing a sizeable supply source to bumiputra grocers who were finding it difficult on their own. Its two top executives have had successful careers in the private sector. Pernas-Edar could become even more successful and effective if it would increase the experience and number of its extension staff and retain its better qualified staff. It also needs to institute a monitoring and evaluating system for the work of its extension staff. Bank Pembanguanan Malaysia Berhad (BPMB) 4.15 BPMB has an active, integrated program for SSE development that covers entrepreneurship development, training, lending and consulting. It has a very good system of monitoring each client's financial, management and marketing progress and has a unique sales unit to assist in selling its clients' products. Its extension staff remains small (six by end-1981) and like most other TA efforts, it has faced trouble in engaging and retaining high quality, experienced staff. BPMB is primarily a lending institution and its lending operations are discussed in Chapter 4 of the main report. - 54 - MIDF Industrial Consultancy (MIDFIC) 4.16 MIDFIC has not been successful with its SSE clients because many cannot afford the fee, others do not recognize the need for TA and still others who had contracted for consulting work have had sluggish payments and high defaults. As a result MIDFIC has decided to discontinue its direct consulting services to SSEs. It will continue to provide TA for MIDF loan clients, training for government agencies that provide TA for SSEs and carry out industry studies for them. MIDFIC-s role in promoting SSEs can be improved by reducing the impediments it faces through a mechanism of "on call" consultants discussed in the previous section. Standards and Industrial Research Institute of Malaysia (SIRIM) 4.17 Manufacturing SSIs can call on SIRIM's help for product design and testing, process development, plant layout, machinery design and selection, production engineering, quality control and technical information. In most cases SIRIM receives referrals from other agencies such as MARA, NPC, BPMB, MIDFIC, MEDEC. In general, SIRIM's ability to meet the needs of SSIs is limited, and no evaluation system has been designed for SIRIM's extension and training work. It is necessary to strengthen SIRIM and reinforce its resources if it is to remain a principal source of technology in the country and be involved more actively in supporting and accelerating the development of SSIs. In particular, it would need the following: (a) in-house electronic facilities to store and process and retrieve domestic and foreign technology; (b) better information dissemination resources so that more tech- nical data be distributed to manufacturing SSIs; (c) additional resources to acquire and develop a larger body of appropriate technology and, in cooperation with those who can replicate it, provide it to SSIs on a. commercial and larger scale. Perhaps some mobile units would be needed to cover larger rural areas and specialized activities in those areas; (d) increase in its field extension staff to handle a workload which is commensurate with the consulting requiremLents of an accelerated SSI development effort; and (e) funding of individual. SSI consulting assignments (where expensive) through the External Consulting Divisicon program of MTISSED as discussed above. - 55 - ANNEX V: SOME SUGGESTIONS FOR FOLLOW-UP STUDIES 5.01 It is apparent from the Main Report and its Annexes that the evidence, analysis and interpretation of results relating to the SSEs were severely constrained due to a wide 'information gap'. While the studies proposed to be undertaken by the Government under the UNDP/IBRD Project would considerably strengthen the information base, especially regarding the manufacturing SSIs, many other studies will be required to build up adequate information on SSEs. The following studies are suggested to develop a better understanding of the current status of SSEs and effectiveness of the ongoing support programs and impact of the existing or changed government policies on SSEs in Malaysia. Because there are a number of studies with varying significance, it will be useful for the Government to assign prioprities to them. Training Programs 5.02 As noted in the Main Report (especially in Chapter 5), there is a proliferation of training programs in various fields including entrepre- neurial development, functional areas (such as accounting, marketing and management), as well as in sectoral and subsectoral-oriented courses for the operation of businesses such as construction, rice milling, etc. It was not feasible for the mission to study them in-depth, but preliminary ideas are offered for Government's consideration. For instance, the rationale and exact context of the various training programs and their contents should be examined more carefully. Also the quality of the instructional staff to carry out the training programs needs to be evaluated. Once the courses are catalogued and evaluated, the inadequacy should be judged in relation to the needs of the target group(s). This is a vital step, it implies that training programs should be designed to best satisfy the needs of the market. Moreover, the effectiveness of the programs should be ascertained through periodic evaluation./2 /1 In addition to the suggestions for the follow-up studies made here, many more suggestions are integrated in the rest of the report. Readers' attention is drawn particularly to the following: (a) the need for improving the data base (paras. 1.08 and 1.13 along with their footnotes in Annex I, Volume III); and (b) the economic viability of subcontracting (paras. 3.13 and 6.12, Volume II). /2 It is doubtful if any substantive work has been done in this area. It appears that when MARA got dissatisfied with NPC's EDP work, it started its own in 1979; though NPC continues to provide special EDPs to BPMB's clients. MEDEC seems to pursue quite a different approach to EDP training than the rest. Although it is reasonable to assume that variations in courses may be desirable for target groups with different needs, the Malaysian circumstances indicate a lack of basic information on which course differences can be properly established. - 56 - 5.03 The mission has suggested that the NPC staff should be strengthened to more effectively carry out its; present EDP entrepreneurial as well as new training programs for larger SSEs including manufacturing SSIs. It is suggested that NPC may work with a consultant to develop criteria for evaluating the present training and extension worker staff. This exercise should have the objective of providing information for improv:Lng its training and extension work. Appropriate Technology 5.04 It was suggested in Main Report (Chapter 5) that SIRIM be provided with the added resources which will be necessary to acquire and develop a larger body of appropriate technology to support thie development of manufacturing SSIs. Before enhancing the body of appropriate technology, it will be necessary to have a clear understanding of the SSI subsectors which need technological assistance (MARA and other agencies are familiar mostly with the general needs), and it will also be necessary to assign priorities among SSI subsectors for an accelerated growth during the 1980s. The current level of tec'hnology in some subsectors has already been determined. For example, the Technonet Study, "Small and Medium Scale Metal Working Industries," provides an analysis of the average technology levels in various segments of that subsector. SIRIM should now evaluate its fund of appropriate technology for small-scale metal working industries and identify the additional requirements. Government Procurement 5.05 The Treasury Department provided the mission with sufficient general information on the government procurement from SSEs. In order to develop a detailed plan for a more extensive SSE-oriented government procurement program, it would be helpful if a detailed analysis of the procurement from SSEs during recent years is done. This should include procurements by all ministries and agencies of the central government: information on the products and services procured, description of each agency procurement procedures (practices) and internal organization for handling such procurements (who does it), role of agents, value of each contract, and an evaluation of the results. Problems and limitations that have been encountered could be used in developing more comprehensive and effective Government procurement guidelines. Finance 5.06 As mentioned in Chapter 4, no estimates of demand for credit by SSEs were available. While indirect estimates (based on secondary sources) can be prepared for corporate sector having firms with published balance sheets and other financial statements, for SSEs having limited formal financial statements, such estimates are likely to involve a special sample survey. This sample survey should include, intetr alia, issues regarding - 57 - long-term and short-term financing, interest rate, availability of and access to credit, collateral and adequacy of accounts. Virtually nothing is known about the nature and size of the informal credit market and financing through trade/commercial credits. Some case studies need to be conducted to ascertain the extent of financing through these channels./l Similarly, virtually nothing is known about the quality of bank portfolios (with the exception of BPMB), and Bank Negara should examine the issue and develop systematic procedure for this purpose. At the same time, Bank Negara should also gather some additional information from commercial banks and finance companies, such as terms of lending. It is understandable that the Government wants to provide funds to SSEs at a subsidized rate. It would, however, be useful for the Government to assess the cost of these subsidies so that the anticipated benefits may be better appreciated in relation to their costs. Research and Planning 5.07 In Chapter 5 (see subsections on Research and Planning, and Size Standard) of the Main Report, it was recommended that studies be conducted to determine the role of SSEs in the Malaysian economy, and to identify sectors and subsectors most suitable for priority development. These studies are needed if certain SSE subsectors are selected for special development effort and subsector-specific TA programs are to be developed. It will also be necessary to establish long-term objectives for a geographic dispersion of SSEs. While the needs of rural bumiputra should continue to be addressed, priority ranking and selectivity would be more cost effective. During the selection process the scope for subscontracting should also be carefully looked into, inter alia, in the auto-assembly, metal working, and rubber industries. By targeting on a few subsectors for integrated FA and TA inputs, the support programs will have high productivity. /1 Studies of the informal or unorganized credit market have been sponsored by the World Bank. See T.A. Timberg and C.V. Aiyar, Informal Credit Markets in India, and Yung Chul Park, Unorganized Financial Sector in Korea, 1945-75 (Public and Private Finance Division, Development Economics Department, the World Bank, Washington, D.C., May 1980 and November 1976). - 58 - Table 1.1: MALAYSIA: GROSS DOMESTIC PRODUCT BY ECONOMIC ACTIVITY IN PRODUCERS' VALUE AT CONSTANT PRICES (1970=100) FOR 1971, 1973, 1978, 1980 AND 1990 DOS MOF FliP Sectors 1971 1973 1978Tc 1980 1980 1990 ------------ Level in M$ Million ------------- Manufacturing 1,858 2,508 4,081 5,054 5,374 15,121 Wholesale & retail trade 1,579 1,874 2,563) 3,276 3,295 7,279 Hotels & restaurants 138 164 261) Construction 541 651 918 1,195 1,186 2,938 Mining & quarrying 834 852 1,054 1,193 1,214 1,863 Transport, storage & communications 632 827 1,415 1,667 1,696 3,834 Subtotal 5,582 6,876 10,292 12,385 12,765 31,035 Agriculture, livestock, forestry, logging & fishing 3,852 4,634 5,610 6,172 5,809 8,193 Finance, insurance, real estate & business services 1,126 1,311 1,823 2,122 2,155 4,629 Government services /a 1,466 1,810 2,831 3,406 3,398 8,044 Others /b 990 1,273 1,708 2,033 1,991 4,873 GDP in purchasers' value 13,016 15,904 22,264 26,118 26,118 .56760 GNP at factor cost 10,794 12,884 17,794 Structure (%) Annual growth rate (%) 1971 1980 1990 73-78 71- 80 80-90 Manufacturing 14.3 19.4 26.6 10.2 11.2. 11.6 Wtholesale & retail trade 12.1} 12.5 12.8 6.5}6.8 7.4 8.3 Hotels & restaurants 1.1) 9.71 Construction 4.2 4.6 5.2 7.1 9.2 9.4 Mining & quarrying 6.4 4.6 3.3 4.3 4.1 4.6 Transport, storage & communications 4.9 6.4 6.8 11.3 11.4 8.7 Subtotal 42.9 47.4 54.7 8.4 9.3 9.6 Agriculture, livestock, forestry, logging & fishing 29.6 23.6 14.4 3.9 5.4 2.9 Finance, insurance, real estate & business services /a 8.7 8.1 8.2 6.8 7.3 8.1 Government services 11.3 13.0 14.2 9.4 9.8 9.0 Others /b 7.6 7.8 8.6 6.1 8.i 9.1 GDP in purchasers' value 1C0.0 100.0 100.0 7.0 8.0 8.1 /a Include owner-occupied dwellirLgs. lb Includes electricity, gas & water; community, social & personal services; less imputed bank service charges; domestic service of householcls; and import duties. /c Preliminary. Sources: For years 1971, 1973 & 1978 (DOS): National Accounts Stat:istics, 1971-77 and 1973-1978 (Department of Statistics, Governmelnt of Malaysia, Kuala Lumpur, 1979 & 1981). For years 1980 (MOF): Economic Report, 1981/82 (Ministry of Finance, Government of Mlalaysia, Kuala Lumpur, 1981). For years 1980 and 1990 (FMP): Fourth Mala sia Plan 1981--1985 (Government of Malaysia, Kuala Lumpur, 1981). - 59 - Table 1.2: MALAYSIA: TOTAL EMPLOYMENT BY MAJOR SECTORS, 1970, 1973, 1978 and 1980 FMP MOF ES /c Sectors 1970 1980 1973 1978 1973 1978 ___- (000)… Manufacturing 386 803 382 710 304* 406* (298) (378) Wholesale & retail trade, hotels & restaurants 371 648 471/b 640/b 333/d 365* (276) (312) Construction 137 263 127 228 108/e 161/e (98) (147) Mining & quarrying 89 90 87 89 60 56 Transport, storage & communications 115 193 160 180 (33) (50) Agriculture, forestry & fishing 1,715 2,067 1,857 2,026 Finance, insurance, real estate & business services 31 52 /b /b (13) (21) Government services 397 710 467 636 Other services 155/a 268/a 184/b 250/b Total 3,396 5,094 3,735 4,759 * Mission's estimate. /a Includes electricity, gas & water. /b Finance & insurance included with trade, but hotels are included with "other services," which consist of distributive trades such as hotels, cinemas, and shipping services. /c Establishment Survey (ES) estimates are invariably lower than the Ministry of Finance/Fourth Malaysia Plan estimates which are said to be based on the labor force survey results. Figures in ( ) correspond only to a segment of the sector against which it is recorded. /d Includes catering; wholesale and retail trade data refers to 1974. /e Includes housing developers, real estate agents, architects and surveyors. Sources: Years 1970 & 1980 (FMP): Fourth Malaysia Plan 1981-1985, op. cit. (Table 9.2). Years 1973 & 1978 (MOF): Economic Report, 1979/80 and 1981/82, op. cit., (Table 6.1). Years 1973 & 1978 (ES): Establishment surveys conducted by the Department of Statistics. See the following Tables 2.1 & 2.2 for details. - 60 - Table 1.3: MALAYSIA: GROWTH IN NUMBER OF REGISTERED FIRMS (SOLE PROPRIETORSHIP AND PARTNERSHIP), 1966-1980 Malay Chinese Indian Foreigner Joint Year S.P. P. S.P. P. S.P. P. S.P. P. venture Total …_ _ _ _ _ _ __ ___ _._ _ _ __ ( 000 ) -------------------------- _ _ 1966 13.0 2.1 75.4 19.4 14.2 2.8 0.4 0.1 - 127.4 1968 15.1 2.8 78.6 20.9 15.2 3.0 0.5 0.2 - 136.3 1971 19.3 5.3 88.7 25.0 17.1 3.7 0.6 0.2 - 159.9 1973 27.8 8.4 102.4 29.2 18.6 3.8 0.6 0.2 0.8 191.8 1974 31.0 10.4 103.2 30.5 17.4 3.7 0.5 0.1 2.2 199.0 1975 35.7 12.7 109.2 33.6 17.9 3.8 0.4 0.1 3.4 216.8 1976 40.4 15.0 116.5 37.8 18.5 4.0 0.4 0.1 4.7 237.4 1977 45.0 16.8 125.4 42.7 19.7 4.3 0.4 0.1 5.9 260.3 1978 50.8 18.6 136.1 47.5 21.1 4.6 0.5 0.1 6.9 286.2 1979 53.5 19.4 142.7 51.5 21.2 4.7 0.4 0.1 7.3 300.8 1980 58.8 20.1 147.8 55.0 21.5 4.9 0.4 - 7.2 315.7 Annual average growth rates (%) 1968-1973 13.1 25.1 5.4 6.9 4.1 5.0 2.9 4.9 - 7.1 1973-1978 12.7 17.1 5.9 10.2 2.6 4.0 (-)4.7(-)6.5 55.0 8.3 1971-1980 13.2 16.0 5.8 9.2 2.6 3.1 (-)4.4(-)1.0 39.0/a 7.9 S.P. Sole proprietorship. P. Partnership. /a 1973-1980. Source: Registrar of Businesses, Ministry of Trade and Industry, Government of Malaysia, Kuala Lumpur (unpublished data). - 61 - Table 2.1: PENINSULAR MALAYSIA: PRINCIPAL STATISTICS BY SECTORS, 1978 Total Gross Salaries Estab- employ- Value /f output/ Fixed and lishments ment added revenue assets wages Sectors ---- (number) ---- ------------ (M$ million) -------------- Manufacturing /a 11,225* 406,226* 5,451.5* 19,069.8 5,319.7* 1,397.4* (4,499) (377,718) (5,302.5) (18,548.6) (5,195.3) (1,359.2) Mining 1,286 49,650 805.7 1,289.3 444.5 193.1 Quarrying 190 6,687 91.9 173.1 102.6 31.3 Construction /b 6,379 147,354 1,089.5* 2,413.8 408.0 500.0 (2,500) (123,581) (1,021.0) (2,278.4) (382.5) (476.0) Housing developers 569 7,131 114.1 1,052.7 606.3 39.3 Real estate agencies 59 234 1.2 3.6 5.5 0.7 Subtotal (1) 19,708 617,282 7,553.9 24,002.3 6,886.6 2,161.8 Wholesale trade /c 15,121 110,871 2,656.4* 21,344.2 1,114.2 516.2 (14,003) (108,590) (2,648.0) (21,256.2) (1,110.7) (515.5) Retail trade /c 74,838 189,266 908.6* 7,924.3 464.1 177.6 (31,017) (115,699) (798.6) (6,957.0) (414.4) (174.8) Produce brokers /d 2,704 17,407 602.5 5,141.6 102.8 40.4 Road haulage 2,312 18,437 85.0 311.0 128.1 61.8 Bus transport 278 17,442 85.8 241.4 119.2 69.0 Taxi transport 1,413 3,633 6.8 23.3 18.2 2.6 Shipping companies 7 2,247 44.2 304.3 479.9 21.6 Stevedoring companies 19 6,063 38.5 46.7 1.5 32.5 Shipping agencies 123 2,070 21.8 37.8 8.5 13.7 Subtotal (2) 96,815 367,437 4,449.6 35,374.6 2,436.5 935.4 Hotels /e 862 12,192 106.7 190.3 233.8 34.0 Tourist & travel agencies 321 2,176 10.0 49.5 10.2 7.7 Cinemas 367 4,857 28.8 126.8 27.6 11.8 Photo studios /e 526 1,904 10.8 30.2 8.2 2.8 Hairdressing X: 3,055 7,651 25.1 31.7 5.7 8.2 Laundries /e 514 1,617 4.9 7.0 1.7 1.4 Subtotal (3) 5,645 30,397 186.3 435.5 287.2 65.9 Accountants 415 5,310 40.9 58.9 8.1 23.6 Engineers 171 3,392 34.5 58.5 5.9 27.3 Architects 1 148 1,961 20.2 39.5 6.2 11.9 Architects II 118 423 1.7 3.0 1.3 0.7 Surveyors 162 3,679 20.0 37.4 5.1 15.0 Lawyers 480 4,817 44.2 69.1 12.1 16.4 Dentists 1 121 531 4.5 7.9 3.3 1.2 Dentists II 254 482 2.0 4.2 1.7 0.5 Doctors 854 5,401 54.0 106.8 27.3 17.0 Veterinary surgeons 11 36 0.2 0.5 0.1 0.1 Subtotal (4) 2,734 26,032 222.2 385.8 71.1 113.7 Finance companies 36 1,340 26.1 59.6 2.6 9.2 Insurance companies 271 7,766 288.8 1,286.1 101.1 44.7 Private schools 1,043 9,319 35.9 55.5 47.4 30.6 Private hospitals 51 3,173 18.0 38.8 26.1 13.1 Subtotal (5) 1,951 26,076 482.0 1,933.4 247.1 128.3 Total (34 sectors) 126,853 1,067,223 12,894.0 62,167.3 9,928.5 3,405.1 * Mission's estimate. /a Figures in ( ) refer to the Annual Survey of Manufacturing Industries. Also see footnote /a in Annex Table 2.3. /b Figures in( ) refer only to the establishments with output above M$100,000 in 1978. T7 Figures in ( ) refer to the "establishments with accounts" only. Th Consist of brokers in rubber, oil palm, copra, and coconut industries. 7h Data available for odd years only, specifically refer to 1977. If Value added may be approximate. For most service sectors it is derived as the "revenue minus expenditure plus salaries and wages," and for the remaining sectors as the "output minus input." Source: The Department of Statistics, Government of Malaysia, Kuala Lumpur (unpublished data). - 62 - Table 2.2: PENINSULAR MALAYSIA: PRINCIPAL STATISTICS BY SECTORS, 1973 Gross Establish- Total Value output/ Fixed Salaries Sectors ments employment added /f revenue assets & wages ------ (Number) ------ ---------------- (MS million) -------------- Manufacturing /a 12,095 303,656 2,341.4 7,758.8 2,308.9 594.2 (11,060) (297,934) (2,326.9) (7,677.7) (2,294.6) (587.0) Mining 1,435 54,608 473.0 686.9 291.6 129.5 Quarrying 160 5,743 38.9 69.7 37.0 17.0 Construction lb 3,798 97,519 371.6* 1,020.1 119.1 223.3 (1,299) (80,135) (350.6) (939.0) (112.4) (210.7) Housing developers 385 6,123 70.3 396.2 181.6 23.9 Real estate agencies 55 292 1.7 3.6 0.7 0.8 Subtotal (1) 17,928 467,941 3,296.9 9,935.3 2,938.9 988.7 Wholesale trade /c /e 12,202 88,666 1,683.7* 14,577.7 550.8 296.5 (11,424) (86,955) (1,680.7) (14,546.5) (549.8) (296.1) Retail trade /c /e 72,505 177,556 586.1* 5,000.6 269.1 99.8 (31,589) (106,342) (514.6) (4,390.5) (236.3) (98.8) Produce brokers 2,522 14,165 186.5 2,157.9 58.4 17.2 Road haulage Id 326 8,066 27.7 114.0 32.6 22.6 Bus transport 128 13,956 58.3 137.4 57.5 42.0 Taxi transport /d 66 676 1.5 4.7 2.3 1.1 Shipping companies 10 1,521 15.7 87.3 260.2 9.8 Stevedoring companies 18 6,958 30.1 36.6 0.7 21.1 Shipping agencies 95 1,717 14.6 21.6 2.6 8.5 Subtotal (2) 87,872 313,281 2,604.2 22,137.8 1,234.2 518.6 Hotels & other lodging places 862 9,908 N/A 109.9 NIA 14.5 Tourist & travel agencies 164 1,338 3.4 19.6 3.6 3.8 Cinemas 333 4,515 19.8 83.6 13.3 7.6 Photographic studios 423 1,365 N/A 11.5 NIA 1.2 Barber & beauty shops 3,040 6,930 N/A 18.3 N/A 4.5 Laundries & laundry services 565 1,658 N/A 4.8 N/A 0.9 Subtotal (3) 5,387 25,714 23.2 /g 247.7 16.9 /g 32.5 Accountants /e 270 3,704 24.4 33.8 3.9 12.6 Engineers /e 88 2,001 20.8 32.3 2.9 12.8 Architects /e 227 1,964 17.4 29.0 3.5 7.6 Surveyors /e 86 1,740 8.8 14.6 2.1 5.2 Lawyers /e 367 3,422 26.0 38.5 6.4 9.1 Dentists Iv 360 909 4.2 8.0 3.6 1.0 Doctors /e 666 4,288 36.5 74.2 16.0 8.9 Veterinary surgeons /e 6 24 0.1 0.2 0.1 Neg. Subtotal (4) 2,070 18,052 138.2 230.6 38.5 57.2 Finance companies 373 3,173 66.4 283.0 40.3 13.5 Stock brokers 36 1,247 23.3 40.0 1.8 6.1 Insurance companies 266 4,511 136.5 375.2 53.6 21.5 Private schools 732 6,381 20.5 30.3 25.6 16.9 Private hospitals 49 2,048 9.8 18.1 10.2 8.3 Subtotal (5) 1,456 17,360 256.5 746.6 131.5 66.3 Total (34 sectors) /h 114,713 842,348 6,319.0 /g 33,298.0 4,360.0 /g 1,663.3 * itission's estimate. /a Figures in ( ) exclude tailoring and dressmaking, and manufacture of jewelry and related articles. /b Figures in ( ) refer only to the establishments with output above M1S100,000 in 1973. /c Figures in ( ) refer only to the "establishments with accounts" only. /d Figures are not comparable with 1978, since the 1973 Census excluded most of the individually operated establishments. /e Refers to 1974. /f Value added may be approximate. For most service sectors it is derived as the "revenue miaus expenditure plus salaries and wages," and for the remaining sectors as the "output minus input." /g Partial total: excludes not available (NA) figures. Ih Excludes catering which had 15,039 establishments, 46,850 total employment, and M$373.5 million revenue in 1973. Source. Census of Manufacturing Industries, Peninsular Malaysia, 1973, (Volume I); Sample Survey of Wholesale and Retail Trades in Peninsular Malaysia in 1974 (Volume 11), Census of Construc- tion Industries in Peninsular Malaysia in 1973 Census of Mining Industries, Peninsular Malaysia, 1973 (The Department of Statistics, Government of MaLaysia, Kuala Lumpur.) - 63 - Table 2.3: PENINSULAR MALAYSIA: GROWTH AND ECONOMIC SIGNIFICANCE OF BUSINESSES BY SELECTED SECTORS, 1973/74-1978 Number of Total Gross Sala- estab- employ- Value output/ Fixed ries & Sectors lishments ment added revenue assets wages Average Annual Growth Rate Manufacturing 0.1/a 6.0 18.4 19.7 18.2 18.7 Retail trade 0.8 1.6 11.6 12.2 14.6 15.5 Wholesale trade 5.5 5.7 12.1 10.0 19.2 14.9 Construction 10.9 8.6 24.0 18.8 28.0 17.5 Mining (-)2.2 (-)2.0 11.2 13.4 8.8 8.3 Housing developers 8.1 3.1 10.2 22.0 27.0 10.5 Produce brokers 1.4 4.2 26.0 19.0 12.0 18.6 Insurance companies 0.4 11.5 16.2 28.0 13.5 15.8 Subtotal (12/b sectors) 1.9 4.9 15.9 14.1 18.3 16.4 Total (34 sectors) 2.2 5.0 15.9 14.1 18.5 16.1 Percent Total of Each Characteristic, 1978 Manufacturing 8.8/a 38.1 42.3 30.7 53.6 41.0 Retail trade 59.0 17.7 7.0 12.8 4.7 5.2 Wholesale trade 11.9 10.4 20.6 34.4 11.2 15.2 Construction 5.0 13.8 8.4 3.9 4.1 14.7 Mining 1.0 4.7 6.2 2.1 4.5 5.7 Housing developers 0.4 0.7 0.9 1.7 6.1 1.2 Produce brokers 2.1 1.6 4.6 8.3 1.0 1.2 Insurance companies 0.2 0.7 2.2 2.1 1.0 1.3 Subtotal (12/b sectors) 91.2 92.1 95.3 97.7 90.5 91.1 Total (34 sectors) 100.0 100.0 100.0 100.0 100.0 100.0 /a The mission had to estimate the number of establishments (and associated characteristics) in size groups employing less than 5, or 5 to 9 persons, because the Annual Survey of Manufacturing Industries, 1978, only partially covered them; the latest complete coverage for these two size groups refers to 1973. A comparison of the number of establishments in various size groups having full coverage in both 1978 and 1973 indicates a drastic fall in size group employing 10 to 19 persons and some rise in larger size groups. The aggregation of the numbers by size group indicates a slight fall for 10-99 and a slight rise for 10-199. The mission, therefore, assumed no growth in size groups <10. Based on this assumption, the aggregate number of establishments in the manufacturing sector estimated for 1978 turns out to be 11,225 against 11,060 in 1973, showing a small growth. That there has been little growth of SSIs is also indicated by the repeat survey of more than 100 SSIs in 1981 especially done for the mission. Based on the frame of all manufacturing establishments available in early 1982, the DOS feels that the total number of manufacturing establishments could be much higher than the mission's estimate, because a comparison of 1973 and 1981 census frames reveals an annual growth rate of 9%. However, it was not possible to improve on the mission's estimate merely on the basis of the frames, partly because the actual growth rate of manufac- turing establishments between 1973 and 1978 on a comparable basis turns out to be only around 3% p.a. Also it is not clear what proportlon of establishments in the 1981 census frame would actually be operating. This gap in basic information reinforces the mission's suggestion that the Government ought to assign high priority to the improvement of basic industrial statistics in Malaysia. /b Includes bus transport, road haulage, quarry and finance companies, besides the above mentioned eight sectors. Source: Annex Tables 2.1 and 2.2. - 64 - Table 3.1: PENINSULAR MALAYSIA: NUMBER OF ESTABLISHMENTS IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978 Total Employment Size Group 100- 200- 500- <5 5-9 10-19 20-29 30-49 50-99 199 499 999 >1,000 Total Sectors ------------------------- Number of establishments ------------------------ Manufacturing /a 4,683* 2,436* 1,044 790 758 732 392 269 80 41 11,225* (84) (309) (4,499) Retail trade /b 69,950 3,689 863 ---- 208 --- 81 39 7 - 1 74,838 (26,314) (3,506) (861) (31,017) Wholesale trade /b 7,846 4,670 1,823 ---- 602 --- 115 52 12 - 1 15,121 (6,750) (4,650)(1,821) (14,003) Construction /c 1,034* 3,121* 827* 396 380 353 171 75 18 4 6,379 (34) (321) (748) (2,500) Mining 8 72 226 374 396 140 61 8 - 1 1,286 Road haulage 1,547 446 159 46 51 50 9 4 - - 2,312 Bus transport 39 66 38 19 22 43 28 19 4 - 278 Quarrying 6 23 51 37 34 29 9 1 - - 190 Housing developers 243 135 114 28 22 17 8 2 - - 569 Produce brokers /d 1,947 516 126 30 40 28 10 6 1 - 2,704 Finance companies 250 194 65 19 12 6 3 1 - - 550 Insurance companies 110 58 28 21 18 20 11 4 - 1 271 Subtotal 87,663 15,426 5,364 --- 4,303 --- 1,614 793 408 103 49 115,723 Professions /e 1,170 852 453 129 79 35 10 5 1 - 2,734 Other services /f 6,207 1,221 555 183 118 64 26 15 5 2 8,396 Total (34 sectors) 95,040 17,499 6,372 --- 4,812 --- 1,713 829 428 109 51 126,853 * Mission's estimate. /a Figures in ( ) refer to the Annual Survey of Manufacturing Industries. Also see footnote /a in Annex Table 2.3. /b Figures in ( ) refer to the "establishments with accounts" only. /c Figures in ( ) refer to the establishments with output above M$100,000 only. /d Includes rubber, oil palm, copra and coconut brokers; data available for odd years only, specifically refer to 1977. Figures with asterisks are mission's estimates derived from original figures grouped together for more than one size group. /e Consist of accountants, architects I & II, dentists I & II, doctors, engineers, lawyers, surveyors, and veterinary surgeons. /f Consist of shipping/stevedoring companies, real estate/tourist & travel/shipping agencies, taxi transport, cinemas, stockbrokers, private schools/hospitals, hotels, hairdressing, laundries and photo studio. The data for the last four sectors relate to 1977. Source: The Department of Statistics, Government of Malaysia, Kuala Lumpur (unpublished tables). Table 3.2: PENINSULAR MALAYSIA: NUMBER OF PERSONS ENGAGED IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978 Total Employment Size Group <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >1,000 Total Sectors ---------------------------------- Number of persons engaged ------------------------------------- Manufacturing /a 13,630* 17,320* 15,180 19,028 28,848 51,155 54,401 79,245 53,583 73,836 406,226* (244) (2,198) (377,718) Retail trade /b 137,272 21,887 11,065 ------5,703----- 5,792 5,129 1,857 - 561 189,266 ((64,610) (21,006) (11,041) (115,699) Wholesale trade /b 21,168 29,906 23,761 -----17,296----- 7,714 6,980 3,456 - 590 110,871 (19,029) (29,792) (23,733) (108,590) Construction /c 3,801* 21,306* 11,655* 9,528 14,415 24,222 23,228 21,395 11,712 6,092 147,354 1 (113) (2,335) (10,541) (123,581) o Mining 25 504 3,379 9,196 14,873 9,217 8,964 2,164 - 1,328 49,650 Ul Road haulage 4,218 2,804 2,222 1,090 1,993 3,459 1,101 1,550 - - 18,437 Bus transport 120 424 533 480 839 2,977 3,964 5,718 2,387 - 17,442 Quarrying 17 157 726 908 1,248 2,022 1,338 271 - - 6,687 Housing developers 517 891 1,496 661 845 1,142 1,094 485 - - 7,131 Produce brokers /d 4,855 3,182 1,603 694 1,495 1,903 1,300 1,625* 750* - 17,407 Finance companies 505 1,302 843 463 448 338 365 214 - - 4,478 Insurance companies 211 363 411 537 697 1,368 1,602 1,280 - 1,297 7,766 Subtotal 186,339 100,046 72,874 -- 131,285 ---- 111,309 109,466 119,260 68,432 83,704 982,715 Professions /e 2,902 5,554 6,032 2,998 2,975 2,392 1,290 1,372 517 - 26,032 Other services /f 13,177 7,775 7,454 4,269 4,827/ 4,153 3,400 5,724 1,841 5,856 58,476 - (4.~~~~~~~~~~~33sr Total (34 sectors) 202,418 113,375 86,360 ---146,354---- 117,854 114,156 126,356 70,790 89,560 1,067,223 * Mission's estimate. /g Includes size groups 10-199 for laundries and 20-99 for photo studies. See Table 3.1 for footnotes /a to /f and source. Table 3.3: PENINSULAR MALAYSIA: VALUE ADDED IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978 Total Employment Size Group <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >1,000 Total Sectors ----------------------------------- Value added (M$ million ) --------------------------------- Manufacturing /a 65.0* 116.0* 129.3 174.4 285.7 754.0 946.4 1,457.2 711.6 811.9 5,451.5* (2.8) (29.0) (5,302.3) Retail trade /b 406.7* 143.7* 92.5* ------81.8--- 99.0 57.5 27.4/g - /h 908.6* (298.0) (142.8) (92.4) (798.6) Wholesale trade /b 259.0* 463.3* 425.8* -----524.8--- 392.7 372.8 218.0/g - /h 2,656.4* (250.9) (463.0) (425.8) (2,648.0) Construction /c 7.3* 67.3* 107.7* 77.8 117.6 171.5 215.6 166.2 126.9 31.6 1,089.5* (3.9) (24.1) (85.8) (1,021.0) Mining 0.1 4.2 41.2 78.4 170.9 126.6 280.6 103.7/g - /h 805.7 Road haulage /i 14.3 10.2 9.0 5.2 9.0 16.2 4.2 16.8 - - 85.0 Bus transport /i 0.5 1.8 1.9 2.1 3.3 14.7 21.8 26.8 12.9 - 85.8 Quarrying 0.1 1.4 7.7 9.1 17.4 29.2 24.1 3.0 - - 91.9 Housing developers /i 15.2 (-) 4.3 7.3 30.0 17.2 7.7 28.5 12.4 - - 114.1 Produce brokers /d 28.8 34.7 47.6 38.6* 90.9* 115.0* 107.8 94.7* 44.5* - 602.5 ON Finance companies /i 5.9 7.8 29.9 17.9 9.7 22.4 13.8 6.0 - - 113.2 Insurance companies /i 19.6 37.2 24.8 22.7 15.6 33.5 110.2 20.0* - 5.3* 288.8 Subtotal 822.5 883.3 924.7 -- 1,800.1 -- 1,782.5 2,183.3 2,152.2 895.9 848.8 12,293.0* Professions /e /i 222.2 Other services7X /i 378.8 Total (34 sectors) 862.7 926.5 969.9 -- 1,888.1 -- 1,869.6 2,290.0 2,258.8 938.5 890.3 12,894.0* * Mission's estimate. /g Includes data for an establishment in the employment size >1,000. /h Figures included in the size group 200-499 because of a single establishment. /i Mission does not have full data by size for all the professions and other services. The value added figures are approximations for these sectors as well as for road haulage, bus transport, housing developers, and finance and insurance companies. See Table 3.1 for footnotes /a to /f and source. Table 3.4- PENINSULAR MALAYSIA: FIXED ASSETS IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978. Total Employment Size Group Sectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >,1,000 Total ------------------------------ Value of Fixed assets (M$ million) ----------------------------- Manufacturing /a 74.5* 70.8* 101.8 146.7 267.8 645.4 846.1 1,415.1 887.2 864.3 5,319.7* (3.2) (17.7) (5,195.3) Retail trade /b 183.9* 91.3* 54.9* ------35.2--- 30.7 40.4 5.6 -----22.1--- 464.1* (134.8) (90.8) (54.8) (414.4) Wholesale trade lb 99.3* 209.3* 208.1* -----198.9--- 129.9 134.6 66.5 -----67.6-- 1,114.2* (96.2) (209.2) (208.1) (1,110.7) Construction /c 2.6* 24.0* 43.8* 33.5 77.3 59.0 65.4 45.0 47.9 9.5 408.0* (1.4) (8.6) (34.9) (382.5) Mining 0.4 6.4 18.8 42.7 105.9 79.8 141.6 43.8 - 5.1 444.5 Road haulage 27.4 18.6 14.1 7.7 9.2 16.6 6.7 27.8 - - 128.1 Bus transport 1.0 3.6 3.2 3.1 6.7 19.9 31.0 29.8 20.9 - 119.2 Quarrying 0.1 2.8 10.5 23.7 15.9 29.1 14.3 6.2 - - 102.6 Housing developers 133.4 91.4 166.1 52.3 30.5 64.5 46.4 21.7 - - 606.3 Produce brokers /d 11.2 12.1 9.6 8.4 15.1 12.8 10.9 15.5* 7.3* - 102.8 Finance companies 14.4 9.4 11.0 4.2 6.6 8.4 1.7 14.0 - - 69.9 Insurance companies 1.0 0.2 12.4 3.6 3.4 21.2 32.0 2.8 - 24.5 101.1 Subtotal 549.2 539.9 654.3 --- 1,098.4-- 1,117.3 1,371.1 1,693.8 -1,956.4--- 8,980.5 Professions /e 12.8 22.0 17.0 6.6 6.2 4.0 0.7 0.8 0.5 - 70.6 Other services /f 32.1 24.0 39.7 26.0 32.4 32.2 93.6 45.2 81.7 470.5 877.4 Total (34 594.1 585.9 711.0 ---1,169.6--- 1,153.5 1,465.5 1,739.8 --2,509.1-- 9,928.5 sectors) ---------------------------------- Total assets (M$ million) --------------------------------- Retail trade /g 533.1 313.7 183.1 -----116.2-- 106.3 95.1 ---------64.3---------- 1,411.8 Wholesale trade /g 365.8 710.8 678.2 ------589.7--- 389.1 416.9 --------320.2---------- 3,470.7 * Missions estimate. /g Refers to total assets (fixed assets and stocks) of the "establishments with accounts" only as on December 31, 1978. See Table 3.1 for footnotes /a to /f and source. Table 3.5: PENINSULAR MALAYSIA: GROSS OUTPUT IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978 Total Employment Size Group (5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 )1,OO0 Total Sectors ---------------------------------- Gross output (M$ million) ------------------------------- Manufacturing /a 240.0* 393.6* 466.6 628.9 1,126.4 2,531.3 3,430.0 5,421.5 2,029.0 2,802.5 19,069.8* (11.4) (100.9) (18,548.5) Retail trade /b 3,573.5 1,543.6 1,109.8 -----663.6---- 591.3 315.5 80.4 --------46.6---- 7,924.3 (2,616.3)(1,534.1)(1,109.2) (6,957.0) Wholesale trade. /b 2,694.0 4,899.2 4,687.3 ---4,459.2---- 1,907.4 1,454.8 764.2 -------478.0---- 21,344.2 (2,609.7) (4,895.6) (4,687.2) (21,256.2) Construction /c 15.5* 151.7* 255.9* 186.9 270.5 397.2 442.0 359.6 259.9 74.6 2,413.8 (8.8) (66.3) (212.6) p (2,278.4) Mining 0.2 9.9 73.5 153.8 323.3 219.2 374.0 113.6 - 21.7 1,289.3 Road haulage 49.2 37.9 38.9 20.2 31.6 64.8 17.3 51.0 - - 311.0 Bus transport 1.5 5.5 5.9 7.2 10.9 39.9 61.9 75.7 32.9 - 241.4 o Quarrying 0.2 2.5 13.9 16.4 28.0 56.3 47.9 7.9 - - 173.1 X Housing developers 141.5 126.8 219.8 143.9 91.8 104.0 150.3 74.6 - - 1,052.7 Produce brokers /d 758.8 1,050.2 713.9 383.2* 598.7* 581.4* 447.1 413.5* 194.6* - 5,141.6 Finance companies 20.8 63.2 85.5 60.3 76.2 60.8 96.0 30.8 - - 493.4 Insurance companies 87.6 86.7 101.3 128.8 158.2 329.2 318.5 60.2 - 15.6 1,286.1 Subtotal 7,582.8 8,370.8 7,771.5 -- 9,568.0 --- 6,882.8 7,155.3 7,453.0 ---- 5,955.4 --- 60,740.7 Professions /e 46.0 84.3 85.3 45.7 41.7 41.7 18.6 19.9 2.5 - 385.6 Other services /f 80.2 72.9 95.0 94.9 102.9 74.9 56.6 88.0 65.0 310.8 1,041.0 Total (34 sectors) 7,709.0 8,528.0 7,951.8 -- 9,853.2 --- 6,999.4 7,230.5 7,560.9 ---- 6,333.7 --- 62,167.3 See Table 3.1 for footnotes and source. - 69 - Table 3.6: PENINSULAR MALAYSIA: PRINCIPAL STATISTICS OF SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1973 Total Employment Size Group Sectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >X,000, Total Number of Establishments Manufacturing /a 4,683 2,436 1,485 654 675 556 303 191 56 '1 11,060 _____ (1,375)* ---- (1,375)* (3,831) Retail trade /b 68,052 3,488 732 - 179 -- 34 14 6 - - 72,505 (27,256) (3,376) (724) (31,589) Wholesale trade /b 6,520 3,557 1,513 ----- 474 -- 89 37 12 - - 12,202 (5,762) (3,540) (1,510) (11,424) Construction /c 614. 1,648* 634* 252 238 232 112 50 -------- 18 -- 3,798 (2) (77) (318) (1,299) Mining 22 59 245 451 463 122 62 11 - 1,435 Number of Persons Engaged Manufacturing /a 11,733 15,801 20,082 15,886 25,756 38,403 41,025 58,107 38,091 73,050 297,934 (11,976) -------- (262,294) Retail trade /b 136,748 20,820 9,268 -- 4,961 -- 2,340 1,842 1,577 - - 177,556 (66,196) (20,238) (9,188) (106,342) Wholesale trade /b 18,178 23,008 20,053 -- 13,532 -- 6,070 4,930 2,895 - - 88,665 (16,600) (22,911) (20,017) (86,955) Construction /c 2,364* 11,077* 9,204* 6,092 9,261 15,676 15,682 15,013 ---- 13 ,150 --- 97,519 ------- (591) ----- (4,670) (80,135) Mining 71 500 3,964 11,218 17,338 7,821 9,139 4,557 - - 54,608 Value Added (M$ million) Manufacturing /a 29.4 55.6 88.5 92.0 160.5 323.3 391.9 576.7 294. 5 314.6 2,326.9 ____---- _-- (64.7) ------- (2,218.1) Retail trade /b 266.8* 99.5* 58.3* ---- 72.7 -- 27.8 10.2 44.9 - _ 580.3* (201.7) (98.9) (58.3) (514.6) Wholesale trade /b 172.7* 262.0* 330.6* -- 368.4 -- 290.2 153.0 108.1 - 1,685.0* (168.6) (261.9) (330.5) (1,680.7) Construction /c 1.0* 15.4* 28.5* 21.6 36.4 68.5 63.0 76.9 -- 60.2 371.6* ------- (3.4) ---- (20.5) (350.6) Mining 0.4 3.5 17.1 57.1 100.9 62.5 152.4 79.1 - 473.0 Value of Fixed Aasets (M$ million) Manufacturing /a 21.8 37.4 63.3 61.9 156.2 283.1 390.5 717.0 3 26.7 236.6 2,294.6 … _____------ (63.3)* . Retail trade /b 105.3* 39.9* 23.2* ---- 28.9 -- 7.1 20.6 37.2 - - 262.2 (79.6) (39.7) (23.2) (236.3) /d 461.3* 194.0* 98.8* ----- 95.9 -- 27.5 35.1 80.9 - - 993.6* (351.8) (192.9) (98.8) (882.8) Wholesale trade /b 51.8 93.2* 115.0* --- 118. -- 86.4 58.0 28.5 - - 551.2 (50.6) (93.1) (114.9) (549.8) /d 208.8 399.0* 429.2* ---- 446.3 --- 281.4 212.7 139.C. - - 2,116.3* (203.9) (398.7) (428.9) (2,110.9) Construction /c 0.3* 4.5* 11.3* 7.8 18.0 18.9 37.4 12. 5 ------- 8.4 --- 119.1* ___-(1.3) - ~~ (8.1) (112.4) Mining 0.3 10.8 6.9 21.0 38.1 52.8 120.9 40 .7 - - 291.6 Value of Gross Output (M$ million) Manufacturing /a 310.7 174.8 320.5 321.6 502.3 757.7 934.0 2,25 9.6 931.9 1,164.6 7,677.7 ----------- (470.4) ----(7,342.1) Retail trade /b 2,471.3 1,081.8 641.9 --- 443.4 -- 184.9 59.0 11.8.3 - - 5,000.6 (1,868.0) (1,075.0) (641.8) (4,390.5) Wholesale trade /b 2,373.5 3,083.7 3,504.3 - 3,048.9 -- 1,381.2 750.9 435.2 - - 14,577.7 (2,344.4) (3,082.4) (3,503.5) (14,546.5) Construction /c - ----- 66.0* ------ 95.7* 69.1 103.2 180.1 176.5 184.1 145.4 --- 1,020.1 -- (13.4) ----- (67.2) (939.0) Mining 0.6 6.0 31.5 94.7 169.7 96.3 189.8 98.2 - - 686.9 * Mission's estimate. /a Figures in ( ) refer to the ASMI 1978 coverage as applied to the CMI 1973. /b Refers to 1974. Figures in ( ) refer to the "establishments with accounts" only. /c Figures in ( ) refer only to the establishments with output above M$100,000 in 1973. /d Value of total assets (fixed and stocks) as on December 31, 1974. Source: See Table 2.2. - 70 - Table 3.7.1 Page 1 of 1 Table 3.7.1: PENINSUILAR MALAYSIA: PRINCIPAL STATI:STICS OF SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1978 TSEs < … SSEs -------> MSEs LSEs Sectors <5 5-9 10-49 5-49 50-199 >200 Total Number of Establishmeints Manufacturi'.ng 4,683* 2,436* 2,592 5,028* 1,124 390 11,225* Retail trad e 69,950 3,689 1,071 4,765 120 8 74,838 Wholesale ti-ade 7,846 4,670 2,425 7,095 167 13 15,121 Construction 1,034* 3,121* 1,603* 4,724* 524 97 6,379 M:ining 8 72 996 1,068 201 9 1,286 Road haulage 1,547 446 256 702 59 4 2,312 Rousing developers 243 135 164 299 25 2 569 Produce brokei-s 1,947 516 196 712 38 7 2,704 /a Subtotal (1'.2 sectoris 87,663 15,426 9,667 25,093 2,407 560 115,723 Total (34 swetors) 95,040 17,499 11,184 28,683 2,542 588 126,853 Number of Persons Engaged Manufacturing 13,630* 17,320* 63,056 80,376* 105,956 206,664 406,226* Retail trade 137,272 21,887 16,768 38,655 10,921 2,418 189,266 Wholesale trade 21,168 29,906 41,057 70,963 14,694 4,046 110,871 Construction 3,801* 21,306* 35,598* 56,904* 47,450 39,199 147,354 Mining 25 504 27,448 27,952 18,181 3,492 49,650 Road haulage 4,218 2,804 5,305 8,109 4,560 1,550 18,437 Housing developers 517 891 3,002 3,893 2,236 485 7,131 Produce brokers 4,855 3,182 3,792 6,974 3,203 2,375 17,407 /a Subtotal (12 sec1iors)l86,339 100,046 204,159 304,205 220,775 271,396 982,715 Total (34 sectors) 202,418 113,375 232,714 346,089 232,010 286,706 1,067,223 * Mission's estimate. - 71 - Table 3.7.M Page 2 of 2 Table 3.7.1: PENINSULAR MALAYSIA: PRINCIPAL STATISTICS OF SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1978 TSEs <------- SSEs -------> MSEs LSEs Sectors <5 5-9 10-49 5-49 50-199 )200 Total Value Added (M$ million) Manufacturing 65.0* 116.0* 589.4 705.4* 1,700.4 2,980.7 5,451.5* Retail trade 406.7* 143.7* 174.7* 318.0* 156.5 27.4 906.8* Wholesale trade 259.0* 463.3* 950.6* 1,413.9* 765.5 218.0 2,656.4* Construction 7.3* 67.3* 303.1* 370.4* 387.1 324.7 1,089.5* Mining 0.1 4.2 290.5 294.7 407.2 103.7 805.7 Road haulage 14.3 10.2 23.2 33.4 20.4 16.8 85.0 Housing developers 15.2 (-)4.3 54.5 50.2 36.2 12.4 114.1 Produce brokers 28.8 34.7 177.1 211.8 222.8 139.2 602.5 /a Subtotal (12 sectors)822.5 883.3 2,724.8 3,608.1 3,965.8 3,896.9 12,293.0 Total (34 sectors) 862.7* 926.5* 2,858.0* 3,784.5* 4,159.6* 4,087.6* 12,894.0 Value of Fixed Assets (M$ million) Manufacturing 74.5* 70.8* 516.3 587.1* 1,491.5 3,166.6 5,319.7* Retail trade /b 183.5* 91.3* 90.1* 181.4* 71.1 27.7 464.1* (533.1) (313.7) (299.3) (613.0) (201.4) (64.3) (1,411.8) Wholesale trade /b 99.3* 209.3* 406.9* 616.2* 264.5 133.9 1,114.2* (365.8) (710.8) (1,267.9) (1,978.7) (806.0) (320.2) (3,470.7) Construction 2.6* 24.0* 154.6* 178.6* 124.4 102.4 408.0* Mining 0.4 6.4 167.4 173.8 221.4 48.9 444.5 Road haulage 27.4 18.6 31.0 49.6 23.3 27.8 128.1 Housing developers 133.4 91.4 248.9 340.3 110.9 21.7 606.3 Produce brokers 11.2 12.1 33.1 45.2 23.7 22.8 102.8 /a Subtotal (12 sectors)549.2 539.9 1,752.7 2,292.6 2,488.4 3,650.2 8,980.5 Total (34 sectors) 594.1 585.9 1,880.6 2,466.4 2,619.0 4,248.6 9,928.5 * Mission's estimate. /a Includes bus transport, quarrying, and finance and insurance companies, besides the above-mentioned eight sectors. /a Figures in ( ) in the "Fixed Assets" block refer to total assets (fixed assets and stocks) as on December 31, 1978. Source: Tables 3.1 to 1 4 - 72 - Table 3.7.2: PENINSULAR MALAYSIA: PRINCIPAL STATISTICS OF SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1973 TSEs <------- SSEs … -> MSEs LSEs Sectors <5 5-9 10-49 5-49 50-199 >,200 Total Number of Establishment M[anufacturing 4,683 2,436 2,814 5,250 859 268 11,060 Retail trade 68,052 3,488 911 4,399 48 6 72,505 Wholesale trade 6,520 3,557 1,987 5,544 126 12 12,202 Construction 614* 1,648* 1,124* 2,,772* 344 68 3,798 Mi iing 22 59 1,159 1,218 184 11 1,435 Number of Persons Engaged Manufacturing 11,733 15,801 61,724 77,525 79,428 129,248 297,934 Retail trade 136,748 20,820 14,229 35,049 4,182 1,577 177,556 Wholesale trade 18,178 23,008 33,585 56,593 11,000 2,895 88,666 Construction 2,364* 11,077* 24,557* 35,634* 31,358 28,163 97,519 Mining 71 500 32,520 33,020 16,960 4,557 54,608 Value Added (MS million) Manufacturing 29.4 55.6 341.0 396.6 715.2 1,185.8 2,326.9 Retail trade 266.8* 99.5* 131.0* 230.5* 38.0 44.9 580.3* Wholesale trade 172.7* 262.0* 699.0* 961.8* 443.2 108.1 1,685.0* Construction 1.0* 15.4* 86.5* 101.9 131.5 137.1 371.6* ining 0.4 3.5 175.1 178.6 214.9 79.1 473.0 Value of Fixed Assets (MS million) Manufacturing 21.8 37.4 281.4 318.8 673.6 1,280.3 2,294.6 Retail trade /a 105.3* 39.9* 52.1* '92.0* 27.7 37.2 262.2 (461.3*) (194.C*) (194.7*) (388.7*) (62. 6) (80.9) (993.6*) Wholesale trade /a 51.8 93.2 233.3 326.5* 144.4, 28.5 551.2 (208.8) (399.01*) (875.5*)(1,274.5*) (494.1) (139.0) (2,116.3*) Construction 0.3* 4.5* 37.1 41.6 56.3 20.9 119.1* Mining 0.3 10.8 66.0 76.8 173.7 40.7 291.6 * Mission's estimate. /a Figures in ( ) in "Fixed assets" block refer to total assets (fixed assets and stocks) as on December 31, 1974. Source: Tables 3.6. - 73 - Table 3.8: PENINSULAR MALAYSIA: PRINCIPAL STATISTICS OF SELECTED SECTORS BY FIXED ASSETS SIZE GROUP, 1978 Fixed Assets Size Group (MS'000) 10 to 20 to 50 to 100 to 200 to 500 to 1,000 to 5,000 to Sectors <10 <20 C50 <100 <200 <500 <1,000 <5,000 <10,000 >10,000 Total Number of Establishments Manufaccuring /a 382 295 683 640 604 667 402 596 130 100 4,499 Retail trade /7 25,259 2,661 1,774 747 335 182 42 14 1 2 31,017 Wholesale trade /b 6,325 2,269 2,667 1,259 733 486 146 95 16 7 14,003 Construction /c 752 348 471 307 296 197 75 41 10 3 2,500 Mining 135 79 199 253 278 200 58 62 20 2 1,286 Road haulage 699 600 616 193 104 71 20 5* 3*. 1* 2,312 Bus transport 9 34 66 29 31 45 37 24 2* 1* 278 Quarrying 40 6 16 15 20 49 17 24 2 1 190 Housing developers 143 41 65 58 52 68 34 79 16 13 569 Produce brokers /d 2,016 230 238 98 44 46 12 17 3 - 2,704 Finance companies 255 75 77 49 33 34 10 10* 6* 1* 550 Insurance companies 196 10 9 10 10 10 7 15 4 (1) 271 Total 36,211 6.648 6,881 3.658 2,540 2.055 860 982 213 131 60,179 Number of Persons Engaged Manufacturing /a 8,617 5,273 15,059 17,823 21,791 34,103 35,165 102,735 58,876 78,276 377,718 Retail trade /iW 74,147 11,010 10,432 5,902 4,070 6,813 1,467 991 149 718 115,699 Wholesale trade /b 26,420 12,993 20,307 14,263 9,925 10,130 4,163 6,709 1,827 1,853 108,590 Construction /c 18,157 8,481 17,485 14,774 17,938 20,420 11,826 9,568 3,715 1,217 123,581 Mining 2,664 1,582 4,932 7,577 9,154 9,258 3,550 6,195 ----- 4,738 ----- 49,650 Road haulage 2,235 2,308 3,302 2,186 2,182 2,944 1,211 1,150* 695* 230* 18,437 Bus transport 50 183 613 393 990 2,654 4,609 6,406 1,025* 520 17,443 Quarrying 1,537 58 274 296 447 1,365 643 1,610 350* 107* 6,687 Housing developers 551 198 599 1,069 800 844 715 1,353 435 567 7,131 Produce brokers /d 6,905 1,316 1,730* 1,267* 813* 1,414 1,521* 1,339* 1,102 - 17,407 Finance companies 1,118 497 610 468 349 509 203 425* 255* 44* 4,478 Insurance companies 2,849 118 152 304 393 794 252 1,282 1,622 (1) 7,766 Total 145,250 44,011 75,495 66,322 68,852 91.248 65,325 139,763 72,901 85,420 854,587 Value Added (M$ million) Manufacturing /a 72.2 29.9 84.4 125.0 172.3 331.5 394.4 1,480.9 955.5 1,656.2 5,302.3 Retail trade /b 374.1 73.9 96.7 72.6 37.0 65.9 19.3 30.9 2.1 26.1 798.6 Wholesale trade /b 427.3 168.8 302.5 268.8 253.1 227.6 129.4 383.3 231.7 255.5 2,648.0 Construction /c 118.6 45.0 111.3 95.1 150.8 164.5 118.5 152.9 46.0 18.3 1,021.0 Mining 28.0 9.4 39.3 67.5 86.1 113.6 86.9 196.4 178.5 ---- 805.7 Road haulage 6.2 7.1 12.0 10.1 10.7 15.1 5.0 10.4* 6.3* 2.1* 85.0 Bub transport 0.2 0.6 1.9 1.5 3.5 11.1 20.0 34.7 8.3* 4.1* 85.8 Quarrying 12.2 0.5 1.4 1.4 4.5 19.1 9.3 33.1 6.7 3.6 91.9 Housing developers 15.5 (-)3.5 16.8 2.8 34.1 5.4 17.1 40.6 Neg. (-)14.9 114.1 Produce brokers /d 97.5 15.7 34.4* 49.2* 32.1* 85.7* 126.9* 102.9* 58.0 - 602.6 Finance companies 27.8 0.2 8.8 10.1 9.5 20.8 3.9 18.8* 11.3* 1.9* 113.3 Insurance companies 103.0 2.4 5.7 7.7 17.2 53.3 2.5 68.1 28.8 (1) 288.9 Total 1,282.6 350.0 715.2 711.8 810.9 1,113.6 933.2 2,553.0 1,426.1 2,060.0 11,957.2 Value of Fixed Assets (M$ million) Manufacturing /a 1.4 4.5 23.3 46.1 86.7 213.7 289.6 1,395.4 882.8 2,251.8 5,195.3 Retail trade /i; 59.7 36.9 55.8 53.5 49.1 61.1 28.4 25.5 9.2 35.2 414.4 7;e 514.6 157.0 165.5 141.4 106.5 152.5 52.3 50.0 10.5 61.5 1,411.8 Wholesale trade /b 37.5 36.4 91.8 93.2 100.5 162.2 103.4 200.2 115.8 169.7 1,110.7 7; 439.1 254.8 457.1 369.1 373.6 431.8 213.8 453.9 191.6 285.9 3,470.7 Construction /c 1.9 5.1 15.3 22.4 41.1 63.8 51.4 77.0 70.1 34.4 382.5 Mining 0.5 1.2 6.9 18.6 41.8 59.8 37.9 122.1 ----- 155.7 ---- 444.5 Road haulage 4.0 8.5 19.2 13.5 14.5 21.3 12.9 18.9 11.4* 3.9* 128.1 Bus transport 0.1 0.5 2.2 2.2 4.7 15.2 26.3 50.1 11.9* 6.0* 119.2 Quarrying 0.1 0.1 0.6 1.1 2.9 15.4 12.0 47.8 15.1* 7.6* 102.6 Housing developers 0.4 0.6 2.3 4.2 7.9 21.2 25.0 175.0 110.8 259.0 606.3 Produce brokers /d 3.7 3.2 7.2* 6.7* 5.9* 14.4 9.5* 33.5* 18.9 - 102.8 Finance companies 0.9 1.1 2.4 3.5 4.4 11.3 6.6 23.3* 14.0* 2.4* 69.9 Insurance companies 0.2 0.1 0.2 0.7 1.4 3.1 5.6 30.9 58.8 (1) 101.1 Total 110.4 98.2 227.2 265.7 360.9 662.5 608.6 2,199.7 1,381.1 2,863.4 8,777.4 Value of Gross Out pt (M$ million) Manufacturing /a 312.8 91.0 308.5 407.5 602.4 1,125.3 1,332.2 4,857.6 3,316.8 6,194.5 18,548.6 Retail trade 1W 3,407.7 834.4 911.8 589.9 341.6 482.3 142.1 158.1 13.2 75.9 6,957.0 Wholesale trade /b 3,942.6 1,937.9 3,233.3 2,688.8 2,160.7 1,997.0 1,567.0 1,767.0 839.6 1,122.3 21,256.2 Construction /c 272.4 118.5 277.4 247.6 343.7 362.3 234.1 282.5 110.5 29.4 2,278.4 Mining 46.8 17.0 76.2 129.3 166.9 209.1 140.0 275.0 ----- 229.0 ---- 1,289.3 Road haulage 19.7 23.0 43.4 34.9 43.1 60.0 26.2 33.5 20.2* 6.8* 311.0 Bus transport 0.4 1.5 5.4 4.6 11.5 34.5 59.5 92.9 20.7* 10.4* 241.4 Quarrying 33.4 0.7 3.0 2.5 7.3 32.4 14.4 62.9 11.0* 5.5* 173.1 Mousing developers 109.5 23.7 74.4 86.4 127.7 68.5 102.6 252.6 104.3 102.9 1,072.7 Produce brokers /d 1,433.8 289.6 602.3* 560.9* 209.6* 499.6 779.7* 537.0* 229.0 - 5,141.6 Finance companies 88.2 19.5 47.9 39.9 38.7 106.7 29.4 72.4* 43.5* 7.2* 493.4 Insurance companies 283.3 5.9 32.2 100.3 148.6 218.0 65.9 340.2 91.6 (1) 1,286.1 Total 9,950.6 3,362.7 5,615.8 4,892.6 4,201.6 5,195.7 4,493.1 8,731.7 4,915.4 7,668.9 59,028.8 * Mission's estimate. /a Refers to Annual Survey of Manufacturing Industries. 7; Refers to the "establishments with accounts" only. 77 Refers to establishments with output above M$100,000. 7a Includes rubber, oil palm, copra and coconut brokers; data available for odd years only, specifically refer to 1977. 7;e Refers to the value of total assets (fixed and stocks) as on December 31. 1978R Table 3.9: PENINSULAR MALAYSIA: PR;NCIPAL STATISTICS OF SELECTED SECTORS BY FIXED ASSETS SIZE GROUP, 1973 Fixed Assets Size Group (M$'000) 10 to 20 to 50 to 100 to 200 to 500 to 1,000 to 5,000 to Sectors <10 <20 <50 <100 <200 <500 <1,000 <5,000 <10,000 >10,000 Total Number of Establishments Manufacturing 6,230 1,365 1,241 622 492 441 261 322 55 33 11,060 Retail trade /a 28,021 1,850 1,247 277 111 55 17 8 2 1 31,589 Wholesale trade /a 6,555 1,916 1,612 688 325 201 65 52 4 6 11,424 Construction 399 227 274 179 111 80 20 -------- 9------------ 1,299 Mining 328 144 342 312 162 69 21 48 ……9 ------ 1,435 Number of Persons Engaged Manufacturing 32,486 15,147 21,704 17,311 19,156 30,863 32,693 85,147 22,960 20,467 297,934 Retail trade /a 79,000 9,560 8,125 3,239 2,246 1,797 654 1,142 365 214 106,342 Wholesale trade /a 29,095 12,547 15,495 9,337 6,583 5,779 3,107 4,332 206 474 86,955 Construction 12,197 6,655 12,673 12,759 11,103 16,729 5,660 ----------- 2,359 --------- 80,135 Mining 8,455 3,430 9,678 10,670 5,934 3,913 2,197 8,922 1,409 ----- 54,608 Value AdIded 'MI? m'll4ior.) Manufacturing 86.8 46.5 80.0 83.2 128.4 209.1 245.2 731.2 297.5 419.0 2,326.9 Retail trade /a 266.0 55.6 60.0 31.1 22.2 15.2 12.4 39.2 10.4 2.5 514.6 Wholesale trade /a 341.2 138.4 212.1 211.0 163.8 164.9 116.3 173.4 76.1 83.5 1,680.7 Construction 45.0 23.5 49.2 47.4 48.4 85.3 20.0 ---------- 31.6 --------- 350.6 Mining 36.7 18.1 45.1 64.4 40.1 43.8 28.2 169.4 ----- 27.2 473.0 Value of Fixed Assets (M$ million) Manufacturing 15.8 19.5 39.5 43.9 70.0 141.1 186.8 702.3 365.0 710.8 2,294.7 Retail trade /a 58.4 24.7 36.1 19.2 17.3 17.9 11.2 20.6 15.0 15.9 236.3 /b 406.2 100.9 116.2 57.7 45.7 37.3 21.2 56.9 24.4 16.3 882.8 Wholesale trade /a 37.7 31.0 50.3 52.5 50.9 66.3 50.2 112.6 29.9 68.4 549.8 7-b 408.6 216.4 272.0 212.2 199.0 207.1 154.8 313.7 42.7 84.4 2,110.9 Construction 1.7 3.3 8.9 12.9 15.3 23.6 13.7 ---------- 33.0 ---------- 112.4 Mining 1.1 2.1 11.4 23.1 22.4 19.2 14.4 122.8 ----- 75.0 291.6 Value of Gross Output (M$ million) Manufacturing 310.7 174.8 320.5 321.6 502.3 757.7 934.0 2,259.6 931.9 1,164.6 7,677.7 Retail trade /a 2,572.6 517.9 575.8 231.2 147.6 100.6 94.4 109.4 30.1 10.9 4,390.5 Wholesale trade /a 3,422.6 1,755.4 2,733.8 1,855.5 1,228.9 1,066.3 1,136.6 822.3 245.3 279.8 14,546.5 Construction 130.3 69.5 143.7 132.8 138.4 212.2 55.0 --------- 57.2 ----------- 939.0 Mining 57.6 27.8 78.3 106.6 68.5 64.4 37.3 211.0 ------ 35.6 ----- 686.9 /a Refers to the fixed assets of "establishments with accounts" only in 1974. /b Refers to the total assets (fixed assets and stocks) of "establishments with accounts" only in 1974. Source: See Table 2.2. Table 3.10.1: PENINSULAR MALAYSIA: PRINCIPAL STATISTICS OF SELECTED SECTORS BY FIXED ASSETS SIZE SEGMENTS, 1978 Fixed Assets Size Segment (M$'000) Fixed assets size segment (M$'000) (10 10-199 200-999 >1,000 <10 10-199 200-999 )1,000 Sectors TSEs SSEs MSEs LSEs Total TSEs SSEs MSEs LSEs Total Number of Establishments Value Added (M$ million) Manufacturing 382 2,222 1,069 826 4,499 72.2 411.6 725.9 4,092.6 5,302.3 Retail trade 25,259 5,517 224 17 31,017 374.1 280.2 85.2 59.1 798.6 Wholesale trade 6,325 6,928 632 118 14,003 427.3 993.2 357.0 870.5 2,648.0 Construction 752 1,422 272 54 2,500 118.6 402.2 283.0 217.2 1,021.0 Mining 135 809 258 84 1,286 28.0 202.3 200.5 374.9 805.7 Road haulage 699 1,513 91 9 2,312 6.2 39.9 20.1 18.8 85.0 Housing developers 143 216 102 108 569 15.5 50.2 22.5 25.9 114.1 Produce brokers 2,016 610 58 20 2,704 97.5 131.4 212.6 160.9 602.6 /a Total (12 sectors) 36,211 19,727 2,915 1,326 60,179 1,282.6 2,587.9 2,046.8 6,039.1 11,957.2 Number of Persons Engaged Value of Fixed Assets (M$ million) Manufacturing 8,617 59,946 69,268 239,887 377,718 1.4 160.6 503.3 4,530.0 5,195.3 Retail trade /b 74,147 31,414 8,280 1,858 115,699 59.7 195.3 89.5 69.9 414.4 (514.6) (570.4) (204.8) (122.0) (1,411.8) Wholesale trade /b 26,420 57,488 14,293 10,389 108,590 37.5 321.9 265.6 485.7 1,110.7 (439.1) (1,454.6) (645.6) (931.4) (3,470.7) Construction 18,157 58,678 32,246 14,500 123,581 1.9 83.9 115.2 181.5 382.5 Mining 2,664 23,245 12,808 10,933 49,650 0.5 68.5 97.7 277.8 444.5 Road haulage 2,235 9,978 4,155 2,075 18,437 4.0 55.7 34.2 34.2 128.1 Housing developers 551 2,666 1,559 2,355 7,131 0.4 15.0 46.2 544.8 606.3 Produce brokers 6,905 5,126 2,935 2,441 17,407 3.7 23.0 23.9 52.4 102.8 /a Total (12 sectors) 145,250 254,680 156,573 298,084 854,587 110.4 952.0 1,271.1 6,444.2 8,777.4 /a Includes bus transport, quarrying, and finance and insurance companies, besides the above-mentioned eight sectors. 7E Figures in ( ) refer to the value of total assets (fixed and stocks) as on December 31, 1978. Source: Table 3.8. - 76 - Table 3.11: PENINSULAR MALAYSIA: EMPLOYMENT PER ESTABLISHMENT IN SELECTED SECTORS BY TYPE FOR SMALLEST SIZE GROUPS, 1973/74/75 Unpaid Unpaid Paid family Paid family employees workers Refer- employees workers Full- Part- & pro- ence Full- Part- & pro- Sectors time time prietor Total year time time prietor Total Total employment size group Fixed asseits size group ------------ …5 ------------- --------N$:L0 0 OO - … Manufacturing 0.76 0.17 1.57 2.50 1973 2.86 0.44 1.91 5.21 Retail trade -- 0.20 -- 1.81 2.01 1974 n.a. n.a. n.a. n.a. Wholesale trade -- 1.12 - 1.67 2.79 1974 n.a. n.a. n.a. n.a. Construc- tion /a 2.40 - 0.60 3.00 1975 26.67 0.36 1.10 28.12 Mining 3.05 0.08 1.15 4.28 1974 20.67 0.14 0.99 21.80 Total employment size group Fixed assets size group ----------- 5-9 ------------ ---- M$10,000 - 19,999 ----- Manufacturing 3.71 0.46 2.32 6.49 1973 7.79 1.37 1.94 11.10 Retail trade -- 3.30 - 2.67 5.97 1974 n.a. n.a. n.a. n.a. Wholesale trade - 4.72 -- 1.75 6.47 1974 n.a. n.a. n.a. n.a. Construc- tion /a 6.36 0.07 0.89 7.32 1975 29.93 0.56 1.15 31.65 Mining 7.11 0.40 0.96 8.47 1974 20.75 0.52 1.11 22.38 Total employment size group Fixed assets size group ---------- 10-19 ----------- ---- M$20,000 - 49,999 ---- Manufacturing 10.39 1.03 2.10 13.52 1973 13.83 1.71 1.94 17.48 Retail trade -- 11.19 -- 1.48 12.66 1974 n.a. n.a. n.a. n.a. Wholesale trade -- 11.90 - 1.36 13.25 1974 n.a. n.a. n.a. n.a. Construc- tion /a 13.02 0.22 1.17 14.42 1975 37.20 0.57 1.22 38.99 Mining 15.26 0.48 1.01 16.75 1974 26.30 0.55 1.01 27.86 /a Excludes establishments with output less than M$100,000 in 1975. Source: Census of Manufacturing Industries, op. cit. - 77 - Table 4.1: PENINSUJLAIR MALAYSIA: OPERATIONAL CHARACTERISTICS OF SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978 Total Employment Size Group Sectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >1,000 Total Labor Productivity (Value Added per Person Engagedi in MODO) Mlnuf ctrin /a 4.S* 6.7* 8.5 9.2 9.9 14.7 17.4 18.4 13.3 11.0 13.4* (11.5) (13.2) (14.0) Retail trade /b 3.0* 6.6* 8.4* - 14.3 -- 17.1 11.2 -------- 11.3 ------- 4.8* (4.6) (6.8) (8.4) (6.9) Wholesale trade /b 12.2* 15.5* 17.9* - 30.3 -- 50.9 53.4 -----53.9 ------- 24.0* (13.2) (15.5) (17.9) (24.4) Construction /c 1.9* 3.2* 9.2* 8.2 8.2 7.1 9.3 7.8 10.8 5.2 7.4* (34.5) (10.3) (8.1) (8.3) Mining 4.0 8.3 12.2 8.5 11.5 3.7 31.3 -------- 29.7 16.2 Quarrying 5.9 8.9 10.6 10.0 13.9 14.4 18.0 11.1 - - 13.7 Housing developers 29.4 (-)4.8 4.9 45.4 20.4 6.7 26.1 25.6 - - 16.0 Producer brokers /d 5.9 10.9 29.7 55.6* 60.8* 60.4* 82.9 58.4* 59.3* - 34.6 Finance companies 11.7 6.0 35.5 38.7 21.7 66.3 37.8 28.0 - - 25.3 Insurance companies 92.9 102.5 60.3 42.3 22.4 24.5 68.8 15.6 - 4.1 37.2 Total /f (12 sectors) 4.4 8.8 12.7 - 13.7 -- 16.0 19.9 ------- 14.4 ------- 12.5 (34 sectors) 4.3 8.2 11.2 -- 12.9 --- 15.9 20.0 ------ 14.3 -------- 12.1 Capital Productivity (Value added t Value of Fixed Assets) Manufacturing /a 0.88 1.64 1.27 1.19 1.07 1.17 1.12 1.03 0.80 0.94 1.02* Retail trade f/i 2.21 1.57 1.68 - 2.32 --- 3.22 1.42 - … 0.99 ------- 1.96* 7e 0.56 0.46 0.50 - 0.70 -- 0.93 0.60 ------ 0.43 -------- 0.57 Wholesale trade /b 2.61 2.21 2.05 - 2.64-- 3.02 2.77 ------- 1.63 -------- 2.38* Ie 0.67 0.65 0.63 -- 0.89 -- 1.01 0.89 ------- 0.68 -------- 0.76 Construction 7c 2.81 2.80 2.46 2.32 1.52 2.91 3.30 3.69 2.65 3.33 2.67* (2.79) (2.80) (2.46) (2.67) Mining 0.25 0.66 2.19 1.84' 1.61 1.59 1.98 ----- 2.12 -------- 1.81 Quarrying 1.00 0.50 0.73 0.38 1.09 1.00 1.69 0.48 - - 0.90 Housing developers 0.11 0.05 0.04 0.57 0.56 0.12 0.61 0.57 - - 0.19 Producer brokers /d 2.57 2.87 4.96 4.60* 6,02* 8.98* 9.89 6.12* 6.10* - 5.86 Finance companies 0.41 0.83 2.72 4.26 1.47 2.67 8.12 0.43 - - 1.62 Insurance companies 19.60 186.00 2.00 6.31 4.59 1.58 3.44 7.14 - 0.22 2.86 Total /f (12 sectors) 1.50 1.64 1.41 - 1.68 --- 1.55 1.56 ------ 1.05 ---…---- 1.36 (34 sectors) 1.46 1.59 1.36 -- 1.66 --- 1.58 1.53 -------- 0.95 -------- 1.29 Capital-Labor Ratio (Value of Fixed Assets in pO er Person Manufacturing /a 5-5* 4.1* 6.7 7.7 9.3 12.6 15.6 17.9 16.6 11.7 13.1* ( 13.1) (S.1) (13.8) Retail trade /b 1.3* 4.2* 5.0* --- 6,.7 -- 5.3 7.9 3.0 --- 39.4 --- 2.5* (2.1) (4.3) (5.0) (3.6) /e 8.3 14.9 16.6 - 20.4 -- 18.4 18.5 ------- 26.6 ------- 12.2 Wholesale trade 7b 4.7* 7.0* 8.8 -- 11.5 --- 16.8 19.3 19.2 -- 114.2 10.0* (5.1) (7.0) (10.2) /e 19.2 23.9 28.6 - 34.1 -- 50.4 59.7 ------- 79.1 ------- 32.0 Construction /c 0.7* 1.1* 3.8* 3.5 5.4 2.4 2.8 2.1 4.1 1.6 2.8* (12.4) (3.7) (3.3) (3.1) Mining 16.0 12.7 5.6 4.6 7.1 8.7 15.8 20.2 --- 3.8 --- 9.0 Quarrying 5.9 17.8 14.5 26.1 12.7 1.4 10.7 22.9 - 15.3 Housing developers 258.0 102.6 111.0 79.1 36.1 56.5 42.,4 44.7 - 85.0 Producer brokers /d 2.3 3.8 6.0 12.1 10.1 6.7 8.4 9.5 9.7 5.9 Finance companies 28.5 7.2 13.0 9.1 14.7 24.9 4.7 65.4 - 15.6 Insurance companies 4.7 0.6 30.2 6.7 4.9 15.5 20.0 2.2 - 18.9 13.0 Total /f (12 sectors) 2.9 5.4 9.0 --- 8.4 -- 10.3 12.8 ------ 13.7 ------- 9.2 (34 sectors) 2.9 5.2 8.3 --7.8 -- 10.1 13.1 ------- 15.0 -------- 9.4 Value Added as Percent of Gross Output Manufacturing 25 29 28 28 25 30 28 27 35 29 29 Retail trade 8 9 8 ---- 12 -- 17 18 ---------- 22 -------- 10 Wholesale trade 9 9 9 --- 12 -- 21 26 --------- 18 -------- 12 Construction 44 36 40 42 43 43 49 46 49 42 45 Mining 50 42 56 51 53 58 75 ---------- 77 ------- 62 Quarrying 50 56 55 55 62 52 50 38 - 53 Housing developers 11 -3 3 21 19 7 19 17 - 11 Producer brokers /d 4 3 7 10 15 20 24 23 23 12 Finance companies 28 12 35 30 13 37 14 19 - 23 Insurance companies 22 43 24 18 10 10 35 33 - 34 22 Total /f (12 sectors) 11 11 12 19 19 26 31 --------- 29 -------- 20 * Mission's estimate. /a Figures in ( ) refer to the Annual Survey of Manufacturing Industries, 1978. 7i Figures in ( ) refer to the "establishment with accounts" only. 7W Figures in ( ) refer only to the establishment with output over M$100,000 in 1978. 7i Data available for odd years only, specifically refer to 1977. 7e Value of total assets (fixed assets and stocks) instead of fixed assets (as on December 31, 1978) has been used. /f Includes road haulage and bus transport, besides the above-mentioned ten sectors. Source: Tables 3.1 to 3.5. - 78 - Table 4.2: PENINSULAR MALAYSIA: OPERATIONAL CHARACTERISTICS OF SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1973 Total Employment Size Group Sectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 )1,000 Total Labor Productivity (Value Added per Person Engaged in M$'000) Manufacturing 2.5 3.5 4.4 5.8 6.2 8.4 9.6 9.9 7.7 '9.5 7.8 Retail trade /a 2.0* 4.8* 6.3* -- 14.7 --- lq.9 5.5 28.5 - - 3.3* (3.0) (4.9) (6.3) (4.8) Wholesale trade /a 9.5* 11.4* 16.5* -- 27.2 --- 47.8 31.0 37.3 - - 19.0* (10.2) (11.4) (16.5) (19.3) Construction /b 0.4* 1.4* 3.1* 3.5 3.9 4.4 4.0 5.1 ---- 4.6 ---- 3.8* --- (5.8) ---- (4.4) (4.4) Mining 5.6 7.0 4.3 5.1 5.8 8.0 16.7 17.4 - - 8.7 Capital Productivity (Value added V- alue of Fixed Assets) Manufacturing 1.35 1.49 1.40 1.49 1.03 1.14 1.00 0.80 0.81 1.33 1.01 Retail trade /a 2.53 2.49 2.51 -- 2.52 --- 3.92 0.50 1.21 - - 2.18 /c 0.57 0.51 0.57 1.01 0.29 0.56 - - 0.58 Wholesale trade /a 3.33 2.81 2.87 -- 3.11 --- 3.36 2.64 3.79 - - 3.06 /c 0.83 0.66 0.77 -- 0.83 --- 1.03 0.72 0.78 - - 0.80 Construction /b 3.33* 3.42*. 2.52* 2.77 2.13 3.62 1.68 6.15 ---- 7.17 --- 3.12* -- (2.60) --- (2.53) (3.12) Mining 1.33 0.32 2.48 2.72 2.65 1.18 1.26 1.94 - - 1.62 Capital-Labor Ratio (Value of Fixed Assets in M$'000 per Person Engaged) Manufacturing 1.9 2.4 3.2 3.9 6.1 7.4 9.5 12.3 8.6 7.2 7.7 Retail trade /a 0.8 1.9 2.5 --- 5.8 --- 3.0 11.2 23.6 - - 1.5 /c 3.4 9.3 10.7 -- 20.1 --- '11.8 19.1 51.3 - - 5.6 Wholesale trade /a 2.8 4.1 5.7 -~- 8.7 --- 14.2 11.8 9.8 - - 6.2 /c 11.5 17.3 21.4 -- 33.0 --- 46.4 43.1 48.0 - - 23.9 Construction /b 0.1* 0.4* 1.2* 1.3 1.9 1.2 2.4 0.8 ---- 0.6 ---- 1.2* --- (2.2) ---- (1-7) (1.4) Mining 4.2 21.6 1.7 1.9 2.2 6.8 13.2 8.9 - - 5.3 Value Added as Percent of Gross Output Manufacturing 9 32. 28 29 32 43 42 26 32 27 30 Retail trade /a 11 9 9 ---- 16 --- 15 17 38 - - 12 Wholesale trade /a 7 8 9 ---- 12 --- 21 20 25 - 12 Construction /b ----- 25 31 31 35 38 36 42 ----- 41 ---- 37 Mining 67 58 54 60 59 65 80 81 - 69 * Mission's estimate. /a Refers to 1974. Figures in ( ) refer to the "establishments with accounts" only. /b Figures in ( ) refer only to the establishments with output above 14$100,000 in 1973. /c Value of total assets (fixed assets and stocks) instead of fixed assets (as on December 31, 1974) has been used. Source: Table 3.6. _ /9 _ Table 4.3.1: PENINSULAR MALAYSIA: OPERATIONAL CHARACTERISTICS OF SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1978 TSEs <--- SSEs ------> MSEs LSEs Sectors <5 5-.9 10-49 5-49 50-199 >200 Total Labor Productivity (Value added per person engaged in M$ '000) Manufacturing 4.8 6.7* 9.3 8.8* 16.0 14.4 13.4* Retail trade 3,0* 6.6* 10.4 8.2* 14.3 11.3 4.8* Wholesale trade 12.2* 15.5* 23.2 19.9* 52.1 53.9 24.0* Construction 1.9* 3.2* 8.5 6.5* 8.2 8.3 7.4* Mining 4.0 8.3 10.6 10.5 22.4 29.7 16.2 Road haulage 3.4 3.6 4.4 4.1 4.5 10.8 4.6 Housing developers 29.4 (-)4.8 18.2 12.9 16.2 25.6 16.0 Produce brokers 5.9 10.9 46.7 30.4 69.6 58.6 34.6 /a Subtotal (12 sector-Y 4.4 8.8 13.3 11.9 18.0 14.4 12.5 Total (34 sectors) 4.3 8.2 12.3 10.9 17.9 14.3 12.1 Capital Productivity (Value added t Value of fixed assets) Manufacturing 0.88 1.64* 1.14) 1.20 1.14 0.94 1.02* Retail trade /b 2.22* 1.57* 1.93* 1.75 2.20 0.99 1.96* (0.76*) 0.46* 0.58* (0.52) (0.78) (0.43) (0.64*) Wholesale trade /b 2.61** 2.21* 2.34* 2.29 2.89 1.63 2.38* (0.71*) 0.65* 0.75* (0.71) (0.95) (0.68) (0.77*) Construction 2.81* 2.80* 1.96* 2.07* 3.11 3.17 2.67* Mining 0.25 0.66 1.74 1.70 1.84 2.12 1.81 'Road haulage 0.52 0.55 0.75 0.67 0.88 0.60 0.66 Housing developers 0.11 (-)0.05 0.22 0.15 0.33 0.57 0.19 Produce brokers 2.57 2.87 5.35 4.69 9.40 5.86 5.86 /a Subtotal (12 sectors) 1.50 1.64 1.55 1.57 1.59 1.07 1.37 Total (34 sectors) 1.45 1.58 1.52 1.53 1.59 0.96 1.30 Capital-Labor Ratio (Value of fixed assets in M$ '000 person engaged) Manufacturing 5.5* 4.1* 8.2 7.3* 14.1 15.3 13.1 Retail trade lb 1.3* 4.2* 5.4 4.7* 6.5 11.5 2.5* (3.9*) (11.2*) (17.8*) (15.9*) (18.4*) (26.6) (7.5*) Wholesale trade /b 4.7* 7.0* 9.9 8.7* 18.0 33.1 10.0* (17.3*) (23.8) (30.9) (27.9*) (54.9) (79.1) (31.3*) Construction 0.7* 1.1* 4.3* 3.1* 2.6 2.6 2.8* Mining 16.0 12.7 6.1 6.2 12.2 14.0 9.0 /c Subtotal (12 sectorsY 2.9 5.4 8.6 7.5 11.3 13.4 9.1 Total (34 sectors) 2.9 5.2 8.1 7.1 11.3 14.8 9.3 * Mission's estimate. /a Includes bus transport, quarrying, and finance and insurance companies, besides the above-mentioned eight sectors. /b Figures in ( ) refer to "establishments with accounts" only. /c Includes road haulage, housing developers, produce brokers, bus transport, quarrying, and finance and insurance companies, besides the above-mentioned five sectors. Source: Tables 3.7.1. - 80 - Table 4.4.1: PENINSULAR MALAYSIA: OPERATIONAL CHARACTERISTICS OF SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1973 TSEs <- -- SSEs -------> MSEs LSEs Sectors <5 5-9 10-49 5-49 50-199 >200 Total Labor Productivity (Value added per person engaged in M$ '000) Manufacturing 2.5 3.5 5.5 5.1 9.0 9.2 7.8 Retail trade 2.0* 4.8* 9.2* 6.6* 9.1 28.5 3.3* Wholesale trade 9.5* 11.4* 20.8 17.0* 40.3 37.3 19.0* Construction 0.4* 1.4* 3.5* 2.9* 4.2 4.9 3.8* Mining 5.6 7.0 5.4 5.4 12.7 17.4 8.7 Capital Productivity (Value added . Value of fixed assets) Manufacturing 1.35 1.49 1.21 1.24 1.06 0.93 1.01 Retail trade 2.53* 2.49* 2.51* 2.51* 1.37 1.21 2.21* (0.58*) (0.51*) (0.67*) 0.59* (0.61) (0.56) (0.58*) Wholesale trade 3.33* 2.81* 3.008 2.94* 3.07 3.79 3.06 (0.83*) (0.66*) (0.80*) 0.75* (0.90) (0.78) (0.80*) Construction 3.33* 3.42* 2.33* 2.45 2.34 6.56 3.12 Mining 1.33 0.32 2.65 2.33 1.24 1.94 1.62 Capital-Labor Ratio (Value of fixed assets in M$ '000 person engaged) Manufacturing 1.9 2.4 4.6 4.1 8.5 9.9 7.7 Retail trade 0.8* 1.9* 3.7* 2.6'1 6.6 23.6 1.5* (3.4*) (9.3*) (13.7*) (11.1*) (15.0) (51.3) (5.6*) Wholesale trade 2.8 4.1* 6.9* 5.8* 13.1 9.8 6.2* (11.5) (17.3*) (26.1*) (22.5*) (44.9) 48.0 (23.9*) Construction 0.1* 0.4* 1.5 1.2* 1.8 0.7 1.2* Mining 4.2 21.6 2.1 2.3 10.2 8.9 5.3 * Mission's estimate. Figures in ( ) refer to total assets (fixed assets and stocks) as on December 31, 1974. Source: Tables 3.7.2. - 81 - Table 4.5: PENINSULAR MALAYSIA: OPERATIONAL CHARACTERISTICS OF SELECTED SECTORS BY FIXED ASSETS SIZE GROUP, 1978 Fixed Assets Size Group (M$'000) 10 to 20 to 50 to 100 to 200 to 500 to 1,000 to 5,000 to Sectors <10 <20 <50 <100 <200 <500 <1,000 <5,000 <10,000 >10,000 Total Labor Productivity (Value Added per Person Engaged in M$'000) Manufacturing /a 8.4 5.7 5.6 7.0 7.9 9.7 11.2 14.4 16.2 21.2 14.0 Retail trade /b 5.0 6.7 9.3 12.3 9.1 9.7 13.2 31.2 14.1 36.3 6.9 Wholesale trade /b 16.2 13.0 14.9 18.8 25.5 22.5 31.1 57.1 126.8 137.9 24.4 Construction /c 6.5 5.3 6.4 6.4 8.4 8.1 10.0 16.0 12.4 15.0 8.3 Mining 10.5 5.9 8.0 8.9 9.4 12.3 24.5 31.7 --- 37.7 ----- 16.2 Capital Productivity (Value added - Value of Fixed Assets) Manufacturing /a 51.57 6.64 3.62 2.71 1.99 1.55 1.36 1.06 1.08 0.74 1.02 Retail trade /b 6.27 2.00 1.73 1.36 0.75 1.08 0.68 1.21 0.23 0.74 1.93 Id 0.73 0.47 0.58 0.51 0.35 0.43 0.37 0.62 0.20 0.42 0.57 Wholesale trade /b 11.39 4.64 3.30 2.88 2.52 1.40 1.25 1.91 2.00 1.51 2.38 Id 0.97 0.66 0.66 0.73 0.68 0.53 0.61 0.84 1.21 0.89 0.76 Construction /c 62.42 8.82 7.27 4.25 3.67 2.58 2.31 1.99 0.66 0.53 2.67 Mining 56.00 7.83 5.70 3.63 2.06 1.90 2.29 1.61 ---- 1.15 1.81 Capital-Labor Ratio (Value of Fixed Assets in M$'000 per Person Engaged) Mlanufacturing /a 0.2 0.9 9.5 2.6 4.0 6.3 8.2 13.6 15.0 28.8 13.8 Retail trade /b 0.8 3.4 5.3 9.1 12.1 9.0 19.4 25.7 61.7 49.0 3.6 7d 6.9 14.3 15.9 24.0 26.2 22.4 35.6 50.5 70.5 85.7 12.2 Wholesale trade /b 1.4 2.8 4.5 6.5 10.1 16.0 24.8 29.8 63.4 91.6 10.2 /d 16.6 19.6 22.5 25.9 37.6 42.6 51.4 67.7 104.9 154.3 32.0 Construction /c 0.1 0.6 0.8 1.5 2.3 3.1 4.3 8.0 18.9 28.3 3.1 Mining 0.2 0.8 1.4 2.5 4.6 6.5 10.7 19.7 ---- 32.9 ----- 9.0 Value Added as Percent of Gross Output Manufacturing /a 23 33 27 31 29 29 30 30 29 27 29 Retail trade /b 11 9 11 12 11 14 14 20 16 34 11 Wholesale trade /b 11 9 9 10 12 11 8 22 28 23 12 Construction /c 44 38 40 38 44 45 51 54 42 62 45 Mining 60 55 52 52 52 54 62 71 ------ 78 ----- 62 /a Refers to Annual Survey of Manufacturing Industries. /b Refers to the "establishments with accounts" only. Ic Refers to establishments with output above M$100,000. /d Refers to the value of total assets (fixed and stocks) as on December 31, 1978. Source: Table 3.8. Table 4.6: PENINSULAR MALAYSIA: OPERATIONAL CHARACTERISTICS OF SELECTED SECTORS BY FIXED ASSETS SIZE GROUP, 1973 Fixed Assets Size Group (M$'000) 10 to 20 to 50 to 100 to 200 to 500 to 1,000 to 5,000 to Sectors <10 <20 (50 <100 <200 <500 <1,000 <5,000 <10,000 >.10,000 Total Labor Productivity (Value Added per Person Engaged in M$'000) Manufacturing 2.7 3.1 3.7 4.8 6.7 6.8 7.5 8.6 13.0 20.5 7.8 Retail trade /a 3.4 5.8 7.4 9.6 9.9 8.5 19.0 34.3 28.5 11.7 4.8 Wholesale trade /a 11.7 11.0 13.7 22.6 24.9 28.5 37.4 40.0 369.4 176.2 19.3 Construction 3.7 3.5 3.9 3.7 4.4 5.1 3.5 …13.4 4.4 Mining 4.3 5.3 4.7 6.0 6.8 11.2 12.8 19.0 19.3 --- 8.7 Capital Productivity (Value Added - Value of Fixed Assets) Manufacturing 5.49 2.38 2.03 1.90 1.83 1.48 1.31 1.04 0.82 0.59 1.01 Retail trade /a 4.55 2.25 1.66 1.62 1.28 0.85 1.11 1.90 0.69 0.16 2.18 Wholesale trade /a 9.05 4.46 4.22 4.02 3.22 2.49 2.32 1.54 2.55 1.22 3.06 1 Construction 26.47 7.12 5.53 3.67 3.16 3.61 1.46 --------- 0.96 --------- 3.12 X Mining 33.36 8.62 4.00 2.79 1.79 2.28 2.00 1.38 ---- 0.36 ---- 1.62 Capital-Labor Ratio Value of Fixed Assets in M$'000 per Person Engaged Manufacturing 0.5 1.3 1.8 2.5 3.7 4.6 5.7 8.2 15.9 34.7 7.7 Retail trade /a 0.7 2.6 4.4 5.9 7.7 10.0 17.1 18.0 41.1 74.3 2.2 Wholesale trade /a 1.3 2.5 3.2 5.6 7.7 11.5 16.2 26.0 145.1 144.3 6.3 Construction 0.1 0.5 0.7 1.0 1.4 1.4 2.4 … 14.0 ----i-- 1.4 Mining 0.1 0.6 1.2 2.2 3.8 4.9 6.6 13.8 ---- 53.2 ---- 5.3 Value Added as Percent of Gross Output Manufacturing 28 27 25 26 26 28 26 32 32 36 30 Retail trade /a 10 11 10 13 15 15 13 36 35 23 12 Wholesale trade /a 10 8 8 11 13 15 10 21 31 30 12 Construction 35 34 34 36 35 40 36 ----------- 55 --- 37 Mining 64 65 58 60 59 68 76 80 ----- 76 69 /a Refers to the fixed assets of "establishments with accounts" only in 1974. Source: Table 3.9. - R3 - Table 5.1.1 Page 1 of 1 Table 5.1.1: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF PRINCIPAL STATISTICS IN EMPLOYMENT SIZE SEGMENTS BY SELECTED SECTORS, 1978 TSEs <------- SSEs MSEs LSEs Sectors <5 5-9 10-49 5-49 50-199 >200 Total Number of Establishments Manufacturing 4.9* 13.9* 23.2 17.5* 44.2 66.3 8.8* Retail trade 73.6 21.1 9.6 16.6 4.7 1.4 59.0 Wholesale trade 8.3 26.7 21.7 24.7 6.6 2.2 11.9 Construction 1.1* 17.8* 14.3* 16.5* 20.6 16.5 5.0 Mining Neg. 0.4 8.9 3.7 7.9 1.5 1.0 Road haulage 1.6 2.5 2.3 2.4 2.3 0.7 1.8 Produce brokers 2.0 2.9 1.8 2.5 1.5 1.2 2.1 Housing developers 0.3 0.8 1.5 1.0 1.0 0.3 0.4 /a Subtotal (12 sectors) 92.2 88.2 86.4 87.5 94.7 95.2 91.2 Total (34 sectors) 100.0 100.0 100.0 100.0 100.0 100.0 100.1 Number of Persons Engaged Manufacturing 6.7* 15.3* 27.1* 23.2* 45.7 72.1 38.1* Retail trade 67.8 19.3 7.2 11.2 4.7 0.8 17.7 Wholesale trade 10.5 26.4 17.6 20.5 6.3 1.4 10.4 Construction 1.9* 18.8* 15.3* 16.4* 20.5 13.7 13.8 Minning Neg. 0.4 11.8 8.1 7.8 1.2 4.7 Road haulage 2.1 2.5 2.3 2.3 2.0 0.5 1.7 Produce brokers 2.4 2.8 1.6 2.0 1.4 0.8 1.6 Housing developers 0.3 0.8 1.3 1.1 1.0 0.2 0.7 /a Subtotal (12 sectors) 92.1 88.2 87.7 87.9 95.2 94.7 92.1 Total (34 sectors) 100.0 100.0 100.0 100.0 100.0 100.0 100.1 * Mission's estimate. Table 5.1.1 - 84- Page 2 of 2 Table 5.1.1: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF P'RINCIPAL STATISTICS IN EMPLOYMENT SIZE SEGMENTS BY SELECTED SECTORS, 1978 TSEs <------- SSEs -------…> MSEs LSEs Sectors <5 5-9 10-49 5-49 50-199 )200 Total Value Added Manufacturing 7.5* 12.5* 20.6 18.6* 40.9 72.9 42.3* Retail trade 47.1* 15.5* 6.1* 8.4* 3.8 0.7 7.0* Wholesale trade 30.0* 50.0* 33.3* 37.4* 18.4 5.3 20.6* Construction 0.8* 7.3* 10.6* 9.8* 9.3 7.9 8.4* Mining Neg. 0.5 10.2 7.8 9.8 2.5 6.2 Road haulage 1.7 1.1 0.8 0.9 0.5 0.4 0.7 Produce brokers 3.3 3.7 6.2 5.6 5.4 3.4 4.7 Housing developers 1.8 (-)0.5 1.9 1.3 0.9 0.3 0.9 /a Subtotal (12 sectors) 95.3* 95.3* 95.3* 95.3* 95.3 95.3 95.3 Total (34 sectors) 100.0 100.0 100.0 100.( 100.0 100.0 100.0 Value of Fixed Assets Manufacturing 12.5* 12.1* 27.5 23.8* 57.0 74.5 53.6* Retail trade 30.9* 15.6* 4.8 7.4* 2.7 0.7 4.7* Wholesale trade 16.7* 35.7* 21.6* 25.0* 10.1 3.2 11.2* Construction 0.4* 4.1* 8.2* 7.2* 4.8 2.4 4.1* Mining 0.1 1.1 8.9 7.0 8.5 1.2 4.5 Road haulage 4.6 3.2 1.6 2.0 0.9 0.7 1.3 Produce brokers 1.9 2.1 1.8 1.8 0.9 0.5 1.0 Housing developers 22.5 15.6 13.2 13.8 4.2 0.5 6.1 /a Subtotal (12 sectors) 92.4 92.1 93.2 93.0 95.0 85.9 90.5 Total (34 sectors) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 * Mission's estimate. /a Includes bus transport, quarrying, andl finance and insurance companies, besides the above-mentioned eight sectors. Source: Table 3.7.1. Table 5.2.1: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF PRINCIPAL STATISTICS IN FIXED ASSETS SIZE SEGMENTS BY SELECTED SECTORS, 1978 Fixed Assets Size Segment (M$'000) Fixed Assets Size Segment (M$'000) <10 10-199 200-999 >1,000 <10 10-199 200-999 >1,000 Sectors TSEs SSEs MSEs LSEs Total TSEs SSEs MSEs LSEs Total Number of Establishments Value Added Manufacturing 1.1 11.3 36.7 62.3 7.5 5.6 15.9 35.5 67.8 44.3 Retail trade 69.8 28.0 7.7 1.3 51.5 29.2 10.8 4.2 1.0 6.7 Wholesale trade 17.5 35.1 21.7 8.9 23.3 33.3 38.4 17.4 14.4 22.1 Construction 2.3 7.2 9.3 4.1 4.2 9.2 15.5 13.8 3.6 8.5 Mining 0.4 4.1 8.9 6.3 2.1 2.2 7.8 9.8 6.2 6.7 Road haulage 1.9 7.7 3.1 0.7 3.8 0.5 1.5 1.0 0.3 0.7 Housing developers 0.4 1.1 3.5 8.1 0.9 1.2 1.9 1.1 0.4 1.0 Produce brokers 5.6 3.1 2.0 1.5 4.5 7.6 5.1 10.4 2.7 5.0 /a Total (12 sectors) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Number of Persons Engaged Value of Fixed Assets L Manufacturing 5.9 23.5 44.2 80.5 44.2 1.3 16.9 39.6 70.3 59.2 Retail trade 51.0 12.3 5.3 0.6 13.5 54.1 20.5 7.0 1.1 4.7 Wholesale trade 18.2 22.6 9.1 3.5 12.7 34.0 33.8 20.9 7.5 12.7 Construction 12.5 23.0 20.6 4.9 14.5 1.7 8.8 9.1 2.8 4.4 Mining 1.8 9.1 8.2 3.7 5.8 0.5 7.2 7.7 4.3 5.1 Road haulage 1.5 3.9 2.6 0.7 2.2 3.6 5.9 2.7 0.5 1.5 Housing developers 0.4 1.0 1.0 0.8 0.8 0.4 1.6 3.6 8.5 6.9 Produce brokers 4.8 2.0 1.9 0.8 2.0 3.4 2.4 1.9 0.8 1.2 /a Total (12 sectors) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 /a Includes bus transport, quarrying, and finance and insurance companies, besides the above- mentioned eight sectors. Source: Table 3.8. Table 6.1: PENINSULAR MALAYSIA. PERCENT DISTRIBUTION OF NUMBER OF ESTABLISHMENTS IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978 Total Employment Size Group Sectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >1,000 Total Manufacturing 41.7* 21.7* 9.3 7.0 6.8 6.5 3.5 2.4 0.7 0.4 100.0* Retail trade /b 93.5 4.9 1.2 ----0.3---- 0.1 Neg. Neg. - Neg. 100.0 (84.8) (11.3) (2.8) ---(0.7)--- (0.3) (0.1) (Neg.) (-) (Neg.)(100.0) Wholesale trade /b 51.9 30.9 12.0 ----4.0---- 0.8 0.3 Neg. - Neg. 100.0 (48.2) (33.2) (13.0) ---(4.3)--- (0.8) (0.4) (0.1) (-) (Neg.)(100.0) Construction 16.2* 48.9* 13.0* 6.2 6.0 5.5 2.7 1.2 0.3 Neg. 100.0 Mining 0.6 5.6 17.6 29.1 30.8 10.9 4.7 0.6 - Neg. 100.0 Rvoad haulage 66.9 19.3 6.9 2.0 2.2 2.2 0.4 0.2 - - 100.0 Bus transport 14.0 23.7 13.7 6.8 7.9 15.5 10.1 6.8 1.4 - 100.0 Quarrying 3.2 12.1 26.8 19.5 17.9 15.3 4.7 0.5 - - 100.0 Housing developers 42.7 23.7 20.0 4.9 3.9 3.0 1.4 0.4 - - 100.0 Produce brokers Id 72.0 19.1 4.7 1.1 1.5 1.0 0.4 0.2 Neg. - 100.0 X Finance companies 45.4 35.3 11.8 3.5 2.2 1.1 0.5 0.2 - - 100.0 Insurance companies 40.6 21.4 10.3 7.7 6.6 7.4 4.1 1.5 - 0.4 100.0 Subtotal 75.8 13.3 4.6 -===3.7---- 1.4 0.7 0.4 0.1 Meg. 100.0 professions /e 42.8 31.2 16.6 4.7 2.9 1.3 0.4 0.2 Neg. - 100.0 Other services /f 73.9 14.5 6.6 2.2 1.4 0.8 0.3 0.2 0.1 Neg. 100.0 Total (34 sectors) 74.9 13.8 5.0 ----3.8---- 1.4 0.7 0.3 0.1 Neg. 100.0 * Mission's estimate. See Table 3.1 for footnotes and source. Table 6.2: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF NUMBER OF PERSONS ENGAGED IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978 Total Employment Size Group Sectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >.1,000 Total Manufacturing 3.4* 4.3* 3.7 4.7 7.1 12.6 13.4 19.5 13.2 18.2 100.0* Retail trade /b 72.5 11.6 5.8 ----3.0---- 3.1 2.7 1.0 - 0.3 100.0 (55.8) (18.2) (9.5) ---(4.9)--- (5.0) (4.4) (1.6) (-) (0.5) (100.0) Wholesale trade /b 19.1 27.0 21.4 ---15.6---- 7.0 6.3 3.1 - 0.5 100.0 (17.5) (27.4) (21.9) --(15.9)--- (7.1) (6.4) (3.2) (-) (0.5) (100.0) Construction 2.6* 14.5* 7.9* 6.5 9.8 16.4 15.8 14.5 7.9 4.1 100.0 Mining Neg. 1.0 6.8 18.5 30.0 18.6 18.1 4.4 - 2.7 100.0 Road haulage 22.9 15.2 12.1 5.9 10.8 18.8 6.0 8.4 - - 100.0 Bus transport 0.7 2.4 3.1 2.8 4.8 17.1 22.7 32.8 13.7 - 100.0 Quarrying 0.3 2.3 10.9 13.6 18.7 30.2 20.0 4.1 - - 100.0 Housing developers 7.3 12.5 21.0 9.3 11.8 16.0 15.3 6.8 - - 100.0 Produce brokers /d 27.9 18.3 9.2 4.0 8.6 10.9 7.5 9.3* 4.3* - 100.0 Finance companies 11.3 29.1 18.8 10.3 10.0 7.5 8.2 4.8 - - 100.0 Insurance companies 2.7 4.7 5.3 6.9 9.0 17.6 20.6 16.5 - 16.7 100.0 Subtotal 19.0 10.2 7.4 ---13.4---- 11.3 11.1 12.1 7.0 8.5 100.0 Professions /e 11.1 21.3 23.2 11.5 11.4 9.2 5.0 5.3 2.0 - 100.0 Other services If 22.5 13.3 12.7 7.3 8.2 7.1 5.8 9.8 3.1 10.0 100.0 Total (34 sectors) 19.0 10.6 8.1 ---13.7---- 11.0 10.7 11.8 6.6 8.4 100.0 * Mission's estimate. See Table 3.1 for footnotes. Source: Table 3.2. Table 6.3: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF VALUE ADDED IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978 Total Employment Size Group Sectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >1,000 Total Manufacturing 1.2* 2.1* 2.4 3.2 5.2 13.8 17.4 26.7 13.1 14.9 100.0* Retail trade 44.8* 15.8* 10.2* ----9.0---- 10.9 6.3 3.0 /g - /h 100.0 Wholesale trade 9.7* 17.4* 16.0* ---19.8---- 14.8 14.0 8.2 /g - /h 100.0 Construction 0.7* 6.2* 9.9* 7.1 10.8 15.7 19.8 15.3 11.6 2.9 100.0 Mining Neg. 0.5 5.1 9.7 21.2 15.7 34.8 12.9 /g - /h 100.0 Road haulage /i 16.8 12.0 10.6 6.1 10.6 19.1 4.9 19.8 - - 100.0 Bus transport 7Ti 0.6 2.1 2.2 2.4 3.8 17.1 25.4 31.2 15.0 100.0 AQuarrying 01 1.5 08. 0.0 10.0 31.80 6.2) 3. - - 100 . Housing developers 13.3 -3.8 6.4 26.3 15.1 6.7 25.0 10.9 - - 100.0 Produce brokers /d 4.8 5.8 7.9 6.4* 15.1* 19.1* 17.9 15.7* 7.4* - 100.0 Finance companies /i 5.2 6.9 26.4 15.8 8.6 19.8 12.2 5.3 - - 100.0 X Insurance 6.8 12.9 8.6 7.9 5.4 11.6 38.2 6.9* - 1.8* 100.0 X companies /i Subtotal 6.7 7.2 7.5 ---14.6---- 14.5 17.8 17.5 7.3 6.9 100.0 Professions /e /i 100.0 Other services /f /i 10.0 Total (34 sectors) 6.7 7.2 7.5 ---14.6---- 14.5 17.8 17.6 7.3 6.9 100.0 * Mission's estimate. See Table 3.1 for footnotes. Source: Table 3.3. Table 6.4: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF FIXED ASSETS IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978 Total Employment Size Group Sectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >1,000 Total Manufacturing 1.4* 1.3* 1.9 2.8 5.0 12.1 15.9 26.6 16.7 16.2 100.0* Retail trade 39.6* 19.7* 11.8* --- 7.6 -- 6.6 8.7 1.2 ---- 4.8 ---- 100.0* Wholesale trade 8.9* 18.8* 18.7* -- 17.8 -- 11.7 12.1 6.0 ---- 6.0 --- 100.0* Construction 0.6* 5.9* 10.7* 8.2 18.9 14.5 16.0 11.0 11.7 2.3 100.0* Mining - 1.4 4.2 9.6 23.8 18.0 31.9 9.9 - 1.1 100.0 Road haulage 21.4 14.5 11.0 6.0 7.2 13.0 5.2 21.7 - - 100.0 Bus transport 0.8 3.0 2.7 2.6 5.6 16.7 26.0 25.0 17.5 - 100.0 Quarrying 0.1 2.7 10.2 23.1 15.5 28.4 13.9 6.0 - - 100.0 Housing developers 22.0 15.1 27.4 8.6 5.0 10.6 7.7 3.6 - - 100.0 Produce brokers /d 10.9 11.8 9.3 8.2 14.7 12.5 10.6 15.1* 7.1* - 100.0 Finance companies 20.6 13.4 15.7 6.0 9.4 12.0 2.4 20.0 - - 100.0 Insurance companies 1.0 0.2 12.3 3.6 3.4 21.0 31.7 2.8 - 24.2 100.0 X Total 6.1 6.0 7.3 -- 12.2 -- 12.4 15.3 18.9 -- 21.8 --- 100.0 Professions /e 18.1 31.2 24.1 9.3 8.8 5.7 1.0 1.1 0.7 - 100.0 Other services /f 3.7 2.7 4.5 3.0 3.7 3.7 10.7 5.2 9.3 53.6 100.0 Total (34 6.0 5.9 7.2 -- 11.8 -- 11.6 14.8 17.5 --- 25.3 --- 100.0 sectors) -------------------- Total Assets (fixed assets and stocks) ------------------ Retail trade /g 37.8 22.2 13.0 -- 8.2 -- 7.5 6.7 ------ 4.6 --------- 100.0 Wholesale trade /g 10.6 20.5 19.5 -- 17.0 -- 11.2 12.0 9.2 --------- 100.0 * Mission's estimate. See Table 3.4 for footnotes and source. Table 6.5: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF GROSS OUTPUT IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978 Total Employment Size Group Sectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >1,000 Total Manufacturing 1.3* 2.1* 2.4 3.3 5.9 13.3 18.0 28.4 10.6 14.7 100.0* Retail trade 45.1 19.5 14.0 --- 8.4 --- 7.5 4.0 1.0 ---- 0.6 --- 100.0 Wholesale trade 12.6 23.0 22.0 -- 20.9 --- 8.9 6.8 3.6 ---- 2.2 ---- 100.0 Construction 0.6* 6.3* 10.6* 7.7 11.2 16.5 18.3 14.9 10.8 3.1 100.0 Mining Neg. 0.8 5.7 11.9 25.1 17.0 29.0 8.8 - 1.7 100.0 Road haulage 15.8 12.2 12.5 6.5 10.2 20.8 5.6 16.4 - - 100.0 Bus transport 0.6 2.3 2.4 3.0 4.5 16.5 25.6 31.4 13.6 - 100.0 Quarrying 0.1 1.4 8.0 9.5 16.2 32.5 27.7 4.6 - - 100.0 Housing developers 13.4 12.0 20.9 13.7 8.7 9.9 14.3 7.1 - - 100.0 Produce brokers /d 14.8 20.4 13.9 7.5* 11.6* 11.3* 8.7 8.0* 3.8* - 100.0 Finance companies 4.2 12.8 17.3 12.2 15.4 12.3 19.5 6.2 - - 100.0 Insurance companies 6.8 6.7 7.9 10.0 12.3 25.6 24.8 4.7 - 1.2 100.0 Subtotal 12.5 13.8 12.8 -- 15.7 --- 11.3 11.8 12.3 -- 9.8 ---- 100.0 Professions /e 11.9 21.9 22.1 11.8 10.8 10.8 4.8 5.2 0.6 - 100.0 Other services /f 7.7 7.0 9.1 2.5 19.3 4.4 12.5 9.5 --- 28.0 -- 100.0 Total (34 sectors) 12.4 13.7 12.8 -- 15.8 --- 11.3 11.6 12.2 --- 10.2 ---- 100.0 * Mission~s estimate. See Table 3.1 for footnotes. Source: Table 3.5. - 91 - Table 6.6: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF PRINCIPAL STATISTICS IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1973 Total Employment Size Group Sectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >.i,000 Total Number of Establishments Manufacturing /a 42.3 22.0 13.4 5.9 6.1 5.0 2.7 1.7 0.5 0.2 100.0 Retail trade /b 93.9 4.8 1.0 ---- 0.2 --- Neg. Neg. Neg. - - 100.0 (86.3) (10.7) (2.3) --- (0.6) -- (0.1) (Neg.) (Neg.) (-) (-) (100.0) Wholesale trade /b 53.4 29.2 12.4 ---- 3.9 --- 0.7 0.3 0.1 - - 100.0 (50.4) (31.0) (13.2) --- (4.1) -- (0.8) (0.3) (0.1) (-) (-) (100.0) Construction 16.2* 43.4* 16.7* 6.6 6.3 6.1 2.9 1.3 ---- 0.5 ---- 100.0 Mining 1.5 4.1 17.0 31.4 32.3 8.5 4.3 0.8 - - 100.0 Number of Persons Engaged Manufacturing /a 3.9 5.3 6.7 5.3 8.6 12.9 13.8 19.5 12.8 11.1 100.0 Retail trade /b 77.0 11.7 5.2 ---- 2.8 --- 1.3 1.0 0.9 - - 100.0 (62.2) (19.0) (8.6) --- (4.7) -- (2.2) (1.7) (1.5) (-) (-) (100.0) Wholesale trade /b 20.5 25.9 22.6 --- 15.3 --- 6.8 5.6 3.3 - - 100.0 (19.1) (26.3) (23.0) -- (15.6) -- (7.0) (5.7) (3.3) (-) (-) (100.0) Construction 2.4* 11.4* 9.4* 6.2 9.5 16.1 16.1 15.4 --- 13.5 ---- 100.0 Mining 0.1 0.9 7.3 20.5 (31.7) 14.3 16.7 8.3 - _ 100.0 Value Added Manufacturing /a 1.3 2.4 3.8 4.0 6.9 13.9 16.8 24.8 12.7 13.5 100.0 Retail trade /b 46.0* 17.1* 10.0* --- 12.5 --- 4.8 1.8 7.7 - - 100.0* (39.2) (19.2) (11.3) -- (14.1) -- (5.4) (2.0) (8.7) (-) (-) (100.0) Wholesale trade /b 10.2* 15.5* 19.6* --- 21.9 --- 17.2 9.1 6.4 - - 100.0* (10.0) (15.6) (19.7) -- (21.9) -- (17.3) (9.1) (6.4) (-) (-) (100.0) Construction 0.3* 4.1* 7.7* 5.8 9.8 18.4 17.0 20.7 --- 16.2 ---- 100.0* Mining 0.1 0.7 3.6 12.1 21.3 13.2 32.2 16.7 - - 100.0 Value of Fixed Assets Manufacturing /a 1.0 1.6 2.8 2.7 6.8 12.3 17.0 31.2 14.2 10.3 100.0 Retail trade lb 40.2* 15.2* 8.8* --- 11.0 --- 2.7 7.9 14.2 - - 100.0 (33.7) (16.8) (9.8) -- (12.2) -- (3.0) (8.7) (15.7) (-) (-) (100.0) Wholesale trade /b 9.4 16.9* 20.9* --- 21.5 --- 15.7 10.5 5.2 - - 100.0 (9.2) (16.9) (20.9) -- (21.5) -- (15.7) (10.5) (5.2) (-) (-) (100.0) Construction 0.3* 3.8* 9.5* 6.5 15.1 15.9 31.4 10.5 ---- 7.1 ---- 100.0* Mining 0.1 3.7 2.4 7.2 13.1 18.1 41.5 14.0 - - 100.0 Value of Total Assets Retail trade 46.4* 19.5* 9.9* ---- 9.7 --- 2.8 3.5 8.1 - - 100.0 Wholesale trade 9.9 18.9* 20.3* --- 21.1 --- 13.3 10.1 6.6 - - 100.0* Value of Gross Output Manufacturing /a 4.0 2.3 4.2 4.2 6.5 9.9 12.2 29.4 12.1 15.2 100.0 Retail trade lb 49.4 21.6 12.8 ---- 8.9 --- 3.7 1.2 2.4 - - 100.0 (42.5) (24.5) (14.6) -- (10.1) -- (4.2) (1.3) (2.7) (-) (-) (100.0) Wholesale trade /b 16.3 21.2 24.0 --- 20.9 --- 9.5 5.2 3.0 - - 100.0 (16.1) (21.2) (24.1) -- (21.0) -- (9.5) (5.2) (3.0) (-) (-) (100.0) Construction --- 6.5 ---- 9.4 6.8 10.1 17.7 17.3 18.0 ---- 14.3 --- 100.0 Mining 0.1 0.9 4.6 13.8 24.7 14.0 27.6 14.3 - - 100.0 * Mission's estimate. See Table 3.6 for footnotes and source. - 92 - Table 6.7.1: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF PRINCIPAL STATIST'ICS IN SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1978 TSEs < --SSEs - > MSEs LSEs Sectors <5 5-9 10-49 5-49 50-99 >,200 Total Number of Establishments Manufacturing 41.7* 21.7* 23.1 44.8* 10.0 3.5 100.0* Retail trade 93.5 4.9 1.4 6.4 0.2 Neg. 100.0 Wholesale trade 51.9 30.9 16.0 46.9 1.1 0.1 100.0 Construction 16.2* 48.9* 25.1* 74.1* 8.2 1.5 100.0 Mining 0.6 5.6 77.4 83.0 15.6 0.7 100.0 Road haulage 66.9 19.3 11.1 30.4 2.6 0.2 100.0 Housing developers 42.7 23.7 28.8 52.5 4.4 0.4 100.0 Produce brokers 72.C 19.1 7.2 26.3 1.4 0.3 100.0 Subtotal (12 sectors) /a 75.8 13.3 8.4 21,7 2.1 0.5 100.0 Total (34 sectors) /a 74.9 13.8 8.8 22.6 2.0 0.5 100.0 Number of Persons Engaged Manufacturing 3.4* 4.3* 15.5 19.8* 26.1 50.9 100.0* Retail trade 72.5 11.6 8.9 20.4 5.8 1.3 100.0 Wholesale trade 19.1 27.0 37.0 64.0 13.3 3.6 100.0 Construction 2.6* 14.5* 24.2* 38,.6* 32.2 26.6 100.0 Mining 0.1 1.0 55.3 56.3 36.6 7.0 100.0 Road haulage 22.9 15.2 28.8 44.0 24.7 8.4 100.0 Housing developers 7.3 12.5 42.1 54.6 31.4 6.8 100.0 Produce brokers 27.9 18.3 21.8 40.1 18.4 13.6 100.0 Subtotal (12 sectors) /a 19.0 10.2 20.8 31.0 22.5 27.6 100.0 Total (34 sectors) /a 19.0 10.6 21.8 32.4 21.7 26.9 100.0 Value Added Manufacturing 1.2* 2.1* 10.8 12.9* 31.1 54.7 100.0* Retail trade 44.9* 15.8* 19.3* 35.1* 17.3 3.0 100.0 Wholesale trade 9.8* 17.4* 35.8* 53.2* 28.8 8.2 100.0* Construction 0.7* 6.2* 27.8* 34.0* 35.5 29.8 100.0* Mining Neg. 0.5 36.1 36.6 50.5 12.9 100.0 Road haulage 16.8. 12.0 27.3 39.3 24.0 19.8 100.0 Housing developers 13.3 (-)3.8 47.8 44.0 31.7 10.9 100.0 Produce brokers 4.8 5.8 29.4* 35.1* 37.0* 23.1 100.0 Subtotal (12 sectors) /a 6.7 7.2 22.2 29.4 32.3 31.7 100.0 Total (34 sectors) /a 6.7 7.2 22.2 29.4 32.3 31.7 100.0 Value of Fixed Assets Manufacturing 1.4* 1.3* 9.7* 11.0* 28.0 59.5 100.0* Retail trade 39.5* 19.7* 19.4* 39.1* 15.3 6.0 100.0* Wholesale trade 8.9* 18.8* 36.5* 55.3* 23.7 12.0 100.0* Construction 0.6* 5.9* 37.9* 43.8* 30.5 25.1 100.0* Mining 0.1 1.4 37.7 39.1 49.8 11.0 100.0 Road haulage 21.4 14.5 24.2 38.7 18.2 21.7 100.0 Housing developers 22.C 15.1 41.1 56.1 18.3 3.4 100.0 Produce brokers 10.9 11.8 32.2 44.0 23.1 22.2 100.0 Subtotal (12 sectors) /a 6.1 6.0 19.5 25.5 27.7 40.6 100.0 Total (34 sectors) /a 6.0 5.9 18.9 24.8 26.4 42.8 100.0 Total Assets (Fixed Assets and Stocks) Retail trade 37.8* 22.2* 21.2* 43.4* 14.3 4.6 100.0* Wholesale trade 10.5* 20.5* 36.5* 57.0* 23.2 9.2 100.0* * Mission's estimate. /a Includes bus transport, quarrying, and finance and insurance companies, besides the above-mentioned eight sectors. Table 6.7.2: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF PRINCIPAL STATISTICS IN SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1973 TSEs SSEs MSEs LSEs TSEs SSEs MSEs LSEs Sectors <5 5-9 10-49 50-199 >200 Total <5 5-9 10-49 50-199 >.200 Total Number of Establishments Number of Persons Engaged Manufacturing 42.3 22.0 25.4 7.8 2.4 100.0 3.9 5.3 20.7 26.7 43.4 100.0 Retail trade 93.9 4.8 1.3 0.1 - 100.0 77.0 11.7 8.0 2.4 0.9 100.0 Wholesale trade 53.4 29.2 16.3 1.0 0.1 100.0 20.5 25.9 37.9 12.4 3.3 100.0 Construction 16.2 43.4 29.6 9.1 1.8 100.0 2.4 11.4 25.2 32.2 28.9 100.0 Mining 1.5 4.1 80.8 12.8 0.8 100.0 0.1 0.9 59.6 31.1 8.3 100.0 Value Added Value of Fixed Assets Manufacturing 1.3 2.4 14.7 30.7 51.0 100.0 1.0 1.6 12.3 29.4 55.8 100.0 Retail trade /a 46.0 17.1 22.6 6.5 7.7 100.0 40.2 15.2 19.9 10.6 14.2 100.0 (46.4) (19.5) (19.6) (6.3) (8.1) (100.0) Wholesale trade /a 10.2 15.5 41.5 26.3 6.4 100.0 9.4 16.9 42.3 26.2 5.2 100.0 (9.9) (18.9) (41.4) (23.3) (6.6) (100.0) Construction 0.3 4.1 23.3 35.4 36.9 100.0 0.3 3.8 31.2 47.3 17.5 100.0 Mining 0.1 0.7 37.0 54.4 16.7 100.0 0.1 3.7 22.7 59.6 14.0 100.0 /a Lower row refers to total assets (fixed assets and stocks). Source: Table 6.6. Table 6.8: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF PRINCIPAL STATISTICS IN SELECTED SECTORS BY FIXED ASSETS GROUP, 1978 Fixed Assets Size Group (M$0 00) 10 to 20 to 50 to 100 to 200 to 500 to 1,000 to 5,000 to Sectors <10 <20 <50 <100 <200 <500 <1,000 <5,000 <10,000 >10,000 Total Number of Establishments Manufacturing /a 8.5 6.6 15.2 14.2 13.4 14.8 8.9 13.2 2.9 2.2 100.0 Retail trade /b 81.4 8.6 5.7 2.4 1.1 0.6 0.1 - - - 100.0 Wholesale trade /b 45.2 16.2 19.0 9.0 5.2 3.5 1.0 0.7 0.1 - 100.0 Construction /c 30.1 13.9 18.8 12.3 11.8 7.9 3.0 1.6 0.4 0.1 100.0 Mining 10.5 6.1 15.5 19.7 21.6 15.6 4.5 4.8 1.6 0.2 100.0 Number of Persons Engaged Manufacturing /a 2.3 1.4 4.0 4.7 5.8 9.0 9.3 27.2 15.6 20.7 100.0 Retail trade /b 64.1 9.5 9.0 5.1 3.5 5.9 1.3 0.9 0.1 0.6 100.0 Wholesale trade /b 24.3 12.0 18.7 13.1 9.1 9.3 3.8 6.2 1.7 1.7 100.0 Construction /c 14.7 6.9 14.1 12.0 14.5 16.5 9.6 7.7 3.0 1.0 100.0 Mining 5.4 3.2 9.9 15.3 18.4 18.6 7.2 12.5 9.5 ---- 100.0 Value Added Manufacturing /a 1.4 0.6 1.6 2.4 3.2 6.3 7.4 27.9 18.0 31.2 100.0 Retail trade /b 46.8 9.3 12.1 9.1 4.6 8.3 2.4 3.9 0.3 3.3 100.0 Wholesale trade /b 16.1 6.4 11.4 10.2 9.6 8.6 4.9 14.5 8.7 9.6 100.0 Construction /c 11.6 4.4 10.9 9.3 14.8 16.1 11.6 15.0 4.5 1.8 100.0 Mining 3.5 1.2 4.9 8.4 10.7 14.1 10.8 24.4 --- 22.1 --- 100.0 Value of Fixed Assets Manufacturing /a - 0.1 0.4 0.9 1.7 4.1 5.6 26.9 17.0 43.3 100.0 Retail trade /b 14.4 8.9 13.5 12.9 11.8 14.7 6.9 6.2 2.2 8.5 100.0 ,d 36.5 11.1 11.7 10.0 7.5 10.8 3.7 3-5 0.7 4.4 100.0 Wholesale trade /b 3.4 3.3 8.3 8.4 9.0 14.6 9.3 18.0 10.4 15.3 100.0 /d 12.7 7.3 13.2 10.6 10.8 12.4 6.2 13.1 5.5 8.2 100.0 Construction /c 0.5 1.3 4.0 5.9 10.7 16.7 13.4 20.1 18.3 9.0 100.0 Mining 0.1 0.3 1.6 4.2 9.4 13.5 8.5 27.5 ---- 35.0 …100.0 Value of Gross Output Manufacturing /a 1.7 0.5 1.7 2.2 3.2 6.1 7.2 26.2 17.9 33.4 100.0 Retail trade /b 49.0 12.0 13.1 8.5 4.9 6.9 9.0 2.3 0.2 1.1 100.0 Wholesale trade /b 18.5 9.1 15.2 12.6 10.2 9.4 7.4 8.3 3.9 5.3 100.0 Construction /c 12.0 5.2 12.2 10.9 15.1 15.9 10.3 12.4 4.8 1.3 100.0 Mining 3.6 1.3 5.9 10.0 12.9 16.2 10.9 21.3 --- 17.8 ---- 100.0 /a Figures refer to the ASMI 1978 coverage as applied to the CMI 1973. /b Refers to 1974. Figures in ( ) refer only to the "establishments with accounts." 7T Figures in ( ) refer only to the establishments with output above M$100,000 in 1973. 75 Value of total assets (fixed assets and stocks) at the end of 1974. Source: Table 3.8. - 95 - Table 6.9: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF PRINCIPAL STATISTICS IN SELECTED SECTORS BY FIXED ASSETS SIZE GROUP, 1973 Fixed Assets Size Group (M$'000) 10 to 20 to 50 to 100 to 200 to 500 to 1,000 to 5,000 to Sectors <10 <20 <50 <100 <200 <500 <1,000 <5,000 <10,000 >,10,000 Total Number of Establishments Manufacturing 56.3 12.3 11.2 5.6 4.4 4.0 2.4 2.9 0.5 0.3 100.0 Retail trade 88.7 5.9 3.9 0.9 0.4 0.2 0.1 Neg. Neg. Neg. 100.0 Wholesale trade 57.4 16.8 14.1 6.0 2.8 1.8 0.6 0.5 Neg. Neg. 100.0 Construction 30.7 17.5 21.1 13.8 8.5 6.2 1.5 ---------- 0.7 -------- 100.0 Mining 22.9 10.0 23.8 21.7 11.3 4.8 1.5 3.3 ---- 0.6 ---- 100.0 Number of Persons Engaged Manufacturing 10.9 5.1 7.3 5.8 6.4 10.4 11.0 28.6 7.7 6.9 100.0 Retail trade 74.3 9.0 7.6 3.0 2.1 1.7 0.6 1.1 0.3 0.2 100.0 Wholesale trade 33.5 14.4 17.8 10.7 7.6 6.6 3.6 5.0 0.2 0.5 100.0 Construction 15.2 8.3 15.8 15.9 13.9 20.9 7.1 ---------- 2.9 -------- 100.0 Mining 15.5 6.3 17.7 19.5 10.9 7.2 4.0 16.3 ---- 2.6 --- 100.0 Value Added Manufacturing 3.7 2.0 3.4 3.6 5.5 9.0 10.5 31.4 12.8 18.0 100.0 Retail trade 51.7 10.8 11.7 6.0 4.3 3.0 2.4 7.6 2.0 0.5 100.0 Wholesale trade 20.3 8.2 12.6 12.6 9.7 9.8 6.9 10.3 4.5 5.0 100.0 Construction 12.8 6.7 14.0 13.5 13.8 24.3 5.7 ---------- 9.0 -------- 100.0 Mining 7.8 3.8 9.5 13.6 8.5 9.3 6.0 35.8 ---- 5.8 ---- 100.0 Value of Fixed Assets Manufacturing 0.7 0.8 1.7 1.9 3.1 6.1 8.1 30.6 15.9 31.0 100.0 Retail trade/a 24.7 10.5 15.3 8.1 7.3 7.6 4.7 8.7 6.3 6.7 100.0 (46.0) (11.4) (13.2) (6.5) (5.2) (4.2) (2.4) (6.4) (2.8) (1.8) (100.0) Wholesale trade/a 6.9 5.6 9.1 9.5 9.3 12.1 9.1 20.5 5.4 12.4 100.0 (19.4) (10.3) (12.9) (10.1) (9.4) (9.8) (7.3) (14.9) (2.0) (4.0) (100.0) Construction 1.5 2.9 7.9 11.5 13.6 21.0 12.2 --------- 29.4 ------- 100.0 Mining 0.4 0.7 3.9 7.9 7.7 6.6 4.9 42.1 --- 25.7 ---- 100.0 Value of Gross Output Manufacturing 4.0 2.3 4.2 4.2 6.5 9.9 12.2 29.4 12.1 15.2 100.0 Retail trade 58.6 11.8 13.1 5.3 3.4 2.3 2.2 2.5 0.7 0.2 100.0 Wholesale trade 23.5 12.1 18.8 12.8 8.4 7.3 7.8 5.7 1.7 1.7 100.0 Construction 13.9 7.4 15.3 14.1 14.7 22.6 5.9 ---------- 6.1 -------- 100.0 Mining 8.4 4.0 11.4 15.5 10.0 9.4 5.4 30.7 ---- 5.2 ---- 100.0 /a Lower row refers to total assets (fixed assets and stocks). Source: Table 3.9. Table 6.10.1: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF PRINCIPAL STATISTICS IN SELECTED SECTORS BY FIXED ASSETS SIZE SEGMENTS, 1978 Fixed Assets Size Segment (M$'000) Fixed Assets Size Segment (M$'000) <10 10-199 200-999 >1,000 <10 10-199 200-999 >.1,000 Sectors TSEs SSEs MSEs LSEs Total TSEs SSEs MSEs LSEs Total Number of Establishments Value Added Manufacturing 8.5 49.4 23.8 18.4 100.0 1.4 7.8 13.7 77.2 100.0 Retail trade 81.4 17.8 0.7 0.1 100.0 46.8 35.1 10.7 7.4 100.0 Wholesale trade 45.2 49.5 4.5 0.8 100.0 16.1 37.5 13.5 32.9 100.0 Construction 30.1 56.9 10.9 2.2 100.0 11.6 39.4 27.7 21.3 100.0 Mining 10.5 62.9 20.1 6.5 100.0 3.5 25.1 24.9 46.5 100.0 Road haulage 30.2 65.4 3.9 0.4 100.0 7.3 46.9 23.6 22.1 100.0 Housing developers 25.1 38.0 17.9 19.0 100.0 13.6 44.0 19.7 22.7 100.0 Produce brokers 74.6 22.6 2.1 0.7 100.0 16.2 21.8 35.3 26.7 100.0 /a Total (12 sectors) 60.2 32.8 4.8 2.2 100.0 10.7 21.6 17.1 50.5 100.0 Number of Persons Engaged Value of Fixed Assets Manufacturing 2.3 15.9 18.3 63.5 100.0 Neg. 3.1 9.7 87.2 100.0 Retail trade /b 64.1 27.2 7.2 1.6 100.0 14.4 47.1 21.6 16.9 100.0 (36.4) (40.4) (14.5) (8.6) (100.0) Wholesale trade /b 24.3 52.9 13.2 9.6 100.0 3.4 29.0 23.9 43.7 100.0 (12.7) (41.9) (18.6) (26.8) (100.0) Construction 14.7 47.5 26.1 11.7 100.0 0.5 21.9 30.1 47.5 100.0 Mining 5.4 46.8 25.8 22.0 100.0 0.1 15.4 22.0 62.5 100.0 Road haulage 12.1 54.1 22.5 11.3 100.0 3.1 43.5 26.7 26.7 100.0 Housing developers 7.7 37.4 21.9 33.0 100.0 0.1 2.5 7.6 89.9 100.0 Produce brokers 39.7 29.4 16.9 14.0 100.0 3.6 22.4 23.2 51.0 100.0 /a Total (12 sectors) 17.0 29.8 18.3 34.9 100.0 1.3 10.8 14.5 73.4 100.0 /a Includes bus transport, quarrying, and finance and insurance companies, besides the above-mentioned eight sectors. /b Figures in ( ) refer to total assets (fixed assets and stocks) as on December 31, 1978. Source: Table 3.8. - 97 - Table 7.1: PENINSULAR MALAYSIA: AVERAGE ANNUAL GROWTH RATES OF SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1973/74-1978 Total Employment Size Group Sectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >1,000 Total Number of Establishments Manufacturing /a n.a- n.a. (-)7.3* 3.8 2.4 5.7 5.3 7.1 7.4 14.3 3.3* Retail trade /b 0.7 1.4 4.2 --- 3.8 --- 24.0 29.0 --------- 7.5 ------ 0.8 (-0.7) (1.0) (4.4) (-0.5) Wholesale trade /b 4.7 7.0 4.8 --- 6.2 --- 6.6 8.9 --------- 3.0 ------- 5.5 (4.0) (7.1) (4.8) (5.2) Construction /c 11.0* 13.6* 5.5* 9.5 9.8 8.8 8.8 8.5 ---- 4.1 --- 10.9 (75.0) (33.0) (18.7) (14.0) Mining /d (-)22.0 4.1 (-)1.6 (-)3.8 (-)3.2 2.8 (-)0.3 ------ (-)4.1 (-)2.2 Number of Persons Engaged Manufacturing /a n.a. n.a. (-)5.8* 3.7 2.3 5.9 5.8 6.4 7.1 17.4 7.6* Retail trade lb 0.1 1.3 4.5 --- 3.6 --- 26.0 29.0 -------- 11.3 ------- 1.6 (-0.6) (1.0) (4.7) (2.1) Wholesale trade /b 3.9 6.8 4.3 --- 6.3 --- 6.2 9.1 --------- 8.7 ------- 5.7 (3.5) (6.8) (4.4) (5.7) Construction /c 10.0* 14.0* 4.8* 9.4 9.3 9.1 8.2 7.3 ---- 6.3 --- 8.6 --- (31.0) --- (17.7) (9.0) Mining /d (-)23.0 0.2 (-)3.2 (-)4.1 (-)3.1 3.3 (-)0.4 ------ (-)5.5 ------- (-)1.9 Value Added Manufacturing /a n.a. n.a. 7.9* 13.6 12.2 18.5 19.3 20.0 19.3 21.0 19.0* Retail trade lb 11.1* 9.6* 12.2* --- 3.0 --- 37.0 55.0 …---- (-)13.1 ------… 11.9* (10.2) (9.6) (12.2) (11.6) Wholesale trade /b 10.7* 15.3* 6.5* --- 9.3 --- 7.9 31.0 -------- 19.2 ------- 12.0* (10.5) (15.3) (6.5) (12.0) Construction /c 49.0* 34.0* 30.0* 29.0 27.0 20.0 28.0 16.7 --- 21.0 --- 24.0* __ (50.0) --- (33.0) (24.0) Mining /d (-)32.0 3.7 19.2 6.5 11.1 15.2 13.0 5.6 ------- 11.2 Value of Fixed Assets Manufacturing /a n.a. n.a. 10.0* 18.8 11.4 17.9 16.7 14.6 22.0 29.0 18.3* Retail trade /b 14.1 23.0 24.0 --- 5.1 --- 44.0 18.3 ------ (-)7.7 ------- 15.1 /e 10.9 12.9 16.7 --- 4.9 --- 40.0 28.0 ----- (-)5.9 ------- 12.5 Wholesale trade /b 17.4 22.0 16.0 -- 13.9 --- 10.7 23.0 -------- 47.0 ------- 19.2 7/e 15.7 15.6 12.1 --- 7.2 --- 8.4 18.3 -------- 23.0 ------- 13.2 Construction /c 55.0* 40.0* 31.0* 34.0 34.0 26.0 11.8 29.0 --- 47.0 --- 28.0* - (50.0) --- (34.0) Mining /d 5.9 (-)11.0 22.0 15.2 23.0 8.6 3.2 -------- 3.7 ------- 8.8 Value of Gross Output Manufacturing /a n.a. n.a. 7.8* 14.3 17.5 27.0 30.0 19.1 16.8 19.2 20.0* Retail trade /b 9.7 9.3 14.7 -- 10.6 --- 34.0 50.0 --------- 1.8 ------ 12.2 (8.9) (9.3) (14.7) (12.2) Wholesale trade /b 3.2 12.3 7.6 -- 10.0 --- 8.4 18.0 -------- 30.0 ------- 10.0 (2.7) (12.3) (7.6) (9.9) Construction /c ---- 20.0 ---- 22.0 22.0 21.0 17.1 20.0 14.3 --- 18.1 --- 18.8 --- (41.0) --- (26.0) (19.4) Mining /d (-)25.0 10.5 18.5 10.2 13.8 17.9 14.5 -------- 6.6 13.4 n.a. = Not available. * Mission's estimate. /a The CMI 1973 data have been adjusted for the difference in employment coverage with the ASMI 1978. The growth rates of size class 10-19 are likely to be underestimates. Also see footnote /a in Annex Table 2.3. /b The figures in ( ) relate to "establishments with account" only, and the growth rates relate to 1974-78. /c The figures in ( ) relate to "establishments with annual output of above M$100,000" only. /d The 1973 and 1978 data might not be reasonably comparable. /e The figures refer to total assets (fixed assets and stocks). Source: Tables 3.1 to 3.6. - 98 - Table 7.2.1: PENINSULAR MALAYSIA: AVERAGE ANNUAL GROWTH RATES OF SELECTED SECTORS BY EMPLOYMENT SEGMENTS, 1973/74-1978 TSEs <------- SSEs -------> MSEs LSEs Sectors <5 5-9 10-49 5-49 50-199 )200 Total Number of Establishment Manufacturing /a n.a. n.a. n.a. 2.0* 5.5 7.13 3.3*; Retail trade 0.7 1.4 4.1 2.0 26.0 7.5 0.8 Wholesale trade 4.7 7.0 5.1 6.4 7.3 2.0 5.5 Construction 11.0* 13.6 (-)1.1* 11.3* 8.8 7.4 10.9 Mining (-)30.0 4.1 (-)3.1 (-)2.7 1.8 (-)4.:L (-)2.2 Total (5 sectors) 1.1 3.9 6.7 7.2 1.7 Number of Persons Engaged Manufacturing /a n.a. n.a. n.a. 4.1 5.9 9.8 7.6*t Retail trade 0.1 1.3 4.2 2.5 27.0 11.4 1.6 Wholesale trade 3.9 6.8 5.2 5.8 7.5 8.7 5.7 Construction 10.0* 14.0* 7.7* 9.8* 8.6 6.8 8.6 Mining (-)23.0 0.2 (-)3.5 (-)3.4. 1.4 (-)5.5 (-)1.9 Total (5 sectors) 0.9 3.3 5.6 9.0 4.9 Value Added Manufacturing /a n.a. n.a. n.a. 14.4* 18.9 20.0 19.0* Retail trade 11.1* 9.6* 7.4* 8.4* 42.0 (-)13.L 11.8* Wholesale trade 10.7* 15.3* 8.0* 10.1* 14.6 19.2 12.0* Construction 49.0* 34.0* 29.0* 30.0* 24.0 18.8 24.0* Mining (-)32.0 3.7 10.7 10.5 13.6 5.6 11.2 Total (5 sectors) 11.4 11.7 18.3 18.7 15.7 Value of Fixed Assets Manufacturing /a n.a. n.a. n.a. 13.8* 17.2 19.9 18.3* Retail trade /b 14.9* 23.0* 14.7* 18.5* 27.0 (-)7.7 15.3* (3.7*) (12.8*) (11.4*) (12.9*) (34.0) [(-)5.9)] (9.2*A) Wholesale trade /b 17.7 22.0* 14.9* 17.1* 16.3 47.0 19.2 (15.0*) (15.5*) (9.7*) (11.6*) (13.0) (23.0) (13.2*) Construction 55.0* 40.0* 33.0* 34.0* 17.2 37.0 28.0 Mining 5.9 (-)11.0 20.0 17.7 5.0 3.7 8.8 Total (5 sectors) 16.7 17.0 15.7 20.1] 17.9 n.a. = Not available. * Mission's estimate. /a The CMI 1973 data have been adjusted for the difference in employment cover- age with ASMI 1978. The growth rates obtained on the establishments with 49 or less persons engaged are assumed to apply for the SSE segment. Also see footnote /a in Annex Table 2.3. /b Figures in ( ) in the "Value of Fixed Assets" block refer to total assets (fixed assets and stocks). Source: Tables 3.1 to 3.6. Table 7.3: PENINSULAR MALAYSIA: AVERAGE ANNUAL GROWTH RATES OF SELECTED SECTORS BY FIXED ASSETS GROUP, 1973/74-1978 Fixed Assets Size Group (M$'000) 10 to 20 to 50 to 100 to 200 to 500 to 1,000 to 5,000 to Sectors <10 <20 <50 <100 <200 <500 <1,000 <5,000 <10,000 ,10,000 Total Number of Establishments Manufacturing /a n.a. n.a. (-)0.7 0.6 4.2 8.6 9.0 13.1 18.8 25.0 3.3 Retail trade /b (-)2.6 9.5 9.2 28.0 32.0 35.0 25.0 15.0 (-)19.0 19.0 0.5 Wholesale trade /b (-)0.9 4.3 13.4 16.3 23.0 25.0 22.0 16.3 41.0 3.9 5.2 Construction /c 13.5 8.9 11.4 11.4 22.0 19.8 30.0 --------- 44.0 ---- 14.0 Mining /d (-)9.4(-)12.8 (-)11.4(-)4.3 11.4 24.0 23.0 5.3 ---- 19.6 -- -2.2 Number of Persons Engaged Manufacturing /a n.a. n.a. (-)7.6 0.6 2.6 2.0 1.5 3.8 21.0 31.0 7.6 Retail trade /b (-)1.6 3.4 6.4 16.2 16.0 39.0 22.0 (-)3.6 (-)25.0 35.0 2.1 Wholesale trade /b (-)2.4 0.9 7.0 11.2 10.8 15.1 7.6 11.6 75.0 41.0 5.7 Construction /c 8.3 5.0 6.7 3.0 10.1 4.1 15.9 --------- 44.0 -------- 9.0 Mining /d (-)26.0(-)16.7 (-)14.4(-)7.1 9.1 18.8 10.1 (-)7.6 27.0 --- (-)1.9 Value Added Manufacturing /a n.a. n.a. 1.1 8.5 6.1 9.6 10.0 15.2 26.0 32.0 19.0 Retail trade /b 8.9 7.4 12.7 24.0 13.6 44.0 11.7 (-)6.1 (-)49.0 80.0 11.6 Wholesale trade /b 5.8 5.1 9.3 6.2 11.5 8.4 2.7 22.0 32.0 32.0 12.0 Construction /c 21.0 13.9 17.7 15.0 25.0 14.0 43.0 -------- 47.0 … …24.0 Mining /d (-)5.6(-)14.0 (-)2.8 0.9 16.5 21.0 25.0 3.0 ---- 46.0 --- 11.2 Value of Fixed Assets Manufacturing /a n.a. n.a.(-)11.1 1.0 4.4 8.7 9.2 14.7 19.3 26.0 n.a. Retail trade /b 0.6 10.6 11.5 29.0 30.0 36.0 26.0 5.5 13.0 22.0 15.1 /e 6.1 11.7 9.2 25.0 24.0 42.0 25.0 (-)3.3 (-)23.0 39.0 12.5 Wholesale trade /b (-)0.1 4.1 16.2 5.4 18.5 25.0 19.8 15.5 40.0 26.0 19.2 7_ 1.8 4.2 13.9 14.8 17.0 20.0 8.4 9.7 46.0 36.0 13.2 Construction /c 2.3 9.1 11.4 11.7 22.0 22.0 30.0 -------- 41.0 28.0 Mining /d (-)17.1(-)11.8 (-)10.6(-)4.4 13.3 25.0 21.0 (-)0.1 ----- 15.7 --- 8.8 Value of Gross Output Manufacturing /a n.a. n.a. (-)0.8 4.8 3.7 8.2 7.4 16.5 21.0 40.0 20.0 Retail trade /b 7.3 12.7 12.2 27.0 23.0 48.0 10.8 9.6 (-)23.0 (-)60.0 12.2 Wholesale trade /b 3.6 2.5 4.3 9.7 15.2 17.0 8.4 21.0 36.0 42.0 9.9 Construction /c 16.0 11.3 14.1 13.3 20.0 11.3 34.0 --------- 49.0 -------- 19.4 Mining /d (-)4.2(-)10.3 (-)0.6 3.9 19.5 27.0 30.0 5.4 ----- 45.0 ---- 13.4 n.a. = Not available. /a The CMI 1973 data have been adjusted for the difference in employment coverage with the ASMI 1978. /b Relates to "establishments with accounts" only, and the growth rates relate to 1974-78. 74 Relates to "establishments with annual output of above M$100,000" only. 7d The 1973 and 1978 data might not be reasonably comparable. Source: Tables 3.8 and 3.9. Table 8.1.1: PENINSULAR MALAYSIA: NUMBER OF ESTABLISHMENTS IN MANUFACTURING SECTOR BY EMPLOYMENT SIZE SEGMENTS AND STATES, 1973 Number of Establishments Percentages in Totals TSEs SSEs MSEs LSEs TSEs SSEs MSEs LSEs States <5 5-9 10-49 50-199 >200 Total <5 5-9 10-49 50-199 )2O0 Total Johore 643 286 358 127 44 1,458 13.7 11.7 12.7 14.8 16.4 13.2 Kedah 473 147 151 22 4 797 10.1 6.0 5.4 2.6 1.5 7.2 Kelantan 199 74 106 40 5 424 4.2 3.0 3.8 4.7 1.9 3.8 Malacca 192 126 84 18 9 429 4.1 5.2 3.0 2.1 3.4 3.9 Negeri Sembilarn 193 107 96 33 8 437 4.1 4.4 3.4 3.8 3.0 4.0 Pahang 263 88 92 57 11 511 5.6 3.6 3.3 6.6 4.1 4.6 Pulau Penang 723 365 379 89 49 1,605 15.4 15.0 13.5 10.4 18.3 14.5 Perak 814 482 502 112 34 1,944 17.4 19.8 17.8 13.0 12.7 17.6 Perlis 49 25 2 1 1 86 1.0 1.0 0.1 0.1 0.4 0.8 Selangor 910 708 990 335 100 3,043 19.4 29.1 35.2 39.0 37.3 27.5 0 Trengganu 224 28 46 25 3 326 4.8 1.1 1.6 2.9 1.1 2.9 Peninsular Malaysia 4,683 2,436 2,814 859 268 11,060 100.0 100.0 100.0 100.0 100.0 100.0 Source: Census of Manufacturing Industries, Peninsular Malaysia, 1973 (Volume I), op. cit. Table 8.2.1: PENINSULAR MALAYSIA: NUMBER OF PERSONS ENGAGED IN MANUFACTURING SECTOR BY EMPLOYMENT SIZE SEGMENTS AND STATES, 1973 Number of Paid Full-Time Workers Percentages in Totals TSEs SSEs MSEs LSEs TSEs SSEs MSEs LSEs States <5 5-9 10-49 50-199 >200 Total <5 5-9 10-49 50-199 )200 Total Johore 455 1,042 6,705 11,747 20,495 40,444 12.8 11.5 12.7 15.6 16.0 15.1 Kedah 386 502 2,907 2,098 1,338 7,231 10.8 5.6 5.5 2.8 1.0 2.7 Kelantan 220 320 1,797 2,337 1,645 6,319 6.2 3.5 3.4 3.1 1.3 2.4 Malacca 116 443 1,350 1,688 5,656 9,253 3.3 4.9 2.6 2.2 4.4 3.5 Negeri Sembilan 109 378 1,741 2,645 2,401 7,274 3.1 4.2 3.3 3.5 1.9 2.7 Pahang 131 321 1,841 5,004 4,025 11,322 3.7 3.6 3.5 6.6 3.2 4.2 Pulau Penang 513 1,281 6,541 8,102 30,082 46,519 14.4 14.2 12.4 10.8 23.6 17.3 Perak 640 1,663 9,309 9,449 16,163 37,224 18.0 18.4 17.7 12.6 12.7 13.9 Perlis 73 98 190 86 770 1,217 2.1 1.1 0.4 0.1 0.6 0.5 1 Selangor 824 2,891 19,503 30,365 43,959 95,542 23.2 32.0 37.1 40.3 34.4 35.6 Trengganu 91 103 709 1,745 1,169 3,817 2.6 1.1 1.3 2.3 0.9 1.4 H Peninsular Malaysia 3,558 9,042 52,593 75,266 127,703 268,162 100.0 100.0 100.0 100.0 100.0 100.0 Source: See Table 8.1.1 Table 8.3.1: PENINSULAR MALAYSIA: VALUE ADDED OF MANUFACTURING SECTOR BY EMPLOYMENT SIZE SEGMENTS AND STATES, 1973 Value Added (M$ million) Percent in Totals TSEs SSEs MSEs LSEs TSEs SSEs MSEs LSEs States <5 5-9 10-49 50-199 >200 Total (5 5-9 10-49 50-199 >200 Total Johore 4.1 6.1 47.6 117.0 110.0 284.7 13.9 11.0 14.0 16.4 9.3 12.2 Kedah 3.4 3.3 22.9 8.2 9.7 47.5 11.6 5.9 6.7 1.1 0.8 2.0 0 0 1 ,,,.I r. I WV? I I ~ . I 0 1 C (N I 0 Kelantan 1.2 4.0 0.i i0,5 6U.1 27. 4.1 7.2 1.0 i.5 0 1.2 Malacca 1.0 2.3 4.9 13.6 12.8 34.5 3.4 4.1 1.4 1.9 1.1 1.5 Negeri Sembilan 1.3 1.6 9.6 55.8 36.5 104.8 4.4 2.9 2.8 7.8 3.1 4.5 Pahang 1.2 1.8 12.5 47.1 27.7 90.2 4.1 3.2 3.7 6.6 2.3 3.9 Pulau Penang 4.1 7.8 41.2 51.5 200.8 305.4 13.9 14.0 12.1 7.2 16.9 13.1 Perak 4.5 8.1 47.1 61.9 124.4 245.9 15.3 14.6 13.8 8.7 10.5 10.6 Perlis 0.5 0.5 2.2 0.2 1.1 4.5 1.7 0.9 0.6 Neg. 0.1 0.2 Selangor 7.5 19.8 143.8 338.7 651.8 1,161.6 25.5 35.6 42.2 47.4 55.0 49.9 Trengganu 0.6 0.5 3.0 10.8 5.0 19.9 2.0 0.9 0.9 1.5 0.4 0.9 Peninsular Malaysia 29.4 55.6 340.9 715.2 1,185.8 2,326.9 100.0 100.0 100.0 100.0 100.0 100.0 Source: See Table 8.1.1. Table 8.4.1: PENINSULAR MALAYSIA: ECONOMIC SIGNIFICANCE AND RELATIVE EFFICIENCY OF SELECTED MANUFACTURING SSIs, 1978 Capital-labor Labor pro- Capital pro- labor Gross return Weights Relative % of Total ratio /d ductivity e ductivity /f earnis/ to capitl /h /i efficiency MIC Value alployment Value added SSIs/ SSI"ISSSI/ SSIs/ (ii index /J codes Manufactured products added SSIs MLIs SSIs MLIs SSIs MLIs SSIs MLIs SSIs MLIs SSIs MLIs SSIs MLIs LE VA-LE A B (M$ m) ($ 000) (Z) ($000) (Z) (no.) (Z) ($'000) (U ( (Z) VA VA - (Z) - 31 Food, Beverages & Tobacco Products 31110/a Meat (preserved/processed) 9.7 22.6 77.4 6.7 93.3 10.1 30 9.3 25 0.9 82 3.2 76 60 61 13 87 75 63 31121 I Ice cream 10.8 28.8 71.2 10.2 89.8 9.2 30 6.1 28 0.7 93 2.0 37 45 83 26 74 76 71 311407i Fish crustaceans (preserved/ processed) 27.3 7.9 92.1 12.5 87.5 9.3 163 10.1 167 1.1 103 2.4 128 83 114 31 69 123 118 31151/c Coconut oil 13.9 80.0 17.5 85.3 13.9 10.1 44 13.9 134 1.4 303 2.3 62 115 393 19 81 247 329 311537w Palm kernel oil 21.2 61.5 38.5 70.9 29.1 19.8 77 20.0 153 1.0 198 2.7 44 87 321 23 77 188 257 311627T Rice (large mills) 29.4 81.0 17.6 91.6 6.2 16.0 290 12.6 321 0.8 110 3.0 126 60 213 26 74 164 191 31164/a Sago & tapioca 7.2 70.9 29.1 67.3 32.7 7.9 44 6.4 84 0.8 192 2.6 103 47 170 39 61 150 144 311717i Biscuits 20.1 18.4 81.6 13.5 86.5 3.1 50 4.0 69 1.3 138 1.7 64 75 146 45 55 107 109 311727b Bakery products 7.4 85.2 14.8 78.4 21.6 3.7 76 3.3 63 0.9 83 1.8 85 42 63 51 49 73 74 311907i Cocoa, chocolate & confectionery 34.1 11.3 88.7 3.9 96.1 3.2 18 4.3 32 1.3 177 1.9 61 75 128 24 76 143 112 312147;i Meehoone, noodles & related 14.0 42.2 57.8 19.4 80.6 4.0 50 3.6 33 0.9 67 1.9 75 41 41 29 71 57 51 products 31220/a Animal feeds (prepared) 39.3 32.9 67.1 21.1 78.9 15.4 69 12.4 55 0.8 80 3.3 69 59 74 23 77 74 73 3131O77 Distilled, rectified & blended spirits 7.9 46.0 54.0 15.9 84.1 2.7 19 10.5 22 4.0 120 2.2 59 311 103 10 90 110 99 31340/a Soft drinks & carbonated beverages 49.5 16.4 83.6 6.8 93.2 10.6 71 6.9 37 0.7 52 2.2 54 44 46 23 77 49 48 31400/a Tobacco products 147.5 17.0 83.0 1.8 98.2 1.7 10 2.5 9 1.5 91 1.2 23 79 60 18 82 76 53 32 & 33 Textiles, Wood & Related Products 32127/c Yarns & finished fabric 132.9 1.2 98.7 0.5 99.5 3.5 19 4.7 42 1.3 221 1.6 52 87 202 28 72 171 160 321147w Batik 6.0 47.4 51.1 29.1 70.6 1.9 72 3.2 44 1.7 62 1.7 113 82 37 30 70 57 60 321207T Made-up textiles (except wear- ing apparel) 6.6 9.2 90.8 24.3 75.7 20.8 378 12.5 318 0.6 84 2.4 98 48 182 52 48 206 138 32130/c Knitting mills 47.3 11.2 88.5 9.6 90.0 4.2 44 5.9 84 1.4 189 1.8 77 97 197 34 66 154 157 322017a Clothing factories 69.7 21.2 78.8 15.9 84.1 2.0 58 3.5 70 1.8 122 1.8 84 83 104 46 54 98 95 323307;i Leather & substitute products, except footwear 2.3 51.4 48.6- 63.4 36.6 2.6 171 4.7 164 1.8 96 2.2 140 97 113 49 51 129 126 32400/a Footwear manufacturing 7.4 26.9 73.1 27.4 72.6 2.8 30 4.7 103 1.6 346 2.2 109 86 327 45 55 236 229 331117;; Sawmills 332.4 27.4 72.6 30.1 69.8 8.9 99 13.8 114 1.5 115 3.7 85 113 132 34 66 114 116 33112/c Plywood, hard board & particle board 124.8 2.1 97.9 1.2 98.8 22.7 159 5.2 57 0.2 35 1.7 60 16 35 30 70 42 42 33113/a Planing, window & door mills, etc. 41.2 30.7 69.3 29.0 71.0 6.6 70 8.1 92 1.2 132 2.8 84 80 139 37 63 117 118 331207T Wooden & cane containers 5.8 74.3 25.7 77.9 22.1 2.7 103 4.4 122 1.7 119 2.1 104 88 140 49 51 120 122 332007i Furniture & fixtures (wood) 36.7 31.1 68.9 36.6 63.4 3.2 52 5.5 147 1.7 282 2.5 121 92 258 48 52 218 193 Capital-labor Labor pro- Capital pro- Labor Gross return Weights Relative % of Total ratio /d duc t yt I/e uCtvity pf earni to cpital /h /i efficiency MIC Value Employment Value added SSIs/ S SSIs/ SI SSI/ (2) index /j codes Manufactured products added SSIs MLIs SSIs MLIs SSIa MLIs SSIs MLIs SSIs MLIs SSIs MLIs SSIs MLIs LE VA-LE A 8 (M$ m) ($'000) (X) ($'000) (2) (no.) (X) ($'000) (%) (X) (2) VA VA - (2) - 34, 35 6 36 Chemicals & Related Products 10 a Paper or paperboard containers boxes 24.9 16.9 83.1 8.5 91.5 6.4 47 5.8 45 0.9 97 2.0 50 59 93 32 68 81 79 34200/a Printing and publishing, etc. 206.8 28.6 71.4 21.3 78.7 7.3 68 9.6 68 1.3 100 3.3 61 86 107 38 62 88 90 35210/c Paints, varnishes & lacquers 37.1 23.8 75.6 13.2 86.8 7.9 51 16.4 48 2.1 94 3.4 43 164 97 23 77 83 85 35220/a Medical & pharmaceutical preparation 18.5 20.0 80.0 21.4 78.6 5.6 94 11.0 109 2.0 115 2.6 45 151 204 50 50 112 125 35231/a Soaps, washing & cleaning compounds 66.7 8.5 91.5 0.9 99.1 3.0 15 4.5 9 1.5 64 2.1 28 81 41 15 85 56 39 35239/a Perfumes, cosmetics and toilet preparation 7.5 36.7 63.3 33.4 66.6 5.3 99 9.0 87 1.7 87 3.0 83 113 89 34 66 87 87 35591/a Remilled latex processed rubber 300.5 5.7 94.2 5.2 94.7 6.4 51 24.0 91 3.8 177 3.0 97 330 175 12 88 167 166 355927a Rubber smokehouse 28.0 15.1 84.9 17.4 82.6 4.5 67 34.6 118 7.7 176 2.2 92 717 180 8 92 171 173 35600/a Plastic products, etc. 95.9 21.7 78.3 17.8 82.2 7.5 71 6.8 79 0.9 110 2.3 89 59 104 31 69 100 9 361007i Pottery, china & earthenware 12.7 7.9 92.1 5.8 94.2 4.5 26 5.0 71 1.1 269 2.2 140 61 192 40 60 190 171 369107i Structural clay products 48.6 30.1 69.9 24.9 75.1 6.4 45' 6.5 77 1.0 171 2.6 81 61 166 38 62 135 133 369917i Cement & concrete products 74.6 25.8 74.2 12.0 88.0 7.8 38 8.3 39 1.1 104 2.8 58 69 89 25 75 8 81 37 & 38 Machinery Equipment 6 Other Metal Products 37102/a Foundries 43.4 31.2 68.8 20.2 79.8 3.5 27 7.3 56 2.1 204 3.2 81 118 164 33 67 155 137 38120/a Furniture & fixtures (metal) 7.2 24.3 75.7 20.6 79.4 3.2 55 7.1 81 2.2 148 2.4 64 148 172 41 59 120 128 38130/a Structual metal products 38.4 37.5 62.5 32.9 67.1 9.2 88 7.9 100 0.9 93 3.2 81 51 93 41 59 96 88 381917;i Tin cans & metal boxes 58.0 9.0 91.0 7.7 92.3 11.4 84 11.5 85 1.0 100 2.7 67 77 109 29 71 96 97 381927i Wire & wire products 42.8 19.9 80.1 14.9 85.1 10.6 47 12.8 71 1.2 151 2.6 70 96 151 21 79 135 134 381937;i Brass, copper, pewter & aluninium products 28.9 18.6 81.4 10.9 89.1 4.5 45 6.5 53 1.4 117 3.1 81 76 89 33 67 96 86 38220/a Agri. machinery & equipment 11.1 47.0 52.1 48.3 51.7 6.8 62 13.5 102 2.0 165 4.1 76 137 194 36 64 142 152 . 382307i Metal & wood working machinery 3.7 70.7 29.3 66.4 33.6 4.6 63 7.1 82 1.5 130 2.9 79 90 133 42 58 110 110 383107a Electrical industrial machinery & apparatus 13.8 38.5 61.5 34.4 65.6 5.8 66 9.5 84 1.6 128 4.1 82 93 130 44 56 109 109 38391/a Cables and wires 36.0 7.0 93.0 3.2 96.8 18.5 53 8.9 44 0.5 83 3.2 56 31 74 28 72 72 69 38392/a Dry cells & storage batteries 25.5 19.0 80.2 9.4 90.5 14.5 122 8.5 44 0.6 36 1.6 29 48 41 27 73 38 38 384317;i MDtor vehicle bodies (only) 12.3 57.2 42.8 61.5 38.5 3.2 140 10.8 119 3.3 85 4.1 101 206 96 41 59 99 98 38439Tc Motor vehicle parts & accessories 15.5 24.6 75.0 26.2 73.2 12.5 91 9.0 109 0.7 120 2.8 113 49 118 30 70 117 116 384497Ta Bicycles, tricycles & trishaws (assembly/parts/accessories) 6.6 31.1 68.9 31.1 68.9 7.2 78 5.9 100 0.8 129 2.6 78 45 167 54 46 113 119 /a Establishments with number of persons engaged totalling 10-49, unless otherwise specified; see notes /b and /c below. /b Includes establishments with 5-9 number of persons engaged. T7 Refer to all the establishments. 7- Refers to the value of fixed assets (as on December 31. 1978) per Derson engaged. 7e Refers to the annual value added per person engaged. 7i' Refers to the annual value added divided by value of fixed assets as on December 31, 1978. /S Refers to the annual wages and salaries per person engaged. / h Refers to the annual value added less salaries and wages divided by value of fixed assets as on December 31, 1978. 7T LE - wages & salaries and VA - value added. /j Index A is derived from the relative labor and capital productivities, and index B is derived from the relative labor earnings and gross returns to capital; the labor and capital components of each index are respectively weighted by LE/VA and (VA-LE)/VA. Source: Department of Statistics (unpublished data). - 105 - Table 8.5.1 Page 1 of 3 Table 8.5.1: PENINSULAR MALAYSIA: TOTAL EMPLOYMENT AND VALUE ADDED IN MANUFACTURING INDUSTRIES BY EMPLOYMENT SIZE SEGMENTS, 1978 MIC Total Employment Size codes Manufactured products <5 5-49 50-199 PZoo Total <5 5-49 50-199 )200 Total -- Total number of persons engaged --- Value added (M$'000) ------------ 31110/a Meat (prepared/preserved) - 70 240 - 310 - 648 9,023 - 9,671 311217a Ice cream - 179 442 - 621 - 1,098 9,662 - 10,760 31129/c Other dairy products - - 256 1,230 1,486 - - 5,392 66,949 72,340 311317W Pineapples (canned) - - 140 2,181 2,321 - - 711 17,894 18,605 311397W Other fruits 6 vegetables (canned/preserved) - 943 850 510 2,303 - 5,544 7,048 29,801 42,393 31140/a Fish & crustaceans (preserved/processed) - 337 1,658 2,275 4,270 - 3,416 10,528 13,340 27,284 311517W Coconut oil 27 856 187 - 1,070 114 11,867 1,929 - 13,910 311527W Palm oil 3 251 6,184 2,600 9,038 266 1,031 368,864 144,752 520,913 311537T Palm kernel oil - 750 235 234 1,219 - 15,018 2,625 3,528 21,171 311597;a Vegetables & animal oil & fats - 159 87 668 914 - 1,359 2,421 31,835 35,615 311627W Rice (large mills) 39 2,140 464 - 2,643 650 26,897 1,814 - 29,361 31163/a Flour mills - - 96 799 895 - - 3,385 39,135 42,520 311647ia Sago & tapioca - 764 313 - 1,077 - 4,874 2,373 - 7,247 311697W Other grains (milled) - 92 61 - 153 - 837 1,698 - 2,535 311717W Biscuits - 672 1,318 1,662 3,652 - 2,709 6,962 10,456 20,127 31172Wb Bakery products - 1,728 299 - 2,027 - 5,783 1,598 - 7,380 311807W Refined sugar - - 57 2,261 2,318 - - 129 85,142 85,271 31190/a Cocoa, chocolate & confectionery - 311 1,252 1,180 2,743 - 1,331 19,865 12,893 34,088 312117W Ice - 474 50 - 524 - 5,432 632 - 6,064 312127W Coffee - 754 66 - 820 - 4,634 443 - 5,078 31213/c Tea - 84 - - 84 - 400 - - 400 312147a Meehoon, noodles & related products - 766 544 506 1,816 - 2,723 6,205 5 072 13,999 31215/b Spices & curry powder - 320 69 - 389 - 2,564 980 - 3,544 31219/a Other food products - 191 674 625 1,490 - 2,859 14,003 14,987 31,850 312207a Animal feeds (prepared) - 671 1,370 - 2,041 - 8,295 31,012 - 39,306 311/12 Food Products 69 12,512 16,912 16,731 46,224 1,030 115,319 509,302 475,784 1,101,432 31310/c Distilled, rectified & blended spirits - 120 141 - 261 - 1,266 6,677 - 7,943 31330/c Malt liquor & malt - - - 1,369 1,369 - - - 74,218 74,218 313407W Soft drinks & carbonated beverages - 486 419 2,060 2,965 - 3,356 11,288 34,872 49,516 313 Beverages - 606 560 3,429 4,595 - 4,622 17,965 109,090 131,677 314/a Tobacco Products _ 1,046 2,583 2,520 6,149 - 2,622 8,996 135,892 147,509 31 Total 69 14,164 20,055 22,680 56,968 1,030 122,563 536,263 720,766 1,380,618 32111/c Natural fiber spinning & weaving - 71 112 8 495 8,678 - 707 946 114,683 116,336 32112 Dyeing, bleaching, printing & finishing of /c yarns & fabrics 16 141 297 11,647 12,101 30 659 1,753 130,428 132,870 32113/c Handicrafts 7 15 - 404 426 5 73 - 2,447 2,524 321147W Batik 17 540 582 - 1,139 18 1,754 4,260 - 6,032 321157W Synthetic textiles - 177 120 2,925 3,222 - 2,870 1,882 17,660 22,412 321197W Miscellaneous primary textiles 4 124 243 - 371 7 774 2,482 - 3,263 321207W Made-up textiles (except wearing apparel) - 128 493 774 1,395 - 1,601 2,042 2,936 6,579 32130/c Knitting mills 18 775 2,599 3,518 6,910 174 4,550 16,988 25,612 47,324 32140/c Carpets & rugs - 40 78 212 330 - 276 778 2,834 3,888 321507W Cordage, rope & twine products - 25 - 844 869 - 24 - 6,067 6,090 321907W Textiles, n.e.c. 7 118 - 731 856 73 627 - (-)1 811 (-)1,102 321 Textiles 69 2,154 4,524 29,550 36,297 307 13,915 31,131 300,856 346,216 322/a Wearing Apparel (Ready Made) - 3,195 2,724 9,147 15,066 - 11,111 13,914 44,692 69,716 32310/a Tanning and leather finishing - 49 120 - 169 - 583 1,740 - 2,323 32330/a Leather & substitute products except footwear - 312 295 - 607 - 1,477 853 - 2,331 323 Leather, Leather Substitutes & Fur - 361 415 * 776 - 2,060 2,593 - 4,654 324/a Footwear - 430 318 853 1,601 - 2,016 2,014 3,322 7,352 32 Total 69 6,140 7,981 39,550 53,740 307 29,102 49,652 348,870 427,938 33111/c Sawmills 10 7,262 16,447 2,783 26,502 379 100,115 197,835 34,032 332,362 33112/c Plywood, hard board 6 particle board - 279 922 12,404 13,605 - 1,462 14,441 108,884 124,786 331137W Planing, window & door mills, etc. - 1,470 1,503 1,817 4,790 - 11,953 11,562 17,727 41,242 331147W Prefabricated wooden houses - 93 129 - 222 - 531 1,146 - 1,678 33119/c Other wood products 11 138 70 309 528 161 1,652 756 4,291 6,861 33120/b Wooden & can containers - 1,007 348 - 1,355 - 4,480 1,271 - 5,751 331907W Wood & cork products, n.e.c. - - 217 221 438 - - 661 965 1,626 331 Wood & Wood & Cork Products 21 10,249 19,636 17,534 47,440 540 120,193 227,672 165,899 514,306 332/b Furniture & Fixtures (Wood) _ 2,445 1,952 3,473 7,870 - 13,419 12,453 10,820 36,692 33 Total 21 12,694 21,588 21,007 55,310 540 133,612 240,125 176,719 550,998 - 106 - Table 8.5.1 Page 2 of 3 MIC Tstal hployment Size codes Manufactured products <5 5-49 50-199 >200 Total <5 5-49 50-1T)99 200 Total -- Total nuber of persons engaged -- -____----- Value added (M$'000) - …---------- 34110/c Pulp, paper & paper board - 37 58 525 520 - 292 546 5,099 5,937 341207W Paper or paper board containers/boxes - 365 1,187 606 2,158 - 2,109 17,744 5,051 24,904 341907Wi Paper & paper products - 969 874 238 2,081 - 6,894 6,405 2,515 15,814 341 Paper & Paper Products - 1,371 2,119 1,369 4,659 - 9,295 24,695 12,665 46,655 342/a Printing, Publishing, etc. - 4,J16 4,848 6,680 16,144 - 44,091 51,779 110,919 206,789 34 Total - 5,987 6,967 8,049 21,303 - 53,386 76,474 123,584 253,444 35110/c Basic industrial chemicals 15 455 853 255 1,578 216 10,011 41,029 656 51,913 351207T Chemical fertiliters & pesticides 7 363 587 758 1,715 439 15,563 16,437 33,501 65,939 3513075 Synthetic resins, etc. 8 107 374 - 489 25 438 15,182 - 15,645 351 Industrial Chemicals 30 925 1,814 1,013 3,782 680 26,012 72,648 34,157 133,497 35210/c Paints, varnishes & lacquers 7 297 625 317 1,246 20 4,879 14,708 17,447 37,054 352207T Medical & pharmaceutical preparations - 358 471 958 1,787 - 3,954 2,776 11,740 18,470 3523175 Soaps, washing & cleaning compounds - 126 501 852 1,479 - 568 10,121 56,051 66,740 3523975 Perfumes, cosmetics & toilet preparations - 278 168 311 757 - 2,505 1,884 3,103 7,491 352907Ta Chemical products, etc. - 755 1,344 766 2,865 - 8,940 23,613 6,303 38,856 352 Other Chemical Products 7 1,3814 3,109 3,204 8!,134 20 20,846 53,102 94,644 168,611 353/c Petroleum Refineries - 49 228 247 524 - 12,396 56,932 1.05,280 174,608 354/c Miscellaneous Products of Petroleus & Coal - 110 - - 110 - 1,835 - - 1,835 35510/a Tire, tube, footwear & other rubber products - 356 760 4,852 5,968 - 3,885 7,275 100,410 111,570 355917W Remilled latex processed rubber 12 554 6,250 4,501 11,417 74 15,711 172,979 111,761 300,526 35592/a Rubber smokehouses - 141 222 570 933 - 4,885 8,760 14,396 28,041 355937W Rubber footwear 2 105 470 5,486 6,063 6 1,007 2,333 26,349 29,695 355997W Other rubber products . 4 870 1,797 3,686 6,357 12 5,340 19,943 31,236 56,531 355 Rubber Products 18 2,126 9,499 19,095 30,738 92 30,828 211,290 284,152 526,363 356/a Plastic Products, etc. _ 2,516 4,100 4,997 11,613 - 17,101 38,886 39,873 95,860 35 Total 55 7,540 18,750 28,556 54,901 792 109,024 432,858 'S8,106 1,100,774 361/a Pottery, China & Earthenwares - 147 729 979 1,855 - 734 8,620 3,356 12,710 362/a Glass & Glass Products - 47 326 1,744 2,117 - 502 3,192 43,899 47,594 36910/a Structural clay products - 1,859 2,779 1,543 6,181 - 12,089 20,555 15,977 48,621 369217W Cement - 52 133 1,904 2,089 - 1,691 1,463 75,278 78,432 3692275 Lime & plaster - 126 123 - 249 - 1,108 611 - 1,719 369917a Cement 6 concrete products - 1,084 1,749 1,374 4,207 - 8,974 22,889 42,785 74,647 36992/a Cut stone & stone products - 140 52 - 192 - 1,766 391 - 2,157 369997; Other nonmetallic mineral products - 170 165 - 335 - 1,435 1,610 - 3,045 369 Other Nonmetallic Mineral Products - 3,431 5,001 4,821 13,253 - 27,063 47,519 134,040 208,621 36 Total - 3,625 6,056 7,544 17,225 - 28,299 59,331 181,295 268,925 37101/c Primary iron { steel - - 138 1,751 1,889 - - 3,465 50,945 54,410 3710275 Iron foundries - 1,207 1,511 1,148 3,866 - 8,758 21,688 12,926 43,372 3710975 Iron & steel, basic shapes - 580 690 761 2,031 - 8,170 23,933 19,724 51,827 371 Iron & Steel Basic Industries - 1,787 2,339 3,660 7,786 - 16,928 49,086 83,595 149,609 372/a Other Nonferrous Metal Basic Products - 88 232 845 1,165 - 751 3,217 12,782 16,750 37 Total - 1,875 2,571 4,505 8,951 _ 17,679 52,303 96,377 166,359 - 107 - iO7 ~~~~~~~~~~~~~~~Table 8.5. 1 Page 3 of 3 MIC Total Employment Size codes Manufactured products <5 5-49 50-199 )200 Total <5 5-49 50-199 )200 Total -- Total number of persons engaged --- ---------- Value added (M$'000) ---------- 38111/c Cutlery - 26 196 698 920 - 1,662 1,092 941 3,695 381127W Tinsmithing - 41 - - 41 - 217 - - 217 381207;a Furniture & fixtures (metal) - 209 399 253 861 - 1,487 3,864 1,850 7,201 381307; Structural metal prodcuts - 1,589 1,983 668 4,240 - 12,625 17,032 8,773 38,430 381917a Tin cans & metal boxes - 388 1,915 2,023 4,326 - 4,460 26,819 26,748 58,027 381927W Wire & wire products - 498 1,502 506 2,506 - 6,393 24,488 11,960 42,841 38193/a Brass, copper, pewter & aluminum products - 479 1,584 511 2,574 - 3,135 15,262 10,492 28,889 381997ia Other fabricated metal products - 311 612 683 1,606 - 5,327 7,086 7,723 20,136 381 Fabricated Metal Products - 3,541 8,191 5,342 17,074 - 35,306 95,643 68,487 199,436 38210/b Engines & turbines - 426 - - 426 - 4,433 - - 4,433 382207a Agricultural machinery & equipment - 399 434 - 833 - 5,372 5,749 - 11,120 382307W Metal & woodworking machinery - 352 146 - 498 - 2,482 1,255 - 3,737 382407; Special industrial machinery - 591 634 - 1,225 - 5,107 7,784 - 12,892 3829177 Refrigerating & air conditioning equipment - 294 221 2,074 2,589 - 1,550 7,014 53,000 61,564 382997W Machinery & equipment, n.e.c. - 3,848 1,916 260 6,024 - 29,002 26,656 4,468 60,126 382 Machinery (Except Electrical & Transport) - 5,910 3,351 2,334 11,595 - 47,946 48,458 57,468 153,872 38310/a Electrical industrial machinery & apparatus - 500 351 449 1,300 - 4,761 2,402 6,659 13,821 38320/a Radio, television & communication equipment & apparatus - 202 3,019 50,376 53,597 - 2,095 27,514 440,459 470,067 38330/c Electrical appliance & housewares 2 71 289 491 853 6 635 4,072 9,023 13,738 38391/a Cables & wires - 130 620 1,103 1,853 - 1,158 17,652 17,155 35,965 383927/ Dry cells & storage batteries 12 281 441 746 1,480 35 2,394 11,091 11,935 25,454 383937W Electric lamps & tubes - 74 163 234 471 - 358 3,003 597 3,958 38399/a Electrical apparatus & appliances, n.e.c. - 265 706 - 971 - 2,862 6,297 - 9,159 383 Electrical Machinery 14 1,523 5,589 53,399 60,525 41 14,263 72,031 485,828 572,162 38410/a Ship building & repairing - 84 361 1,660 2,105 - 526 (-455 27,424 27,495 384317W Motor vehicle bodies (only) - 699 523 - 1,222 - 7,533 4,722 - 12,255 384327W Motor vehicles (manufactured/assembled) - 30 82 5,774 5,886 - 307 3,309 70,906 74,521 38439/c Motor vehicle parts & accessories 7 454 1,381 - 1,842 96 4,069 11,360 - 15,526 384417; Motorcycles & scooters 6 73 165 474 718 20 8,414 634 15,256 24,323 38449/a Bicycles, tricycles, trishaws (parts, accessories & assembly) - 348 531 241 1,120 - 2,051 2,890 1,662 6,604 384 Transport Equipment 13 1,688 3,043 8,149 12,893 116 22,900 22,460 115,248 160,724 38510/a Professional, scientific, measuring & controlling equipment - 17 89 921 1,027 - 362 4,013 14,282 18,657 38520/c Photographic & optical goods - - 85 1,633 1,718 - - 332 12,702 13,034 385307W Watches & clocks - 47 138 214 399 - 190 2,395 2,627 5,212 385 Professional, Scientific Instruments, etc. - 64 312 2,768 3,144 - 552 6,740 29,611 36,903 38 Total 27 12,726 20,486 71,992 105,231 157 120,967 245,332 756,642 1,123,097 39010/c Jewelry & related articles - - - 205 205 - - - 2,179 2,179 390207W Musical instruments - 22 - 289 311 - 322 - 5,184 5,507 39030/c Sporting & athletic goods - 37 56 - 93 - 114 1,128 - 1,243 39091/a Brooms, brushes & mops - 61 73 - 134 - 452 565 - 1,017 39092/c Pens, pencils, office & artist supplies 3 103 399 659 1,164 10 1,510 1,342 3,950 6,814 3909977- Other products - 280 574 1,128 1,982 - 1,460 4,971 6,987 13,419 390/91 Other Manufacturing/Total 3 503 1,102 2,281 3,889 10 3,858 8,006 18,300 30,179 Total ManufacturinR 244 65,254 105,556 206,164 377,218 2,836 618,490 1,700,344 2,980,659 5,302,332 /a Establishments employing 10 or more paid full-time employees only are covered. /b Establishments employing 5 or more paid full-time employees only are covered /c All establishments are covered. Source: The Department of Statistics (unpublished tables). - 106 - Table 8.6.1: PMNSULAR NALAYSIA: DISTIRIITIOVW OF TAL ZIQLOTENT AND VALUE ADED IN NIIUFACTURING SCTOl BY rIDA1ST2IAL DIVISIONS AND ILOTElNT SIZE SEG1ENT, 1978 /a MIC Total nuber of psrsona d_ Value added codes Industrial divisions 5-49 50-199 200 Total - 4 50-19 200 Total Percent of Size Segment ---------------------- 31 Food, beverages & tobacco products 21.7 19.0 11.0 15.1 19.8 31.5 24.2 26.0 32 Textiles, wearing apparel & leather 9.4 7.6. 19.2 14.2 4.7 2.9 11.7 8.1 33 Wood & wood products 19.5 20.5 10.2 14.7 21.6 14.1 5.9 10.4 34 Paper & paper products; printing & publishing 9.2 6.6 3.9 5.6 8.6 4.5 4.1 4.8 35 Chemical, petroleue, coal, rubber & plastic products 11.6 17.8 13.9 14.6 17.6 25.5 18.7 20.8 36 Nonmetallic mineral products except petroleum & coal 5.6 5.7 3.7 4.6 4.6 3.5 6.1 5.1 38 Basic metal products 2.9 2.4 2.2 2.4 2.9 3.1 3.2 3.1 38 Fabricated metal products 19.5 19.4 34.9 27.9 19.6 14.4 25.4 21.2 39 Other manufacturing 0.8 1.0 1.1 1.0 0.6 0.5 0.6 0.6 Total Manufacturing 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Absolute level ('000 no./M$ million) (65) (106) (206) (377) (618) (1,700) (2,981) (5,302) ----------------------- Percent of Industrial Division ----------------------- ( 1000) (Ms mln) 31 Food, beverages & tobacco products 24.9 35.2 39.8 100.0 (57) 8.9 38.8 52.2 100.0 (1,381) 32 Textiles, wearing apparel & leather 11.4 14.9 73.6 100.0 (54) 6.8 11.6 81.5 100.0 (428) 33 Wood & wood products 23.0 39.0 38.0 100.0 (55) 24.2 43.6 32.1 100.0 (551) 34 Paper & paper products; printing & publishing 28.5 33.2 38.3 100.0 (21) 21.1 30.2 48.8 100.0 (253) 35 Chemical, petroleum, coal, rubber & plastic products 13.7 34.2 52.0 100.0 (55) 9.9 39.3 50.7 100.0 (1,101) 36 Nonmetallic mineral products except petroleum & coal 21.0 35.2 43.8 100.0 (17) 10.5 22.1 67.4 100.0 (269) 38 Basic metal products 20.9 28.7 50.3 100.0 (9) 10.6 31.4 57.9 100.0 (166) 38 Fabricated metal products '12.1 19.5 68.4 100.0 (105) 10.8 21.8 67.4 100.0 (1,123) 39 Other manufacturing 12.9 28.3 58.7 100.0 (4) 12.8 26.5 60.6 100.0 (30) Total Manufacturing 17.3 2:8.0 54.7 100.0 (377) 11.7 32.1 56.2 100.0 (5,302) ------------------------ Percent of Major Industrial Group ---------------------- 311 & .7(0) (M$ mln) 312 Food products 27.1. 36.6 36.2 100.0 (46) 10.5 46.2 43.2 100.0 (1,101) 314 Tobacco products 17.0 42.0 41.0 100.0 (6) 1.8 6.1 92.1 100.0 (148) 321 Textiles 5.9 12.5 81.4 100.0 (36) 4.0 9.0 86.9 100.0 (346) 331 Wood & wood & cork products 21.6 41.4 37.0 100.0 (47) 23.4 44.3 32.3 100.0 (514) 342 Printing & publishing 28.6 30.0 41.4 100.0 (16) 21.3 25.0 53.6 100.0 (207) 352 Other chemical products 22.3 38.2 39.4 100.0 (8) 12.4 31.5 56.1 100.0 (169) 355 Rubber & rubber products 6.9 30.9 62.1 100.0 (31) 5.9 40.1 54.0 100.0 (526) 369 Nonmatallic mineral products 25.9 317.7 36.4 100.0 (13) 13.0 22.8 64.3 100.0 (209) 382 Machinery except electrical machinery 51.0 28.9 20.1 100.0 (12) 31.2 31.5 37.3 100.0 (154) 383 Electrical machinery, apparatus, appli- ances & supplies 2.5 9.2 88.2 100.0 (60) 2.5 12.6 84.9 100.0 (572) /a Establishments employing less than 10 paid full-time employees are only partially covered, elaborated in the souirce tabel. Source: Annex Table 8.5. - 109 - Table 8.7: PRELIMINARY DATA ON PROBLEMS ENCOUNTERED BY SMALL MANUFACTURING ESTABLISHMENTS Frequency of Problems by Their Type Gov't Location Competition Raw materials No Bad regula- Sales and/or and/or and/or problem Finance Labor debt tion tax premises marketing supplies Other Total Employment -------------------------------------- Problems Encountered No --------------------------------------… Size Group Less than 5 3 16 16 7 4 3 3 7 2 87 69 (4.3) (23.2) (23.2) (10.1) (5.8) (4.3) (4.3) (10.1) (2.9) (11.6) (100.0) 5-9 - 11 12 5 2 - 3 5 2 3 43 (-) (25.6) (27.9) (11.6) (4.7) (-) (7.0) (11.6) (4.7) (7.0) (100.0) 10 - 19 2 14 21 7 3 - 2 4 7 2 62 (3.2) (22.6) (33.9) (11.3) (4.8) (-) (3.2) (6.5) (11.3) (3.2) (100.0) 20 - 29 - 3 6 1 2 1 3 - 2 - 18 (-) (16.7) (33.3) (5.6) (11.1) (5.6) (16.7) (-) (11.1) (-) (100.0) 30 & above - 3 3 - - - - 3 1 2 12 (-) (25.0) (25.0) (-) (-) (-) (-) (25.0) (8.3) (16.7) (100.0) Total 5 47 58 20 11 4 11 19 14 15 204 (2.5) (23.0) (28.0) (9.8) (5.4) (2.0) (5.4) (9.3) (6.9) (7.4) (100.0) ----------------------- Establishments Grouped by the Nature of Their Growth ------------------------ Nature of Growth Growing 1 13 16 3 6 - 4 7 3 4 57 (1.8) (22.8) (5.3) (10.5) (-) (-) (7.0) (12.3) (5.3) (7.0) (100.0) Declining 4 30 38 14 5 3 6 10 10 3 123 (3.3) (24.4) (30.9) (11.4) (4.1) (2.4) (4.9) (8.1) (8.1) (2.4) (100.0) Stagnant - 4 4 3 - 1 1 2 1 8 24 _ (-) (16.7) (16.7) (12.5) (-) (4.2) (4.2) (8.3) (4.2) (33.3) (100.0) Total 5 47 58 20 11 4 11 19 14 15 204 (2.5) (23.0) (28.4) (9.8) (5.4) (2.0) (5.4) (9.3) (6.90 (7.4) (100.0) Employment --------------------- Problems Encountered in First Two or Three Years of Business -------------------- Size Group Less than 5 8 18 6 3 1 3 13 2 1 55 (14.5) (32.7) (10.9) (5.5) (1.8) (5.5) (23.6) (3.6) (1.8) (100.0) 5 - 9 4 13 3 2 - 2 6 2 32 (12.5) (40.6) (9.4) (6.2) (-) (6.2) (18.8) (-) (6.2) (100.0) 10 - 19 7 16 7 4 - - 10 - 2 46 I (15.2) (34.8) (15.2) (8.7) (-) (-) (21.7) (-) (4.3) (100.0) 20 - 29 I - 7 8 - - 1 2 - 2 20 I (-) (35.0) (40.0) (-) (-) (5.0) (10.0) (-) (10.0) (100.0) 30 & above - 3 1 - - - 3 - 1 8 (-) (37.5) (12.5) (-) (-) (-) (37.5) (-) (10.0) (100.0) Total 19 57 25 9 1 6 6 34 2 161 (11.8) (35.4) (15.5) (5.6) (0.6) (3.6) (3.7) (21.1) (1.2) (100.0) Source: An ad hoc resurvey of 120 small manufacturing estabalishments in the Peninsular Malaysia especially conducted for the mission during the fall 1981. The data refer to the 92 surviving establishments. - 110n Table 9.1: MALAYSIA: COMMERCIAL BANK LOANS OUFTSTANDING TO SMALL-SCALE ENTERPRISES AS OF DECEMBER 31, 1976-80 (M$ million) Sectors 1976 1977 1978 1979 1980 Agriculture 84.3 106.9 165.1 240.4 280.2 Mining and quarrying 18.6 17.9 20.6 30.0 33.8 Manufacturing 150.9 188.9 261.1 412.1 512.7 Building and construction 114.2 135.3 190.1 294.8 338.1 General commerce 390.2 474.0 610.2 927.6 1,230.0 Professional and private individuals 262.2 305.4 373.4 479.8 396.2 Other 169.6 208.4 251.2 398.9 539.7 Total Loans Outstanding 1,190.0 1,436.8 1,871.7 2,783.6 :3,330.7 Source: The Central Bank of Malaysia. - 111 - Table 9.2: MALAYSIA: APPROVED LOANS UNDER THE CGC SCHEME, 1976-80 (M$ million) Sectors/subsectors 1976 1977 1978 1979 1980 Small businesses 67.1 64.5 82.4 100.9 90.9 Of which: Building and construction 9.6 8.5 9.8 13.9 10.1 Sundry retail trade 8.0 8.9 12.2 14.9 12.7 General commerce 11.3 10.6 14.1 12.5 13.9 Transport and motor repair 12.8 9.0 10.8 11.2 12.1 Small-scale industries 9.9 9.5 12.8 14.0 10.9 Of which: Food, drinks and tobacco 2.2 2.0 2.8 3.1 2.1 Timber products and furniture 1.5 2.0 2.5 2.2 1.7 Textiles and clothing 0.9 1.3 1.9 1.6 1.4 Building materials 1.3 1.1 1.3 3.0 2.2 Printing and publishing 1.5 0.7 1.1 1.1 0.6 Agriculture 12.4 15.1 19.9 27.6 22.5 Of which: Padi cultivation and marketing 3.1 3.5 2.9 5.2 4.9 Livestock and poultry farming 3.3 4.7 6.5 8.0 6.5 Fisheries 2.1 1.6 2.2 2.2 1.1 Total Approvals 89.4 89.1 115.1 142.5 124.3 Source: The Credit Guarantee Corporation Malaysia Berhad (CGC). - 112 - Table 9.3: MALAYSIA: FINANCE COMPANY LOANS OUTSTANDING TO SMALL-SCALE ENTERPRISES AS OF DECEMBER 31, 1976-80 (M$ million) Sectors 1976 1977 1978 1979 1980 Agriculture 76.6 88.8 92.6 126.5 168.9 Mining and quarrying 11.8 13.1 21.1 25.4 38.8 Manufacturing 45.2 57.1 59.6 92.4 129.5 Electricity 0.3 0.1 0.7 0.7 1.1 Construction 64.4 77.2 102.8 148.8 202.7 Wholesale, retail trade, restaurants and hotels 65.6 85.0 98.1 143.5 195.2 Transportation and storage 58.1 69.4 74.5 84.3 175.4 Financing, insurance, real estate and business services 32.4 40.5 51.4 92.8 134.1 Other services 7.9 11.4 16.8 24.5 36.8 Private individuals - - - - Total Loans Outstanding 362.3 442.6 517.6 758.9 1,082.5 Source: The Central Bank of Malaysia.. - 113 - Table 9.4: MALAYSIA: TOTAL LOANS OUTSTANDING OF THE MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD, AS OF DECEMBER 31, 1976-80 (Amount in M$ million) 1976 1977 1978 1979 1980 Sectors/subsectors No. Amt. No. Amt. No. Amt. No. Amt. No. Amt. Manufacturing 637 202.0 603 200.9 578 186.2 637 190.5 701 217.6 Food, beverages and tobacco 102 27.2 105 27.6 106 27.2 115 33.6 121 45.6 Textile and weaving apparel 70 80.9 60 46.4 61 38.6 61 36.3 69 38.3 Wood products 101 28.6 91 25.0 73 21.2 69 20.1 85 24.0 Printing and publishing 62 7.5 50 6.1 58 5.6 74 6.1 74 5.8 Chemicas and chemical products 71 26.3 62 27.8 73 29.5 88 24.1 102 23.7 Rubber products 30 10.6 27 12.2 26 12.1 30 14.8 35 20.5 Nonmetallic mineral products 40 13.5 24 12.1 32 11.2 31 15.9 31 20.7 Basic metal and metal products 96 25.2 92 2Q.3 59 14.8 71 13.4 82 17.7 Machinery and transport equipment 43 10.9 46 9.2 70 22.5 72 20.0 74 16.4 Other 22 1.3 46 5.2 20 3.5 26 6.2 28 4.9 Nonmanufacturing 66 20.4 30 18.3 31 18.5 40 17.7 45 15.9 Total Loans Outstanding 703 222.4 633 219.2 609 204.7 677 208.2 746 233.5 Source: Malaysian Industrial Development Finance Berhad. - 114 - Table 9.5: MALAYSIA: TOTAL LOANS OUTSTANDING OF PENBANGUNAN BANK MALAYSIA BERHARD AS; OF DECEMBER 31, 1976-80 (M$ million) Subsectors 1976 1977 1978 1979 1980 Nonmetallic products and quarrying 2.1 2.8 2.3 2.7 3.7 Food and tobacco 2.8 6.5 7.5 9.5 13.6 Textile 0.5 0.5 0.2 0.8 1.0 Wood and furniture 1.0 2.0 3.9 5.1 5.6 Printing and publishing 0.6 1.0 1.9 1.9 1.3 Chemicals and chemical products 0.2 0.2 1.0 1.1 6.4 Rubber products - - 0.2 0.2 1.8 Machinery and metal products 1.9 2.1 2.0 4.1 14.6 Other 0.1 2.1 7.8 7.6 57.8 Total Loans Outstanding 9.2 17.2 26.8 33.0 105.8 Source: Penbangunan Bank Malaysia Berhard.