The Technical Efficiency Analyses of Manufacturing Sector in Malaysia: Evidence From the First Industrial Master Plan (1986-1995)

Abstract

This paper attempts to estimates the technical efficiency for all manufacturing industries in Malaysia for the periods of 1986 up to 1995. By utilizing the stochastic frontier model (SFM), it is shows that the technical efficiency for all sectors constantly increases at 0.01 percentage points each year. The Malaysian manufacturing industry during the stipulated periods was classified as input-driven, largely dominated by labour and capital. It was found that the technical efficiency over time across industries is rising over time at a decreasing rate and the resource based industries (RBI) found to be technically efficient compared to non-RBI groups.

Análisis de eficiencia técnica en el sector manufacturero chileno: una aproximación con fronteras estocásticas de producción

“…El consenso general que explica estas diferencias es la incorporación a los procesos productivos de factores de mayor productividad. Un ejemplo de ello es lo señalado por Rasiah (1995) y Asid (2010). Ambos autores, al analizar la industria malaya observan que el éxito mostrado durante los últimos años se debe principalmente a la utilización de factores productivos de mayor sofisticación, especialmente capital y trabajo, lo cual ha sido posible debido al desarrollo de estrategias de inversión y reformas al mercado laboral.…”

Significance of Studying Product Diversification, Geographic Diversification, and Their Interaction Impacts for Malaysian Companies: A Literature Review

“…Regarding Malaysian trade, the export of manufactured products made the largest contribution to Malaysia's total exports, wherein, competitive pricing, product improvement, and better marketing strategies facilitated Malaysian products to penetrate strategically important markets like Oceania and Africa (Asid, 2010). Among manufactured products, export of electrical and electronic products represented largest share of exports around 1990's.…”

“…During the occurrence of Asian financial crisis in mid of 1997, Malaysian economy had been marking high growth for a decade for over 8% per annum, lowering rates of unemployment, escalating pressures on wage rates, and overinvestment in properties and infrastructure facilities (Asid, 2010;Thillainathan, 1999). Malaysia is rapidly shifting itself into knowledge-based, service-focused economy in number of leading industry sectors and market segments (Abdulai, 2004;Cheng, 2001;Ministry of International Trade and Industry [MITI], 2010;Muhammad, Char, Yasoa, & Hassan, 2010).…”

“…Since the independence of Malaysia in 1957, Malaysian economy has transformed itself from heavy reliance on rubber plantation and tin mining to fast pace industrial based society (Asid, 2010;Mun, 2007). During the occurrence of Asian financial crisis in mid of 1997, Malaysian economy had been marking high growth for a decade for over 8% per annum, lowering rates of unemployment, escalating pressures on wage rates, and overinvestment in properties and infrastructure facilities (Asid, 2010;Thillainathan, 1999).…”

Particulate Matter Levels in Ambient Air Adjacent to Industrial Area

“…This developments has contributed in increasing of the gross domestic product (GDP) from 19.64% in 1980s to 31.56% in 2004 [1]. The electrical and electronics manufacturing sector has enhanced the Malaysian economicby more than 60% during the period from 1991 to 1996 [2]. However, most of industrial activities including the large combustion installations burning fuel oil or coal; cement factories; waste incinerators and road traffic, wood industries and others are correlated with the increasing of air pollution [3].…”