Report No. 3851-MA \7}LE CO;PY

MalaysiaDevelopment Issues and Prospects ofSmall Enterprises(In Three Volumes) Volume Ill: Annexes and Statistical TablesJune 25, 1982Projects DepartmentEast 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 recipientsonly in the performance of their official duties. Its contents may not otherwisebe disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

Currency Unit - Ringgit (M$)

M$1 US$0.44US$1 = M$2.25

ABBREVIATIONS

BEP - Bumiputra Entrepreneurship ProgramBPM - Bank Pertanian MalaysiaBPMB - Bank Pembangunan Malaysia BerhardBNM - Bank Negara MalaysiaCCDSE - Coordination Committee for Development of Small EnterprisesCCC - Credit Guarantee CorporationEDPs - Entrepreneurship Development ProgramsEPU - Economic Planning UnitFA - Financial Assistance (programs)FMP - Fourth Malaysia PlanFTZs - Free Trade ZonesGOM - Government of MalaysiaICA - Industrial Coordination Act, 1975LSEs - Large-Scale Enterprises (employing 200 or more persons)MARA - Majlis Amanah RakyatMCYSYD - Ministry of Culture, Youth and Sports - Youth DivisionMEDEC - Malaysian Entrepreneurship Development CenterMIC - Malaysian Industrial Classification (Updated)MIDA - Malaysian Industrial Development AuthorityMIDF - Malaysian Industrial Development Finance Co.MIDFIC - MIDF Industrial Consultants Sendirian BerhardMIEL - Malaysian Industrial Estate Sendirian BerhardMLEs - 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 DivisionMTISSED - Ministry of Trade and Industry - Small-Scale Enterprise

DepartmentNEP - New Economic PolicyNPC - National Productivity CenterPE - Pernas-Edar BerhardSIRIM - Standards and Industrial Research Institute of MalaysiaSSEs - Small-Scale Enterprises (employing 5 to 49 persons)SSIs - Small-Scale (Manufacturing) Industries (employing 5 to 49 persons)SLS - Special Loan SchemeSLGS - Special Loans Guarantee SchemeTA - Technical AssistanceTSEs - Tiny-Scale (or Traditional) Enterprises (employing l to 4 persons)

GOVERNMENT OF MALAYSIAFISCAL 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 . . . . . . . 12. Definition (Size Standard) of SSEs . . . . . . . . . . . . . 33. 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) 82. The Bank Pembangunan Malaysia Berhad (BPMB) . . . . . . . . . 103. The Credit Guarantee Corporation (CGC) ... .... . . . . 154. The Bank Pertanian Malaysia (BPM) . . . . . . . . . . . . . . 175. The Majlis Amanah Raayat (MARA) . . . . . . . . . . . . . . . 196. The Malaysian Industrial Estates Sendirian Berhad (MIEL) . . 227. Other Institutional Programs ... . . ..... . . . . . . 23

ANNEX III: MAJOR PROGRAMS OF TECHNICAL ASSISTANCE TO SMALL-SCALE 25ENTERPRISES

1. Majlis Amanah Raayut (MARA) .252. National Productivity Center (NPC) . . . . . . . . . . . . . 283. Ministry of Culture, Youth and Sports-Youth Division (MCYSYD) 344. Malaysian Entrepreneurial Development Center (MEDEC) . . . . 365. Pernas Edar Sdn. Bhd. (PE) .396. Bank Pembangunan Malaysia Berhad (BPMB) . . . . . . . . . . . 407. Standards and Industrial Research Institute of Malaysia

(SIRIM) . . . . . . . . . . . . . . . . . . . . . . . . . . 428. MIDF Industrial Consultants (MIDFIC) . . . . . . . . . . . . 459. Other Institutions .46

ANNEX IV: RATIONALE FOR THE PROPOSED STRENGTHENING OF THE SMALLENTERPRISES DEVELOPMENT DIVISION OF THE MINISTRY OFTRADE AND INDUSTRY 47

1. Introduction .. 472. Rationale for the Suggested Changes in MTISED ... . . . . . . 483. 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 oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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LIST OF ANNEX TABLES

Part 1

SECTION I -- OVERALL ECONOMYf

Table No. Page No.

1.1 Malaysia: Gross Domestic Product by Econom:ic Activityin 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 (SoleProprietorship and Partnership), 1966-1980 . . . . . . . . . 60

Part 2

SECTION II - PRINCIPAL STATISTICS FOR TUE 34 SECTORS

2.1 Peninsular Malaysia: Principal Statistics by Sectors, 1978 . . 612.2 Peninsular Malaysia: Principal Statistics by Sectors, 1973 . . 622.3 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 SelectedSectors by Total Employment Size Group, 1978 . .... . . . 64

3.2 Peninsular Malaysia: Number of Persons Engaged in Selected

Sectors by Total Employment Size Group, 1978 . .... . . . 653.3 Peninsular Malaysia: Value Added in Selected Sectors by

Total Employment Size Group, 1978 ... . . . . . . . . . . 663.4 Peninsular Malaysia: Fixed Assets in Selected Sectors by

Total Employment Size Group, 1978 . . . . . . . . . . . . . . 673.5 Peninsular Malayisa: Gross Output in Selected Sectors by

Total Employment Size Group, 1978 ... . . . . . . . . . . 683.6 Peninsular Malaysia: Principal Statistics of Selected

Sectors by Total Employment Size Group, 1973 ... . . . . . 693.7.1 Peninsular Malaysia: Principal Statistics of Selected

Sectors by Employment Size Segments, 1978 ... . . . . . . 703.7.2 Peninsular Malaysia: Principal Statistics of Selected

Sectors by Employment Size Segments, 1973 ... . . . . . . . 723.8 Peninsular Malaysia: Principal Statistics of Selected

Sectors by Fixed Assets Size Group, 1978 ... . . . . . . . 753.9 Peninsular Malaysia: Principal Statistics of Selected

Sectors by Fixed Assets Size Group, 1973 ... . . . . . . . 74

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Table No. Page No.

3.10.1 Peninsular Malaysia: Principal Statistics of SelectedSectors by Fixed Assets Size Group, 1978 ... . . . . . . 75

3.11 Peninsular Malaysia: Employment Per Establishment inSelected Sectors by Type for Smallest Size Groups,1973,74/75 .... . . . . . . . . . . . . . . . . . . . . 76

SECTION IV - OPERATIONAL CHARACTERISTICS OF THESELECTED SECTORS BY SIZE GROUPS OR SEGMENTS

4.1 Peninsular Malaysia: Operational Characteristics ofSelected Sectors by Total Employment Size Group, 1978 . . . 77

4.2 Peninsular Malaysia: Operational Characteristics ofSelected Sectors by Total Employment Size Group, 1973 . . . 78

4.3.1 Peninsular Malaysia: Operational Characteristics ofSelected Sectors by Employment Size Segments, 1978 . . . . 79

4.4.1 Peninsular Malaysia: Operational Characteristics ofSelected Sectors by Employment Size Segments, 1973 .... 80

4.5 Peninsular Malaysia: Operational Characteristics ofSelected Sectors by Fixed Assets Size Group, 1978 . . . . 81

4.6 Peninsular Malaysia: Operational Characteristics ofSelected 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 PrincipalStatistics in Employment Size Segments by SelectedSectors, 1978 .83

5.2.1 Peninsular Malaysia: Percent Distribution of PrincipalStatistics in Fixed Assets Size Segments by SelectedSectors, 1978 ..................... 85

SECTION VI - STRUCTURAL CHARACTERISTICS OF THESELECTED SECTORS BY SIZE GROUPS

6.1 Peninsular Malaysia: Percent Distribution of Number ofEstablishments in Selected Sectors by Employment SizeGroup, 1978 .86

6.2 Peninsular Ma aysia: Percent Distribution of Number ofPersons Engaged in Selected Sectors by Employment SizeGroup, 1978 .87

6.3 Peninsular Malaysia: Percent Distribution of Value Addedin Selected Sectors by Employment Size Group, 1978 . . . 88

6.4 Peninsular Malaysia: Percent Distribution of Fixed Assetsin Selected Sectors by Employment Size Group, 1978 ... . 89

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Table No. Page, No.

6.5 Peninsular Malaysia: Percent Distribution of Gross Outputin Selected Sectors by Employment Size Group, 1978 . ... 90

6.6 Peninsular Malaysia: Percent Distribution of PrincipalStatistics in Selected Sectors by Total Employment SizeGroup, 1973 ............ -.- "1

6.7.1 Peninsular Malaysia: Percent Distribution of PrincipalStatistics in Selected Sec.tors by Employment SizeSegments, 1978.92. ........... . 92

6.7.2 Peninsular Malaysia: Percent Distribution of PrincipalStatistics in Selected Sectors by Employment SizeSegments, 1973 .... . . . . . . . . . . . . . . . . . . 93

6.8 Peninsular Malaysia: Percent Distribution of PrincipalStatistics in Selected Sectors by Fixed Assets SizeGroup, 1978 ......... . 94

6.9 Peninsular Malaysia: Percent Distribution of PrincipalStatistics in Selected Sectors by Fixed Assets SizeGroup, 1973 .... . . . . . . . . . . . . . . . . . . . 95

6.10.1 Peninsular Malaysia: Percent Distribution of PrincipalStatistics in Selected Sectors by Fixed Assets SizeSegments, 1978 ............ . 96

SECTION VII - AVERAGE ANNUAL GROWTH RATES OF THESELECTED SECTORS BY SIZE GROUIPS

7.1 Peninsular Malaysia: Average Annual Growth Rates ofSelected Sectors by Total Employment Size Group,1973/74-1978 ... . . . . . . . . . . . . . . . . . . . . 97

7.2.1 Peninsular Malaysia: Average Annual Growth Rates ofSelected Sectors by Employment Size Segments,1973/74-1978 .......... . . 98.

7.3 Peninsular Malaysia: Average Annual Growth Rates ofSelected 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 inManufacturing Sector by Employment Size Segments andStates, 1973 .C.I. ....... . ........ . . .. -1o

8.2.1 Peninsular Malaysia: Number of Persons Engaged inManufacturing Sector by Employment Size Segments andStates, 1973 .......... . . . 101icIl

8.3.1 Peninsular Malaysia: Value Added of Manufacturing Sectorby Employment Size Segments and States, 1973 .* - 102

Table No. Page No.

8.4.1 Peninsular Malaysia: Economic Significance and RelativeEfficiency of Selected SSIs, 1978 . . . . . . . . . . . . 103

8.5.1 Peninsular Malaysia: Total Employment and Value Added inManufacturing Industries by Employment Size Segments,1978 .105

8.6.1 Peninsular Malaysia: Distribution of Total Employmentand Value Added in Manufacturing Sector by IndustrialDivisions and Employment Size Segments, 1978 . . . . . . 108

8.7 Peninsular Malaysia: Preliminary Data on ProblemsEncountered by Small Manufacturing Establishments . . . . 109

Part 4

SECTION IX - FINANCIAL ASPECTS

9.1 Malaysia: Commercial Bank Loans Outstanding to Small-ScaleEnterprises, 1976-80 . . . . . . . . . . . . . . . . . . 110

9.2 Malaysia: Approved Loans under the CGC Scheme, 1976-80 . 1119.3 Malaysia: Finance Company Loans Outstanding to Small-Scale

Enterprises, 1976-80 . . . . . . . . . . . . . . . . . . 1129.4 Malaysia: Total Loans Outstanding of the Malaysian Indus-

trial Development Finance Berhad, 1976-80 . . . . . . . . 1139.5 Malaysia: Total Loans Outstanding of the Pemboangunan Bank

Malaysia Berhard, 1976-80 .1149.6 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 tothe entire Malaysian economy and derives data from the Ministry of Finance,Economic Planning Unit, and Registar of Businesses, besides the Departmentof Statistics (DOS). (See Section I, Tables 1.1 to 1.3.) Parts 2 and 3relate to Peninsular Malaysia only and derive data mainly from theDepartment of Statistics. Part_2 covers the 34 nonagricultural sectors forwhich the DOS undertook special tabulation for the mission for the latestavailable year, 1978. Primarily due to the time constraint under which thebasic data had to be processed and analyzed, principal statistics (such asthe number of establishments, total number of persons engaged, value added,gross output, fixed assets, salaries and wages) are provided for all the 34sectors 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 12sectors for 1978 and five sectors for 1973 (or 1974). These sectors wereselected according to their contribution to the value added in 1978, thoughready 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 the34 sectors in 1978. The contribution of the selected 12 sectors (abovementioned five sectors together with road haulage, bus transport, quarrying,housing developers, produce brokers, finance companies and insurancecompanies) varied from 91% to 95% of the total for the 34 sectors in termsof the number of establishments, total employment or value added. Part 3relates 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 refersto the loans taken by them from commercial banks, finance companies anddevelopment institutions (see Section IX, Tables 9.1-9.6).

1.02 The two types of size distributions included in the Annex are bythe total employment and fixed assets size groups. The former is exten-sively used in this report,/l and pertains to the total number of personsengaged - consisting of working proprietors and unpaid family workers, andpaid part- and full-time employees. For each size criterion the basic dataare available in ten size groups, and the principal statistics are providedfor them in Section III, Tables 3.1 to 3.6, 3.8 and 3.9. However, it wasdesirable to combine these ten size groups into four size segments in orderto construct statistical profiles suitable for providing an analytical basefor studying government support programs and policies. These four segmentsare the tiny-, small-, medium- and large-sized establishments (TSEs, SSEs,MSEs and LSEs respectively), and the statistical results are presented inTables 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 brieflyenunciated in the following paras. 1.10-1.12.

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1.03 While there may be strong social and political c.isiderations forpromoting SSEs in Malaysia, as elsewhere in the world, there may also beeconomic considerations which impel a government to take special measuresfor protecting and developing SSEs. Whether economic considerationsactually exist or not is worth investigating, and the approach followedhere is to conduct a comparative analysis of the abovementioned prominent8 to 12 sectors by the scale of operation in terms of the operationalcharacteristics such as the labor productivity, capital productivity andcapital-labor ratio. (See Section IV, Tables 4.1, 4.2, 4.5 and 4.6 by sizegroup, and Tables 4.3.1 and 4.4.1 by size segment.)

1.04 The structure of the nonagricultural business activity, comprisingof 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 isindicated by estimating the shares in terms of the principal chiaracteristicsof the segment. The resulting industrial or economic activity structure bysize segment is provided in Section V, Tables 5.1.1 to 5.2.1. Second, theeconomic significance of a size group or segment of any sector is indicatedby estimating the shares in terms of the principal characteristics of thewhole 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 and6.10.1 by segment.

1.05 The growth performance of SSEs has also been studied by sectorsin relation to establishments of other sizes and in terms of the five princi-pal characteristics. The scope of the study was, however, limited by severalpractical considerations. For instance, the latest year for which the rele-vant data could be compiled was 1978, and the earliest year during the 1970sfor which reasonably comparable data could be compiled was 1973 or 1974.Moreover, the analysis is confined to five sectors (manufacturing, retailtrade, wholesale trade, construction, and mining), and no attempt is made toestimate the growth rates by employment or fixed assets size groups/segmentsfor the remaining 29 sectors (which together contributed only 15% of the 34sectors' total value added in 1978). (See Section VII, Tables 7.1, 7.2.1and 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 datacompilation. Yet, it has been possible to analyze the size distribution ofthe overall manufacturing sector by the 11 States in the Peninsular Malaysiain terms of the number of establishments, total employment and value addedfor 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 ofsupport programs for achieving its socio-economic objectives, it would behighly desirable to examine the empirical evidence, if any, that provideseconomic justification and rationale to the promotional-activities. Asdiscussed in Chapter 2, Section D of the Main report, the data deficiencieswere formidable in conducting the analysis, yet we were able to obtain

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estimates of relative efficiencies for SSIs in a larger number of manufac-turing industries. (See Table 8.4.1.) The basic data on total employmentand value added by the four size segments for all individual industries arepresented in Table 8.5.1. As the employment coverage of these industries isneither complete nor uniform, the resulting nature of coverage has beenidentified for each industry. Despite this coverage limitation, it wasdesirable 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 andTobacco Products). It was also possible to identify 10 major industrialgroups (such as MIC Code 321 Textiles) which together provided M$3.95billion (out of M$5.30 billion) manufacturing value added in 1978. (SeeTable 8.6.1.)

1.08 The census or survey type of information analyzed above serves anextremely useful though only a limited purpose, the limitations generallystem from the limited scope of such inquiries. For instance, information onskill composition of employment, degree of capital utilization, source offinance, marketing channels, problems confronting an establishment,awareness of and access to government support programs, impact of governmentpolicies and administrative procedures, etc. is seldom compiled through suchinquiries. The mission made a modest attempt to gather some information onsmall scale manufacturing establishments by repeating the survey conductedin the Peninsular Malaysia by Mr. Chee Peng Lim in 1974 for his doctoralthesis./l Because of the cost and logistic considerations, however, thescope and coverage of this special inquiry were further restricted to some100 establishments (out of the original 400). The preliminary statisticalresults on the problems encountered by small manufacturing firms during1981, and on the interrelationship between the constraints and growth arepresented in Table 8.7.

1.09 The amounts of loans approved or outstanding to SSEs by economicsectors and subsectors for the past five years (1976-80) are given inSection IX, Tables 9.1-9.6. A lack of uniformity in the definition of SSEsused by various financial institutions, however, inhibits a clear andmeaningful overview of the financial situation.

2. Definition (Size Standard) of SSEs

1.10 The Government recognizes the need for establishing size standardsfor SSEs, but there is no universally best way to define SSEs or relatedconcepts. Statistical, administrative, and analytical definitions have tobe 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 - FinalReport (Faculty of Economics and Administration, University of Malaya,Kuala Lumpur, 1975, unpublished).

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useful standard classification, especially to facilitate the development,monitoring and evaluation of government support programs and policies./! Asin many other countries, in Malaysia too many definitions - im[plicit orexplicit, administrative or statistical, which may be often incompatible arein vogue. For instance, financial institutions (commercial banks, financecompanies, development banks, etc.) define SSEs mostly in terms of the valueof fixed assets or amount of loans, and these values or amounts may differfrom institution to institution as well as over time. The Ministry of Tradeand Industry does not define small or large establishments perse, butrequires registration of manufacturing establishments under the IndustrialCoordination Act in terms of certain value of fixed assets or employment.The Department of Statistics, on the other hand, applies differentemployment cutoff points in conducting its annual manufacturing survey, andan annual turnover point in conducting the construction survey. As aresult, any evaluation or analysis of the impact of government policies andprograms to support SSEs becomes quite onerous.

1.11 The issue of definition, or size standard of SSEs is actually farmore 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 uniformdefinition in terms of a single characteristic for all the sectors mainlyfor the sake of brevity. Data on. four size distributions were (could havebeen) available for many (all) sectors, out of which two were in terms ofthe value of fixed assets or turnover/output/revenue, and two were in termsof the number of employees - total or paid full-time.

(b) Most financial institutions favor a monetary base for sizestandards. Although a monetary component is useful, it is subject toseveral major qualifications. First, it often refers to fixed assets andthereby excludes stocks or inventories. It would seem more appropriate toconsider total assets (fixed plus stocks), as they refer to the totalcapital resources, and not merely to a component of it. Specifically, thevalue of stocks is a more important component of total assets than the valueof fixed assets in sectors, such as retail and wholesale trade. Second, theproportion of leased fixed assets (plant and machinery, transportequipment, building, or land) to assets in use may differ from establishmentto establishment, though not the corresponding employment or output/turnoverlevels. Third, depending upon the age structure of fixed assets, theirbook value (as recorded in the account books of an establishment) differsfrom the replacement or market value, the latter may be a better proxy ofthe capital resources in economic terms. Finally, any monetary measurement

/1 A secondary consideration could be to facilitate internationalcomparability for analytical purposes, which could be acquired onlyin terms of the employment cut-off points.

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needs adjustment for inflation, and a periodic revision (say, every threeyears or so) may be needed to accommodate the inflation and retain the samereal value of assets.Ii

(c) The criterion in terms of employment size is also subject to manyqualifications. First, if total employment is used, it includes paid orunpaid part-time workers (some of which may be proprietors). Though theproportion of such workers goes down as the total employment size rises (seeTable 3.11), it is subject to intersectoral, interindustry and interregionalvariations for any given employment size. Second, two or more establish-ments of the same employment size in the same industry may be very differentin 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 adequatecriterion of size standard for SSEs.

(d) Both the capital and labor intensities are subject to substantialvariations by sectors and subsectors. Use of a single size standard maynot, 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 ormeasurement, and therefore its definition should not remain fixed(exclusively or primarily) in absolute terms. A small enterprise may besmaller only in relation to a larger enterprise. With the growth of aneconomy the average size of an establishment tends to rise, and it may beuseful to revise the definition every five years or so.

(f) Whatever size criterion or criteria are adopted by the Governmentnow and modified later as the circumstances change, it would be desirable toensure that the statistical data in a time-series form continue to beavailable on a compatible basis so that policy-oriented empirical analysiscan be conveniently conducted.

(g) Whatever size standard is adopted, even if it is a combination ofemployment and assets, SSEs belonging to multi-establishment firms could bequite different in their characteristics than others.

1.12 Following a discussion of the size standard at conceptual ormethodological level, it would be interesting to compare the empiricalresults of the two size standards: in terms of the total employment andfixed assets. If the scale of operation is defined in terms of the value offixed assets size group (instead of the total employment size group, as usedin the Main Report), the overall picture that emerges for the above-mentioned12 leading sectors combined is not very different though there are someimportant differences by individual sectors such as manufacturing, retail

11 Being cognizant of this consideration, MIDF periodically revises itsdefinition of SSEs.

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trade, wholesale trade, or construction./l For instance, about 42% of themanufacturing establishments were TSEs according to the lowest employmentsize groups (of less than 5), but only 8-9% could be tiny or very smallaccording to the fixed assets size group (of less than M$10,000). Apercentage similar to the criterion in terms of the number of establishmentswas 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 byboth the size groups were available and which covered 90% to 95% of thenonagricultural activity covered by the 34 sectors in 1978, then the twodistributions for any characteristic tended to converge reasonably well. Inother words, though the sectoral composition of SSEs is quite sensitive tothe size criterion in use, their overall size (in terms of the number ofestablishments, 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 andconduct policy-oriented economic analysis, it became necessary for themission to fill some important voids in the data base. Since an evaluationof the industrial data base has been done elsewhere (see footnote (1) onpage 6. in the Main Report), no attempt is made here to evaluate theadequacy of the present data base, even though industrial coverage of thepresent data base is wider than the earlier one (which was confined to themanufacturing sector). While the present study relates to all the 34nonagricultural 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, exceptmanufacturing for which some disaggregate analysis could be done. Whilenumerous data gaps have been filled by the mission by utilizing theavailable partial information (as apparent from the statistical tables), abrief commentary on the limitations of the present data base is stillwarranted (even if it means belaboring a well recognized point):/3

/1 It would have been more appropriate in the present context, if sizedistribution statistics were available by total assets instead of (orbesides) the fixed assets.

/2 The comparative analysis is confined to the ten size groups of totalemployment and fixed assets. Alternatively, if the data on individualestablishments can be processed after arranging them in ascending orderof a characteristic, then establishments could be grouped as deciles andcorresponding sizes in terms of employment, fixed assets, etc. could becompared. 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 theMain 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 onpage 30, and /2 on page 31.

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(a) The entire data base relates only to Peninsular Malaysia as noconsolidated and compatible data were available for the whole of Malaysia.The mission understands that most of the data are now available includingthat for Sabah and Sarawak.

(b) To the extent that the large gaps between the results of laborforce and establishment surveys do not arise due to differences in theconcepts and measurement used in the two types of surveys, the remaininggaps would remain a matter of serious concern to the policymakers andusers of industrial statistics (see para. 2.03 and Table 1 in Volume II fordetails.) These gaps reinforce the need for conducting a sample survey ofhousehold establishments.

(c) While a lack of comparability between the absolute numbers ofbusiness establishments reported by the Office of the Registrar ofBusinesses and the DOS, and to some extent even between the growth ratesderived from them is recognized (see para. 2.20 in Volume II), yet the largegap between the latter reinforces the need for improving the masterlist/frame used by the DOS. This is also corroborated by the findings ofTechnonet Asia's study on metalworking industries (see para. 6.10 in VolumeII).

(d) The latest available year was 1978 with the exception of a fewsectors 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 groupswere not fully available for important sectors such as manufacturing andconstruction. For instance, out of 118 manufacturing industries, for asmany as 63 industries no data were available for establishments employingless than 10 paid full-time persons;/2 and data on construction contractorswith annual turnover of less than M$100,000 were also not available byemployment 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 groupswould have to be combined whenever the number of establishments in a sizegroup is less than three so that the confidentiality of a return ispreserved. However, in the data base available to the mission theestablishment size groups of 20-29 and 30-49 in both retail and wholesaletrade were combined. The mission understands that this combination was doneonly for the purposes of publication and the disaggregated data can beavailable for official use.

/1 Over the last two years the DOS has made significant progress as tar asthe timeliness of available data is concerned. For instance, the 1979data were available in March 1982. Moreover, the 1981 industrial censusand establishment surveys have been launched almost six months ahead ofthe normal schedule.

/2 This is due to the use of certain employment cutoff points below whichthe DOS has not been collecting the data in its annual surveys.

/3 The mission understands that the catering activity is covered only forthe odd-numbered calendar years and the data (without size clas) for1979 were available in March 1982.

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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 wasestablished in March 1960, as the country's first development financeinstitution with the objective of promoting the growth of an infantmanufacturing sector and of diversifying the agriculture-oriented economy.Originally, foreign investors held the majority ownership of MIDF-s capitalof M$10 million, but this was transferred to Malaysian control in 1970.Initially MIDF's progress was slow. Following the recommendations of an adhoc committee, the Board of Directors was reconstituted in 19.67 with amajority of Malaysian Directors. As of March 31, 1981, around 41% of MIDF-sshare capital of M$79.6 million (authorized M$150 million) was held by theGovernment of Malaysia and 47% by 34 banking and other financialinstitutions, of which the Malayan Banking Corporation Berhacl is the largestprivate shareholder (12.2%). As of March 1981, MIDF had financed 2,689projects with a total value of M$1,087 million iLn nearly all the majorsubsectors of manufacturing. These projects have resulted in fixed capitalinvestment of M$2,854 million; t:hey are estimated to have generated foreignexchange 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 modernfactory units for sale or lease to medium and small industries. In 1971,the Industrial Consultants SendiLrian Berhad (MIDFIC) was formed to provide awide range of management and consultancy services. MIDF has also a majorityshareholding in the Arab-MalaysiLan Development Bank (AMDB) established in1975. Group profits (M$20.8 miLlion in FY80/81) have been growing duringthe past five years in spite of the fact that total assets and the portfoliohave stagnated. During the initial phase, MIDF could secure substantialfunds 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 ofMarch 31, 1981. Funds raised from official sources (World Bank, AsianDevelopment Bank, Kreditanstalt fur Wiederaufbau) stood at M,$7.7 million,while resources from the issue of medium-term notes with maturities of 5-7years and interest rates of 7-8,% amounted to M$53.5 million. The group scapital and reserves stood at M8159.1 million. MIDF employed a total staffof 247 (March 31, 1981), 48 of whom were stationed at the Company-s sevenbranch offices.

Objectives

2.03 MIDF aligns itself with the nation's industrial strategies andaims at innovatively meeting the growing and changing needs of themanufacturing sector. When the New Economic Policy was introduced, MIDF

directed its own strategy towards assisting the Bumiputra and small-scalesectors, 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 theacquisition of fixed assets (including land) normally not inexcess 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% oftotal acquisition cost, to be repaid on a monthly installmentbasis; and

(d) working capital loans, equity financing and services such asfeasibility studies are offered to a limited extent for Bumiputraenterprises only.

Terms and Conditions

2.05 MIDF extends term loans with maturities of up to 15 years atmarket rates, currently between 11-13%, depending on the merits of eachcase. Financing normally covers only 50% of the project cost, indicating a1:1 capital gearing policy for incremental investment. All loans have to befully secured. However, softer terms apply to loans extended by MIDF'sBumiputra Division: projects qualify for an interest rate subsidy ofbetween 0.5-1%, debt/equity requirements are reduced to a 60:40 ratio, andworking capital financing is also extended, if the borrower proves that hehas 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 forenterprises 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 ona cumulative basis and representing 15.8% of total outstanding loans. Thosestates classified as "less developed" absorbed more than one-third of all out-standing small loans. In terms of number of loans, the metal industry hasabsorbed about 22% of all small loans during the past 5 years, followed by

/1 In addition to MIDF's factory mortgage scheme, its subsidiary MIELprovides standard factory buildings for rental and purchase specificallyby small and medium enterprises (see Section 6 below).

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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 fullyBumiputra-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 eventuallyfinancing of their projects. This integrated program thus supportspotential 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 SSEswhich can afford strictly commercial terms and have the required equity

resources for project implementation. While, slightly softer terms andconditions apply to projects assisted by MIDF's Bumiputra Division, suchprojects have a limited impact on the SSE sector, as MIDF services are

restricted to manufacturing and the number of projects and total amountsextended 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%.

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Bumiputra (7.5%) J1 employed a total staff of 221 (including 50 branchoffice personnel), 130 of whom were professionals.L| BPMB aligns itselfwith the Government's development strategy and is one of the instruments forimplementing the economic and social objectives of the New Economic Policy.More specifically, BPMB is fully committed to encouraging and assistingMalays and other indigenous people in identifying, initiating, developingand implementing business ventures through the various stages of anenterprise with the principal objective of increasing and acceleratingtheir active participation in the industrial and other business sectors ofthe economy.

Programs

2.11 In pursuance of above stated objectives, BPMB offers the followingprograms:

(a) financial assistance to Bumiputras to start, expand and revitalizebusinesses 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 eventualtransfer to Bumiputra investors;

(c) assistance in adapting imported technologies and in developinglocal ones;

(d) identification, promotion, implementation and management ofprojects for Bumiputras; and

(e) assistance in the creation of a Bumiputra commercial andindustrial community through upgrading of skills with particularfocus on small and medium-size operations.

2.12 BPMB's facilities are reserved for Bumiputra-controlledbusinesses, which are defined as those ventures in which Bumiputras hold atleast 51% of the share capital, which are actively managed by Bumiputras andin which the majority of staff are Bumiputras. Businesses in themanufacturing sector and in almost all other sectors including commerce andtransportation qualify for BPMB's assistance. BPMB's definition of smallprojects deviates from Bank Negara's definition, and focusses on loans not

!1 Bank Bumiputra is Malaysia's largest commercial bank. Its share capitalis 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.

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exceeding M$300,000 for enterprises with fixed assets, including land, oi upto M$1,000,000, whose equity and number of workers do not exceed M$250,000and 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 offixed assets such as land, buildings and machinery;

(b) working capital financing either as a component of a fiinancialpackage or as a separate facility;

(c) equity financing thus normally limited to 30% of the borrowersshare capital;

(d) loans to individual Bumiputras for the acquisition of shares oifcompanies where the borrower is employed;

(e) loans to cooperatives or individuals, who are not employed by thecompany whose share they want to purchase, but who are offeredattractive 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 equipmentloans, extended by suppli'ers or other financial institutions;]Iand

(i) pre- and post-implementation advisory and management services asa part of BPMB's integrated approach which comprises frequentfollow-up visits during the disbursement phase of the loans andquarterly visits thereafter. However, projects which developserious operational probl'ems are subject to more intensiveadvisory and rehabilitation efforts, including direct marketingassistance through BPMB's Sales Unit.

Terms and Conditions

2.14 As a rule, BPMB does not extend financing below 11$50,000 andM$30,000 for fixed investment and working capital :Loans respectiLvely, but iswilling to make exceptions if the need arises. On the whole BPMIB applies

11 Criteria, limits and collateral requirements are similar to those forloan financing. BPMB charges a guarantee fee of 1/8 to 1/4 of 1% p.a.

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its conditions in a fairly flexible manner to accommodate projects whichrequire special treatment:

(a) Capital_eariAg. BPMB principally aims at developing projectswith a 1:1 debt/equity ratio, but is prepared to deviate from thisideal 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 (cashflow) and by the normal life span of the assets. The grace perioddepends on the merits of each case.

(c) Interest Rate. BPMB relates its interest rate of currentlybetween 8.5% and 10% to the prevailing market rates, type offinancing and nature of project. The interest rate remains fixedthroughout the loan period. BPMB also charges a commitment fee of1/2% on amounts not drawn down in accordance with the disbursementschedule. If the borrower fails to withdraw the approved loanamount or a portion thereof, a 3% fee is levied.

(d) 5eguritvyRequirements. BPMB requests borrowers to providesufficient collateral and accepts, as a rule, only first chargeson fixed assets at maximum margins of 75% for machinery, 80% forbuildings, 90% for land and 100% for life insurances (surrendervalue). Other collateral is also accepted.

New Work'g2in apita Loan Scheme

2.15 In 1979 BPMB introduced working capital loan financing. This newfacility, aimed at providing a comprehensive financial package allowsborrowers to obtain short- and long-term financing, thus relieving them ofthe need to approach more than one bank for full project financing. Thisscheme was made possible through special funds from Bank Negara. Theresponse to the new facility has been encouraging and BPMB has so far (June1981) 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 atM$317 million for 791 operations, comprising M$239 million (539 operations)of fixed asset financing, M$69 million (215 operations) of working capitalfinancing, M$6.5 million of share financing loans (41 operations) and M$2.4million for 3 leasing operations. BPMB's loans were largely channelled toprojects in the industrial and transportation sectors, of which the latteraccounted for around 25% and 12%, respectively, in terms of number andamount. 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 ofBPMB's cumulative loan approvals. As in earlier years, small loans notexceeding M$300,000 still constitute the bulk of BPMB's portfolio,

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accounting for 76.4% by number and 20.9% by amount of BPMB cumulativeapprovals as of June 30, 1981.

Prpject;ions

2.17 BPMB expects a significant increase in the number and volume oiEits operations for the 1981-85 period. Total projected lending operationsof M$752 million include M$604 million for fixed asset 1,282 individualloans) and M$93 million for workingt capital financiing (406 loans). Smal:Lentrepreneurs are expected to account for 70% and 20% by number and amountof fixed asset and for 84% and 23% by number and amount of working capitalfinancing. In addition, BPMB intends to spend M$12 million on itsentrepreneurial development program.

Outlook

2.18 Although BPMB is still a small institute, it has grown into anefficient and mature intermediary for development financing. Despite thelack of a particular SSE focus, about 76.4% of its loans (by number) hasbeen extended to small enterprises in the various sectors. RejecCtions forreasons other than nonviability appear rare and BPMB applies its instrumentswith the necessary flexibility to accommodate those borrowers who cannotprovide enough collateral or who are short of equity funds. To help thelatter in particular, BPMB has recently launched a venture capital scheme.Feasibility and viability are BPMB's overriding criteria for projectapproval. This flexibility has not: led to a high rate of arrears.!1In addition to financing, BPMB also provides prefinancing assistance such asproject identification and entrepreneurial developrment, and postfinancingservices such as follow-up and extension services for less advancedentrepreneurs. These services are packaged if required as part of BPMB'sintegrated approach.

2.19 BPMB's operational scope has so far been limited by shortage oEexperienced staff, which can gradually be overcome, and by resource con-straints. So far only M$300 million has been allocated in the governmenlbudget for the 1981-85 period, about M$200 million short of BPMB's estimatedrequirements. To take on the task of an expanded SSE program, 13PMB wouldrequire additional resources. In t:his context, BPMfB should be encouraged totake the initiative in raising resources, independent of, and in additionto, the budget allocations. Lacking a specific SSE focus, BPMB's SSEassistance has generally been limited to enterprises at the larger end ofthe SSE spectrum. Its recently instituted a venture capital scheme which,if vigorously implemented, would certainly help the less-advanCed SSEs to bebrought 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.

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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

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(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) havedominated approvals, accounting for 64% by number and 73% by amount,followed by agriculture (30% by number and 18% by amount) and manufacturingindustry (6% and 9%, respectively) for building materials, food products,furniture and timber-based products, etc. The bulk of all loans guaranteedby CGC was below M$30,000; they accounted for 94% and 69% of the total interms of number and amount respectively (end-1980). Loans betweenM$30,000-100,000 accounted for 5% by number and 27% by amount, while loansfrom 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 bythe end of 1980, accounting for 2.3% by number and 1% by amount of totalguaranteed loans outstanding. Outstanding claims exceeded CGC's paid-upcapital of M$2.56 million. Total settlements amounted to M$152,000 in 1980for 59 loans as against M$27,000 in 1979 for 6 loans. Under the schememember banks are also required to report regularly all doubtful accountswhich may become future claims if the accounts prove uncollectable. Theaggregate amount so reported to CGC, amounted to M$41 million orapproximately 12% of the total value of guaranteed loans outstanding at theend 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 loansoutstanding at the end of 1980 to small enterprises, from which 5% of totalloans outstanding must be for loans under CGC's SLS. The deadline forcompliance was December 31. The i-nitial response to the SLS has beenencouraging and by June 1981 CGC had received nearly 1,000 guarianteeapplications for loans amounting to M$19 million. The bulk of these loanswas 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 foraround 10% of all outstanding loans from commercial banks to smallbusinessess. Commercial banks have so far only been able to provide a smallpart of the total financial requirements of small businesses, not coveringthose cases which could not supply the necessary collateral. CGC wascreated to fill this gap and there is plenty of sciope for its expanded rolein the future. However, to achieve this the following issue must beaddressed.

/1 Gross approvals before transfers out of the scheme and cancellationsamounted to $862 million for /8,884 loans.

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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

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long-term financing for the entire spectrum of agricultural activitiesincluding 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 unitslocated throughout the country. Credit operations have grown at 43% p.a.,with loan approvals increasing from M$17.4 million in 1974 to M$152.0million in 1980. BPM has also been highly successful in mobilizing depositswhich 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 totalassets of M$635 million, of which M$130 million and M$446 million wereinvested in loans and mainly short-term securities, were financed by timedeposits (M$506 million), government loans (M$50 million), equity (M$41million) and other funds (M$38 million). Arrears accounted for 26.4% ofBPM's total portfolio at the end of 1978.

Agribusiness and SSE Operations

2.33 Agribusiness financing has been BPM's third largest activity. Atthe end of 1980, over 870 agribusiness projects absorbed almost M$55million, accounting for 4% and 8% in terms of number and amount of BPM'stotal 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 thetotal number. Loans above M$100,000 made up only 6% of total approvals, butaccounted for 84% by amount. For agribusiness loans, BPM has budgettedM$117 million for the 1981-85 period out of the total projected commitmentsof M$792 million.

2.34 BPM's definition of agribusiness loans is very flexible andcomprises, according to its special agribusiness loan policy, all projectsthat are dependent on farms as a major market for their products or as amajor source of their raw material inputs. While this policy does notestablish any size criteria, "large loans" should not in aggregate exceedBPM's capital and should also not exceed 6% of the capital in eachindividual case. For agribusiness loans, BPM's interest rates in principlerange from the current prime rate of 8.5% to 4.5% above the prime, though10-14% 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% cifproject costs. Although these terms do not sound conducive to SSEfinancing, BPM is flexible with viable projects, whose sponsors wouldnormally 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 operationsrather than business or manufacturing operations./1 Hence, the number of

/1 No subsectoral breakdown of agribusiness commitments was available.

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projects other than those in agriculture have most likely not had any majorimpact on small enterprises in other sectors. This is not unusual in viewof BPM's agricultural orientation. BPM has nevertheless a good basis forexpanding SSE financing within the context of its agribusiness activity,since it is development-oriented and applies terms and conditions in aflexible way. On the other hand, it is constrained by its staff who havemainly agricultural background and may not be well suited to operations inother sectors. These limitations could be overcome if BPM created specialAgribusiness Units at Headquarters and branch offices, and recruited staffwith the necessary backgrounds to assist agribusiness operations which arenot purely agricultural. BPM's agribusiness should also qualify for CGC'sguarantee coverage as this would improve access of small clients with viableprojects but insufficient collateral. At the Government's request, BPMintroduced in January 1981 two new loan categories which are directly aimedat eliminating poverty and at restructuring society. Loans in the firstcategories, which also include agribusiness loans up to M$30,000, areextended at zero interest rates. The second category, which covers loans upto M$50,000 for all agricultural activities including agribusiness, arecurrently extended at 2% to borrowers irrespective of their poverty levels.BPM will be compensated for its loan administration costs through governmentgrants. BPM anticipates that both categories will account for about 70% ofits total projected lending volume during the 1981-85 period. In the lightof this new approach, it appears doubtful that BPM can play a more dynamicrole 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, theRural and Industrial Development Authority (RIDA). MARA's principalobjective is to motivate, guide, train and assist Bumiputras, particularlythose in rural areas, to enable them to participate more actively incommercial and industrial activities. This objective comprises thedevelopment of entrepreneurship among Bumiputras, increased Bumiputraownership in equity capital and a greater share in employment at variouslevels of business. Guided by this objective, MARA implements, in line withthe 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 aswell 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 PublicEnterprises.

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3,000. MARA's assistance, with financing not in excess of M$'50,OOO, isgenerally aimed at entrepreneurs with little or rio previous businessexposure. It considers manufacturing enterprises as small when fixed assetsexcluding land are not in excess of M$250,000, regardless of the number ofworkers, and where the owner performs a wide range of functions. Forenterprises other than those in manufacturing to be qualified as small,their capital funds and turnover should not exceed M$50,000 and M$1,000,000respectively.

Integrated Approach

2.38 MARA's assistance programs, covering training, entrepreneurialdevelopment, business premises development and financing are interrelatedand MARA adopts an integrated strategy, focussed towards developing a viableBumiputra business community. This approach comprises the identificat:ionand selection of potential entrepreneurs, the promotion of separatelyidentified business opportunities and the financi.ng and counseling ofsuccessfully trained candidates until they are able to manage and operatetheir 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 MARAOfficer, who is responsible for executing and implementing MARA's programsin the state. MARA currently employs some 740 staff (144 at headquartersand 596 at branch level) to administer the Entrepreneur Development Programs(EDPs) of whom a majority are loan officers and around 87 are extensionofficers who assist borrowers in project implementation. Under its EDPsMARA finances both existing and new entrepreneurs, but limits its loans toM$50,000. MARA's credit facilities cover a broacl spectrum of commercial andindustrial activities except agriculture, animal husbandry and fishery; theycomprise the following programs:

(a) working capital financijg with a duration not exceecling 5 yearstor general business purposes, and for the purchase of stocks,office equipment and supplies;

(b) fixed assets financing with a duration not exceeding 5 years torthe construction of workshops and for the purchase of machineryand equipment;

(c) business car loans with maturities of between 3 to 5 years and adown-payment by the borrower of at least 10% for new vehicles and33% for second-hand cars;

(d) contractor loans provicling the necessary, working capital torsupplies and general purposes with maturities determined by theduration of the contract; and

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(e) loans for professionals for the establishment of their firms,covering the acquisition of office equipment, inventories andworking capital.

For new entrepreneurs MARA also operates a soft loan scheme for amounts upto M$50,000 with extended maturities up to 10 years. Under this scheme,priority is given to projects in manufacturing and worker workshops. In1980 MARA also introduced a term loan scheme for petty operators (e.g.,haulers, stall owners, trisha drivers), to finance the acquisition ofequipment; 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 toM$5,000 and 7% for loans above M$5,000. Applications for loans in excess ofM$50,000 are forwarded to other specialized institutions such as BPM, BPMBand MIDF or to commercial banks. In extending its credit facilities, MARAtakes an approach similar to that of other development banks, focussing onthe viability of the project rather than on collateral. For its standardloan programs, MARA nevertheless requests borrowers to contribute 10% equityfunds and to provide collateral in the form of machinery, land and twoguarantors with reasonable earning capacity. MARA's development orientationand social objective, however, call for exceptions from this guideline toaccommodate those borrowers who have viable projects but insufficientcollateral and equity funds.

Loan Operations

2.41 During the 1976-79 period, MARA approved an average of 3,600 loansannually, until the loan program for petty traders and other operators wasintroduced in 1980. As a consequence, loan approvals in 1980 have increasedthreefold to 11,500 loans, including some 9,000 petty loans /1. The annualvolume has also grown substantially from M$11.8 million in 1976 to M$60.4million in 1980, resulting in an increase of the average loan amountapproved from around M$3,500 in 1976 to some M$17,000 in 1980./2 MARA'stotal loan portfolio as of March 31, 1981 stood at M$121.8 million for32,800 loans, including approximately 15,000 petty loans. Loans to thetrading sector have increased from M$8.5 million for 1,982 loans in 1979 toM$19.2 million for 7,187 loans in 1980 mainly due to the introduction of thepetty loan scheme. The trading sector accounts for 33% by amount and 63% bynumber of total approval, followed by the construction sector with 30% and12%, transportation with 23% and 7%, manufacturing with 8% and 11% and otherservices with 6% and 7%, respectively. Transportation projects had thelargest average loan amount of around M$16,000, followed by constructionprojects M$13,000 and manufacturing projects only M$3,700. During the

/1 As of December 31, 1980, MARA had received 16,000 applications forpetty loans, of which 2,400, amounting to M$5 million, had so far beenrejected.

/2 Including around M$17 million for loans under the petty loan scheme.

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1981-85 period, MARA expects to approve a total of M$121 million for around35,000 projects, including M$50 million (1,500 projects) under itsentrepreneurial development scheme.

Operational Constraints to Manufacturing SSI Financing

2.42 The trading, construction and transportation sectors absorbed thebulk of MARA's financial assistance, and manufacturing loans accounted forslightly less than 10% during the 1976-80 period. Given the closecorrelation between loan size, which amounted to some M$3,700 in 1980, andsize of enterprise, MARA has apparently covered mostly small, cottage-typeoperations in rural areas. In its manufacturing operations, MARA appears tobe constrained by the maximum loan limit of M$50,000. As such it cannotassist projects whose entrepreneurs have just overcome the rudimentary stageof entrepreneurship. According to MARA, however, such projects cannotsustain their perforance without MARA's continuied assistance. To ensure amore meaningful impact on manufacturing, MARA's maximum loan amount shouldbe raised to around M$250,000 especially in view of the larger requirementsfor the acquisition of land, buildings, machinery and stocks. MARA is alsoseriously constrained in assisting manufacturing projects by its severeshortage of experienced extension workers. A large portion of its 16,000loans (excluding those under the petty loan scheme), may require technicalassistance, and MARA's 87 extension staff faces an almost insurmountabletask. Regular visits and intensive counseling, however, would raise thenumber of successful operations and, at the same time, reduce MARA's veryhigh rate of arrears.

6. The Malaysian Industrial Estates Sendirian Berha,d (MIEL)

Background

2.43 The Malaysia Industrial Estates Sendirian Berhad (14IEL) wasestablished in 1964 as a fully-owned subsidiary of MIDF, with the objectiveof constructing modern factory bouildings for sale and lease to small- andmedium-scale entrepreneurs. For this purpose MLEL normally acquires part ofthe land in industrial estates or in free trade zones, develops theinfrastructure, constructs the factory building and cooperatess with therespective municipal authorities. To relocate small and medium industriesaway from the crowded town areas, and to foster their growth in a lessconstrained environment, MIEL also launched in FY80/81 a factory relocationprogram. MIEL employed 25 staff including 12 professionals in 1981.

Relevance for SSE Financing

2.44 MIEL tocusses on the construction of factory buildings within thereach of small- and medium-scale enterprises. While some of these buildingsare sold for cash, MIEL also op(erates a factory mortgage scheme. Under thisscheme, it provides financing with maturities of between 10-14 yearsincluding grace periods for the acquisition of ifactory buildings. Borrowersare expected to contribute betwesen 20-30% from their own resources, except

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for Bumiputras whose down-payment need not exceed 10%. For its mortgagefinancing MIEL currently charges fixed interest rates of 8.5% fromBumiputras and 10% from others.

Operational Performance

2.45 As of the end of March 1981, MIEL had constructed factorybuildings in 19 locations throughout Malaysia, with particular emphasis onlow-cost factory buildings in the less developed areas. To construct thesebuildings, MIEL has invested M$69.5 million, resulting in an average valueof around M$130,000 per factory building. This amount compares with themost recent average value of M$198,000. During its 17 years of operation,MIEL recorded the establishment of 352 industrial projects with anincremental 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 parentcompany, 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 yearsand interest rates from 6%-8%. MIEL-s financial structure and performancehave 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 ofthe Ministry of Culture, Youth and Sports (MCYS) is engaged in a program tomotivate, train and finance disadvantaged youth and to set them up inbusiness. Participants in the program are encouraged to venture intobusiness after they have obtained motivational and vocational training andhave gained some 4-5 years of work experience. About 22% of the 5,740candidates who have participated in the vocational training program have sofar set up their own businesses. MCYS provides collateral-free loanfinancing up to M$30,000 but expects borrowers to finance part of theproject cost from their own funds. MCYS loans do not carry any interestrate, but a 2% service charge is added on to the loan amount. After a graceperiod of six months, borrowers are required to start repaying of the loanout of their profits. In addition to loan financing, MCYS also providesextension services to assist the newly established enterprises. It hasfinanced 636 projects during the 1976-80 period. The average loan amountwas around M$14,500. In addition to this scheme, MCYS also operates alending program for petty traders and retailers under which it has extendedanother 640 loans during the 1978-80 period with an average loan amount ofabout M$1,400. Both programs have so far had 770 failures for which theloans have had to be written off. M$24 million has been allocated under theFourth Malaysia Plan (1981-85) for MCYS's small business loan program.

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MCYS's financial support and technical assistance programs for disadvantagedyouth appear to overlap with those of MARA. It, therefore, appearsappropriate to merge MCYS financial and technical assistance functions withMARA's programs to avoid costly duplication. Youth inclined to go intobusiness, who have undertaken MCYS's motivational and vocational trainingand have gained the necessary work experience, could be referred to MARA forfinancing under a comparable program.

2.48 The Kedah SSE Development Scheme. The Government has recentlylaunched a development program for SSEs in Malaysia's State of Kedah toreduce migration and poverty in rural areas by absorbing labor displaced byfarm mechanization. Participants will receive motivational and practicaltraining at the program sponsor's own production facilities. After theirskills have been sufficiently developed and they are considered ready toconduct business independently, participants will be encouraged to operatetheir own production units/enterprises. The program is based on the conceptof using local raw materials such as rattan, clay and wood. Instructionwill be given in operating intermediate-technology-level machinery toreplace artisan and handicraft practices.

2.49 A Management Company (MC) has recently been set up by theGovernment to operate the SSE development program. This company, which hasbeen established under the Companies Act, is controlled by the Kedah StateDevelopment Corporation. Its Board of Directors includes the Mentri Besar(Minister of the State) and several other state officials. MC's majorfunctions comprise the motivation and training of potential entrepreneurs inits own production units, several of which are in the process of beingestablished and equipped with machinery and materials. MC is prepared toturn these production units over to the participants or assist them inestablishing their own units/enterprises (perhaps on a turn-key basis), whenthey have gained the necessary experience. In this context, MC also intendsto restructure those villages where it establishes production units toensure efficient operations.

2.50 Marketing and technical assistance will be provided as anintegral part of the program by two large foreign firms in the ceramics andwood products sectors. While their participation is on an experimentalbasis, they are genuinely interested in establishing subcontractors whowould supply the necessary products to meet overseas demand. In addition totraining and technical assistance, they are also prepared to ensure thattheir subcontractors apply sound production practices and quality controlmeasures which would allow them gradually to increase the size of theircontracts for the participating SSEs. MC is confident that its partnershipcan be expanded beyond these two firms, to increase the program's impact interms of product range and SSE participation. Around M$307 million has beenearmarked 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 coverMC's expenditure. After about five years, however, MC is expected tcogenerate enough income from its intermediary services to cover its cost.

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ANNEX III. MAJOR PROGRAMS OF TECHNICAL ASSISTANCE TO SMALL-SCALEENTERPRISES

1. Majlis Amanah Rakyut (MARA)

3.01 MARA provides an integrated program of financial assistance, grouptraining, advisory and counseling services, improvement of business sites.and project feasibility, market and sectoral studies. It has the largestand most comprehensive technical assistance (TA) staff and program inMalaysia. It maintains offices in every state and administrative districtof the country. The Entrepreneurial Development Division (EDD) was createdin 1979 by merging its Loan, Enterprise Development, and Advisory ServicesDivisions to bring these services together in order to provide bumiputrawith an integrated "one stop" service. A total of 650 personnel including200 loan officers, 50 senior extension officers with specialized expertisework at the state level, and about 400 training and advisory officers areassiged to MARA's 52 district officers.

Entrepreneur Training

3.02 From 1970 to 1975 about 250 training courses with 9,831participants were held. During 1976 to 1980 period this effort increased to953 courses with 33,381 individuals in attendance. MARA is further steppingup this effort in 1981 to 1985 with a goal of 1,202 courses for 43,212potential and existing entrepreneurs. Current training programs includepreliminary seminars to select entrepreeneurs followed by a Trade andIndustrial Preparation (TIP) course, and a variety of management, finance,marketing, construction and sectoral courses. In 1979, 35% of 155graduates of the TIP course who were followed up established their ownbusinesses.

Advisory Services

3.03 MARA's extension officers are engaged in providing a broadspectrum of advisory services including all business formation and start-upmatters; and on the functional areas of operation such as accounting andfinance, engineering and production, sales and marketing, general managementand secretaryship. Table Al provides perspective on the type of advisoryhelp which was provided to an estimated 5,900 clients during recent years.Although MARA has the largest officer staff in Malaysia with knowledge ofall of the functional areas of business and some sectoral expertise, thereis an occasional need for specialized consulting talent. MARA has budgetedM$1,000,000 for the 1981-85 period to engage professional consultants tosupplement its staff where necessary. While MARA indicates that there is"very little interaction between officers in the public sector," it doesturn to SIRIM and other agencies for specialized technical help.

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Table Al: ADVISORY SERVICES PROVIDED BY MARA, 1974-80 (June)

1980Subject 1974 1975, 1976 1977 1978 1979 (June) Total

Accounting 748 752 380 338 580 631 585 4,014

Carpentry (woodproducts) 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 MARAreassumed a substantial part of its client. training to improveresults. MARA will continue to use MIDFIC, SIRIM, and otherorganizations for specialized training work.

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Limitations and Needs

3.04 MARA has expressed the need for added services for bumiputra andit has noted limitations of its TA program that should be addressed:

(a) Technological. MARA has not been able to obtain adequatetechnological support from outside sources, and it does not havesufficient internal resources to satisfy the needs of SSEdevelopment. Adequate appropriate technology is not available.MARA has indicated a "need to set up a technological center to beset up dealing with the latest technological developments." It isMARA's position that a computer is needed to store and disseminatethis information./l

(b) Marketing. MARA indicates that inadequate marketing facilitiesand channels for manufacturing SSIs exist. It has proposed thatmarketing and trade arrangements be established for SSI; and that"trade commissions abroad should have separate units for smallscale products." MARA has contracted to provide bread and militaryuniforms to the government; and it has distributed subcontractsamong SSIs. It indicates that a better system for allocatinggovernment purchases to SSE is needed. MARA advocates thepromotion of subcontracting to SSI "by giving tax rebates to thelarger industries that subcontract a greater proportion of thevalue added to small scale units."

(c) Extension Officers. A number of MARA extension officers areinexperienced and inadequately trained. As a result, they lackcredibility with entrepreneurs. Pay is too low and staff turnoveris high. In order to try to overcome this problem, MARA hasallocated M$4,752,000 for a staff training center during the 1981to 1985 period./2 In addition, MARA has stated "officersspecialized 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 themission that this need should be met by placing an in-house computerfacility for technology storage and dissemination in SIRIM and thatSIRIM's extension staff be strengthened to link that information centerto the field.

/2 Extension officer deficiencies are a very serious problem among all ofthe agencies which are providing TA. The overall problem may be bestaddressed by establishing a centralized extension officer trainingcenter to meet the needs of several government agencies. On individualbasis these various programs would not be as cost-effective as thoseorganized and executed on a collective basis.

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(d) Evaluation. Adequate methods for the evaluation of MARA's TAefforts need to be developed. Currently quantitative measurementsof services rendered are utilized; but little is attempted of aqualitative nature./l

2. National P'roductivity Center (NPC)

3.05 The National Productivity Center (NPC) was established in 1962 asa joint project of the United Nations (special fund) and the MalaysianGovernment. In 1966 the Parliament passed the National Productivity CouncilAct and the Council became an autonomous body. I'he members of the councilare appointed by the Minister of Trade and Industry and the council appointsa Director to head the NPC. The Director has a deputy director who is incharge of training and another who is responsible for NPC's consultancywork. NPC's technical assistance efforts for SSEs have been centered ontraining. During recent years, it has determined that training is not veryeffective without follow-up with on-site consultancy. Thus, NPCcontemplates a much larger, more comprehensive consultancy program for SSEin 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 sectoralspecialization, most of NPC's training work has been done with itsEntrepreneur Development Program I (EPD-I.) This course, whic:h requiredfull time attendance over a two week period is di.vided into the followingcomponents:

Topic Days

Motivation 2Sales & Marketing 3Accounting 3Project Preparation 3

EDP-I is taught in Bahasa, Chinese and English and it is offered by NPC'sfive regional offices. About 85,010 of the participants have been bumiputraand 80% of them were interested :in retail trade. Participants are providedby sponsoring agencies such as MARA, MCYSYD, and BPMB. Most sponsoring

/1 Again, this is a universal problem among agencies that are orovidingTA. A common system which w:ill allow comparable measurements is nieeded.

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agencies pay most of the M$465 fee.Il Table A2 provides an overview ofEDP-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 concernedabout this trend. It has instituted some changes in the course; and itanticipates 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-dayworkshops for a fee of M$10 per person. Two or three of these workshops areplanned for each month.

Consultancy - Extension Work

3.07 Prior to the Third Malaysian Plan (1976-1980) NPC was engaged onlyin training. During 1976-1980 period, the follow-up extension officer staffwas created. NPC divides its extension work into advisory services whichaverage about 3 man hours and into consultancy work which may take as muchas several hours a week for two to three or more months to complete. Thereare 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 majorconsultancy project. Two hundred thirty-nine advisory services wererendered in 1977 and 1,001 were provided in 1978. Fifty-one consultancyprojects were undertaken during 1976-80. Every participant of NPC's EDPtraining programs is followed up. There is no charge for follow-up work.If no potential for growth or establishing a business is apparent, thefollow-up is terminated after two visits. In July 1981, NPC initiated a 36month follow-up program. This is an extensive program and involves anexamination of an entrepreneur's entire accounting and record systems,instructions in financial management, assistance in project studies andpreparing loan papers, and all the monitoring of the dispersal and use ofthe loan proceeds. During the next five years, NPC expects to train 10,000existing and potential entrepreneurs. It plans to upgrade 900 of theparticipating existing businesses from that group, and expects to create 700new entrepreneurs. If this follow-up program is implemented, it will entaila massive amount of extension work.

Other Services for SSE

3.08 In addition to standard follow-up and consultancy services, NPCprovides a Management Research Information Service which furnishes informa-tion such as potential export business to SSE, the type and quantity ofproducts manufactured in Malaysia, and a wide variety of other information.At present, NPC is developing an Entrepreneur Information Center which willhave an extensive data bank, including studies on business sectors.

/1 NPC plans to provide special EPDs which are sectorally oriented forthose sponsored by the Development Bank and MARA. These will be heldduring the evenings. The clients will pay half of the M$500 fee.

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Table A2: NPC's ENTREPRENE1JR DEVELOPMENT PROGRAM I, 1976-80

1976 1977 1978 1979 1980/a TotalNo. % 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

Prospectiveentrepreneurs 455 69 1,862 61 1,934 67 1,757 68 1,655 71 7,663 67

Entrepreneurscreated (fromprospectiveentrepreneurs) 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 toexceed 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 1980component 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

Projectpaper 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.

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Budget

3.09 The NPC budget for 1982 will be M$10 mil:Lion, of whichapproximately M$5 million will be utilized for EDP. As noted earlier, asubstantial charge is made for the bulk of the training work (ED)P-I) whichhas brought in significant funds, and token charges are levied for majorconsultancy work. Originally it wcls planned that NPC would receivegovernment financial support until it became self-supporting./l

Training-Consultancy Staff

3.10 NPC currently has 35 training officer positions, of which 27 arefilled. The consultancy division has positions for 50 extension officerswith 32 filled. A majority of the extension officers are located atheadquarters. The geographic dispersion of field extension off:Lcers (whoare also engaged in training) follows:

Table A4: NUMBER OF FIELD EXTENSION OFFICERS IN NPC

Positions Positions filledRegional office allocated October ]L981

Penang 3 2Johor Baharu 2 1Kuantan 4 3Kuehing, Sarawak 3 1Kota Kinabalu, Sabah 3 2

Total 15 9

NPC wants to add field offices in Kota Bharu, Kelantan and the state of Kedain 1982. Meantime, a decision has been reached to transfer all of the fieldextension officers back to headquarters and to handle all consulting workfrom the central office in order to overcome some of the inadequacies of thepresent staff. The field offices will continue to do training but they willnot do consultancy work in 1982. Current limitations of the presentextension officers can be placed in perspective by noting that iLt isnecessary to assign two or three of'ficers to each consulting case to help tomake up for their inexperience and limitations. This, coupled with the staffsize and post vacancies, limit the volume of extension work that: can beeffectively accomplished. Most of the training and extension officers havehonor degrees, (one year of academic work beyond a general degree) in

/1 With a substantial inter-agency government funds transfer takingplace between sponsoring agencies and NPC, the likelihood of' NPCbecoming self-supporting from non-government ftnds sources iLs little.

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economics and the sciences. NPC plans to employ more engineers and theyexpect to add on an economist as a project director, two retail tradespecialists, and one each of the following specialists: woodworking, autorepair, electrical-electronic and food specialists. A total of about 100training and extension officers, many of which will have expertise in givenindustries, will be added during the next two years. Turnover amongextension officers has been high but currently it has been reduced to about10%. The pay level of ordinary officers was increased from about M$850 permonth 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 owntraining and consultancy staff, NPC has foreign specialists to augment itspersonnel. During the 1980- 1983 period, the German government is providing240 man-months of specialized help.

3.11 NPC has devised a series of four short Courses for DevelopmentOfficers (CDO) to strengthen its present training and extension officerstaff. These four courses, which wil require a total of 60 days tocomplete, will be spread over one year. In July 1981, NPC announced afive-year "Officer Training and Development Scheme" to address the problemof inadequate extension officers. During the initial years, formal trainingby the NPC staff and specialists from universities will be supplemented bystudy tours. Officers will work as well as study during this period. Anopportunity to study for Masters and PhD degrees will be a part of theadvanced stage of the program. A progressive career advancement path isplanned to go through the stages of trainer consultant, researcher,information giver, communicator and promoter to administrator. An annualbudget of M$569,500 has been projected for the extension officer trainingprogram.

Limitations and Needs

3.12 The inadequacies and turnover of the extension officer staff aremajor 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 byother agencies. The proportion of entrepreneurs "created" during recentyears has been declining. NPC is aware of this matter and is developingscreening methods. Finally, the design of the three-year " follow-up"program, adopted in July 1981, seems to be a supply side aproach to provideconsultancy services. Although there is room in the NPC program fordeviation from the plan, the consultancy needs of entrepreneurs vary sogreatly that extension officers given a patterned approach may attempt toapply it to the extent that some problems are given too little attention andothers are given too much. Without practical experience to provideperspective, the approach may become overly pedantic.

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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. Thesebusinesses tend to be very small with a heavy concentration on petty tradingand retailing (61%), followed by services (31%), small industry (6%) andagro-based industry (2%). During the 1978-80 period loans were made byMCYSYD schools. After 4 to 5 years working experience, these entrepreneursmay be sent to NPC-s EDP-I. Most MCYSYD entrepreneurs start in business atage 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% servicecharge 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 1976-80period 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 andsectoral breakdown of the types of business which were created by the MCYSYDthrough its youth in business program. During th,e Fourth Malaysia Plan M$24million has been allocated by MCYSYD for small business loans. Korbena, aNational Youth Cooperative, sponsored by the Ministry and controlled by aboard which is partly appointed by the Ministry and partly elected by theyouth organizations, serves as a buying agency for the machinery of newenterprises.

Extension Worker Staff

3.14 There are 36 extension workers who provide consultancy to existingand potential entrepreneurs. In addition, 112 diistrict officers providehelp to entrepreneurs as a part of their overall work. Ten senior levelextension officers are located at the headquarters. Each of t!hese isassigned two or threestates. Two of the remaining 26 extension officers areassigned to each of the individuaL states. The state extension officers areengaged in both loan collection and counseling work. They wor'k with clientson preparing project papers, help to process the Ministry-s loans or aid theclient in getting a MARA or commeircial bank loan. They also work with MARAand UDA in obtaiing business premises for clients. The field extensionofficers and district officers occasionally call on MARA extension officersfor help, especially when a client wants to expand. The Federal MarketingAuthority-s field workers provide marketing assisitance with agro-basedproducts. Local and state author:Lties are called on for licensing help andfor aid with getting sites approved. Although MCYSYD has lost 4 of its 10senior extension officers and 3 of its 26 state extension officers duringthe last 2 years, (mostly to better government positions), turnover has not,in their view, been excessive.

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Table A5: GEOGRAPHIC AND SECTORAL DISPERSION OF NEW ENTERPRISESESTABLISHED UNDER THE YOUTH IN BUSINESS PROGRAM, 1976-80/a

EnterprisesSmall Agro-based

Services Retail industry industry Total No. of No. of AmountProj- 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 331Kedah 39 59.1 10 15.2 14 21.2 3 4.5 66 75 210 848Pulau Pinang 26 59.1 6 13.6 9 20.5 3 6.8 44 65 148 652Perak 24 52.2 14 30.4 5 10.9 3 6.5 46 63 134 692Selangor 40 75.5 5 9.4 5 9.4 3 5.7 53 86 194 962Wilayah

Persekutuan 17 47.2 15 41.7 4 11.1 - - 36 77 167 906Negeri

Sembilan 16 45.7 9 25.7 7 20.0 3 8.6 35 38 128 566Melaka 23 74.2 3 9.7 5 16.1 - - 31 34 105 495Johor 40 66.7 10 16.6 6 10.0 4 6.7 60 68 224 855Pahang 30 68.2 9 20.4 4 9.1 1 2.3 44 54 119 623Trengganu 39 62.9 14 22.6 9 14.5 - - 62 72 171 751Kelantan 59 79.7 6 8.1 6 8.1 3 4.1 74 86 185 734Sabah 13 72.2 3 16.6 1 5.6 1 5.6 18 21 50 257Sarawak 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 ofbusinesses were financed by external sources of capital.

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Current Developments

3.15 Under the Fourth Malaysia Plan, the Ministry is setting up a YouthEntrepreneur Development Institute (YEDI). A six month business trainingprogram will be provided to teach business skills to those who have finishedvocational school and have some working experience. Tuition, room and boardwill be provided without charge. The first group of students is nowenrolled in this program. In addition to developing entrepreneurs, theMinistry intends to train commercial workers in clerical, typing, andstenographic skills in YEDI. Land has been acquired at a cost of $2 millionand 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 develcpmentprogram: a building for the YEDI (funds are tentatively available); moreextension officers and training for present extension staff; externalconsulting to help to review and develop the SSE development program; andfeasibility studies to help determine appropriate new areas of businessenterprises that should be developed.

4. Malaysian Entrepreneurial Development Center (MEDEC)

3.17 The Malaysian Entrepren,eurial Development Center (MEDEC) wasestablished at the MARA Institute of Technology (ITM) in 1975. It wasestablished to produce highly motivated, knowledgable, efficiententrepreneurs. This was to be accomplished through extensive training,research, and follow-up. The most important aspect of MEDEC's work is itsEntrepreneurial Development Program (EDP). MEDEC has three forms of EDPcourses. Two of these are basically the same. T'he first EDP, which hasdominated the effort, is a three-month training exercise which meets 5nights 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 oncampus during the course. MEDEC intended to conduct this course twice ayear; 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 inentrepreneurship. It is designed to create an awareness of business oppor-tunities and to develop entrepreneurial characteristics. It provides basicbusiness 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 generalrange of topics as the other EDP's cover, but the motivation and interestaspects are tailored for the student participants. EDP topics include thefollowing: "Roadmap" for setting up business, Project selection, Marketsurvey, Achievement motivation, Accounting, Costing, Finance, Marketing, Loanprocedure, Credit control, Company formation, Preparation of a WorkingPaper, Business game, Guest entrepreneurs, and Small business managemernt.

3.18 MEDEC concentrates only on highly qualified participants for itsEDP programs. The charge for EDP courses is M$350 which is paid by the

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participants, and substantial time is required. Those who do apply arerequired to complete an extensive 14 page admission application which isaccompanied by a non-refundable fee. About half the applicants areinterviewed by a panel which is made up of two bankers and two MEDEC staffmembers. A maximum of 25 applicants are selected for each course. ThroughSeptember 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 thatEDP Number of established potential established businessno. participants entrepreneurs entrepreneurs No. %

1 24 4 20 12 60.02 22 4 18 10 55.63 22 2 20 8 40.04 15 2 13 7 53.95 17 3 14 10 71.46 14 4 10 6 60.07 20 5 15 11 73.38 18 7 11 10 90.99 24 9 14 15 100.010 20 6 14 13 92.911 24 10 14 14 100.0

Total 220 56 164 118 72.0

3.19 Those graduates which formed businesses after participating in EDPselected the following types of businesses:

Types of business started % EDP

Retail trade 34.6Services 28.7Wholesale trade 14.8Construction 11.9Manufacturing 5.0Agri-business 4.0Mining 1.0

Total 100.0

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It will be noted that the percentage of potential entrepreneurs that wentinto business after EDP has been high and increasing. In one sense, theMEDEC achievement is remarkable; however, it must be viewed in its propercontext. The screening process is so thorough that only the most likelycandidates 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 courseparticipants. ITM has campuses in Perlis, Premeganu, Sarawak and Sabah.Faculty on those campuses and who are MEDEC associates do the follow-up onEDP participants in the respective areas. At present the teaching staff inMEDEC has only six members. At one time there were ten faculty members,however, the work is demanding and some instructors left MEDEC for privatesector positions. MEDEC would like to expand to other parts of the country;but the shortages of instructors does not make that practical. It wouldtake two to three years to train instructors for expansion.

Budget

3.21 MEDEC's budget is shown below:

BudgetYear (M$)

1979 369,2001980 242,5001981 617,1191982 505,860

A budget of M$1,600,000 was requested for 1982, but only one third of thatamount was allocated to MEDEC.

Limitations and Needs of MEDEC

3.22 MEDEC would like to expand their work to other ITM campuses. Thefollowing would be required: a larger budget allocation; a larger teachingstaff; overseas training for the teaching staff; and additional audio visualequipment and materials.

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5. Pernas Edar Sdn. Bhd. (PE)

3.23 Pernas Edar (PE) was created in 1974 as a subsidiary of the PernasGroup to aid in the development of bumiputra retail grocers in WestMalaysia. PE is capitalized for M$10 million and is 100% owned by thePernas Group which was founded by Bank Negara. The Pernas Group is underthe Prime Minister's Department. During 1980 PE had sales of M$76 millionand for the first time it made a small profit. Sales are expected to reachM$91 million in 1981 and profits again are expected. The primary functionsof PE are to serve as a primary wholesale supplier to bumiputra groceryretailers; and to suply financial and technical assistance. About 4,000retailers buy from PE on a regular basis and over 4,400 were registered atmid 1981. In addition to serving existing retailers, PE develops newbumiputra entrepreneurs. For example, 73 new traders were established inthe first 7 months of 1981. Among the reasons for establishing PE was tomake good quality merchandise available at competitive wholesale prices tobumiputra retailers. That group had been experiencing difficulty withprices and delivery of goods; and it was very difficult for some who wantedto enter the field to develop supply sources. Currently PE supplies about60% of its client's requirements through 30 wholesale depots on a cash andcarry basis. It is noteworthy that all other efforts by the federal andstate governments to establish viable trading operations of the type inwhich PE is engaged have failed. Part of PE's success can be attributed toefforts of its Chief Executive Officer and to its General Manager both ofwhom joined PE during recent years after successful business careers in theprivate sector. Although PE is a wholesaler, it aids privately ownedbumiputra wholesalers. Help is contingent upon these wholesalers providingquality goods, good service and competitive prices to the retailers.

Training Courses

3.24 PE holds evening seminars and one day training courses for itsretailers. There are no charges for these programs. Two PE staff membersare assigned to this activity. During the January-July 1981 period, 44training courses in merchandising, management and accounting were held for409 participants. In addition 4 open houses were held for clients.

Field Extension Work

3.25 During the January-July 1981 time period, the field officerextension staff worked with 3,006 traders who were under their supervisionin semiurban and rural areas. Extension officers made a total of 8,616visits on those traders. Over half of these clients (1,673) wre under closesupervision to help them advance further or overcome serious problems.Although PE does not make loans, its extension officers aid in projectstudies and loan application preparation for its registered traders. Duringthe January-July 1981 period 233 applications were presented of which 114 or49% had been funded within the following three months. The average value ofthe loans granted was M$6,880. Loans are obtained by clients from

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commercial banks, MARA and the Ministry of Culture, Youth and1 Sports. PEprovides promotional items such as T-shirts, bicycles and a variety ofproducts without charge to some traders to help them attract customers.Considerable effort has been exlpended to upgrade trader shops. PE cancontribute 30-40% of the cost of modernization (up to M$2,000) to groceryretailers who want to participate in this program. Bank Bum:Lputra and MARAprovide loans to finance the balance. PE extension work in peninsulaMalaysia is divided into four zones. A regionaL extension manager overseesthe work in each zone. He is aided in the supervisionn of the extensionofficers by a senior extension officer. There are 52 extension officers, upfrom 42 years ago; but more are needed. PE has experienced dlifficulty inobtaining and keeping good quality extension ofEicers. Their average age is22 to 23 years, so inexperience is a problem. Present trainLng forextension workers is 2-3 weeks. The salary of extension offLcers, isapproximately $700 a month, and they are paid by the Prime MLnister'sDepartment, 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 preparedextension workers are to be engaged and kept. Most of the PE staff aremalay. PE has found that Malay clients respond better to MaLay PE staffmembers. At present PE has no method of ealuating work of ilts extensionofficers.

Limitations and Needs

3.26 The extension officer staff is inexperienced and too small tocarry out its functions effectively. The staff needs to be increased by 50to 75% during the next 2-3 years and better training is needed. Moreover,extension officer turnover is high. Higher pay for better qualifiedpersonnel should improve effectiveness; and it should be a cost-effectivemove. Finally, a system for evaluating the qualitative aspects of PEtraining and extension work is needed.

6. Bank Pembangunan Malaysia Berhad (BPMB)

3.27 BPMB has an aggressive SSE development program. Ilt engages inentrepreneur development, training, lending and consulting. This integratedprogram (FA plus TA) provides for well rounded, efficient development work.Unlike a commercial bank, the loan officers provide a substantial amount ofTA 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 followupwork is done in cooperation with MARA, NPC and MEDEC. NPC held twospecially designed EDP training programs for 50 BPMB selected participantsin February and August 1981, and MEDEC held three EDP courses for 69 BPMBparticipants through August 1981. A ratio of approximately 2 established to1 prospective entrepreneur participated in these training courses. Table A7provides a breakdown of BPMB's EDPs for the 1981-985 period:

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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 byBPMB (with the cooperation ofNPC, 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 byBPMB @ 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 participantsneeding follow-up services from theEDP (in the form of advisory servicesand consultations for the purposes ofplanning & 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 gettingfinancial 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

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3.28 BPMB had only four extension officers on its consulting staff byOctober 1981. Two more will be added in 1981 and. three more in 1982. Thisgroup will work closely with NPC, MARA and MEDEC personnel to provide aLnintegrated approach to entrepreneurial development. BPMB has experiencedtrouble engaging experienced advisory officers; and the turnover has beenhigh. At present it is not publicizing its adivisory services because of ashortage ot personnel.

3.29 BPMB has devised an excellent system fc,r monitoring each client'sfinancial progress, management arnd marketing systems; and for tracking theclient's production facilties. Comments on various aspects of the operationare recorded along with recommenclations and the actions which are taken onthose recommendations. These will be computerizetd. It is also planned toprovide clients with computerized financial statements and analyses.

3.30 BPMB has developed a unique sales unit to assist in selling iitsclient products. The unit is successful in marketing products which areproduced by non-clients as well. Many of the products which P,PMB sells arefood products. Sales had reachecd approximately M$100,000 per month byOctober 1981. Plans are being formulated to use the sales unit to marketMalaysian products in foreign cotntries. This is expected to provide animportant new export marketing channel for small and medium industry inMalaysia.

7. Standards and Industrial Research Institute of Malaysia (SIRIM)

3.31 SIRIM was established i-n 1975 through a merger of the Standardsinstitute of Malaysi and the National Institute for Scientific andIndustrial Research. It is headed by a council of 24 members who areappointed by the Minister of Science, Technology and Environment. SIR:tMheadquarters are located in Selangor. One branch is situated in Trengganuand another is located in East Malaysia.

3.32 SSIs in 'Malaysia can call on SIRIM which is engaged in thedevelopment of standards, quality control, testing, process development,design, research, and the promotiLon of health and safety in industrialenterprises. Its Industrial Consultancy Serice D)ivision (ICSI)) providesthese 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 oron site).

3.33 Organizatins such as MARA, MIDFIC, NPC, BPMB and MEI)EC referclients that have technical prob:Lems and projects to SIRIM. S'IRIM chargesfor 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 ofSIRIM's field extension work for the 1976-1980 period. About 40% of SIRIM's

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work is with Small and Medium Scale Industry (SMI). In addition toconsulting projects, SIRIM initiates plant visits to selected industrialsubsectors. For example, during the 1978-80 time period SIRIM visitedabout 500 metal products industry plants. About 65% of SIRIM field work isdone for bumiputra-owned enterprises.

Table A8: NUMBER OF SIRIM's SMI ON-SITECONSULTING PROJECTS, 1976-80

Industryby size /a 1976 1977 1978 1979 1980 Total

Small 6 13 55 52 50 176Medium 10 30 7 8 4 59

Total 16 43 62 60 54 235

/a Small scale = capital investment excluding land andbuildings 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. Becauseagencies such as MARA, NPC, MIDFIC, BPMB and others that do consultancy workfor SMI do not have sophisticated technological resources, it is vital thatthey have a close working relationship with SIRIM. Otherwise there will be aserious void in the nation's program for SSI development. Table A9 providesinsight into the sources and volume of SIRIMWs SMI inquiries. It should benoted that inquiries from other agenices totalled only 129 over the fiveyear 1976-1980 period. It is also noteworthy that such inquiries have beenfalling off from the peak year of 1978. This decline may be caused by thescant involvement of other agencies with SSI; or it may be influenced bySIRIM's inability to provide appropriate technology to SSI. Other reasonsmay be a lack of good publicity to SSI about SIRIM's services; or the feeswhich SIRIM charges (though modest) may be discouraging SSI. Althoughreasons for the limited usage of SIRIM's services are not known, the mattershould be studied and corrective measures adopted.

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Table A9: SOURCE; OF SIRIM INQUIRIES, 1976-80

Source 1976, 1977 1978 1979 1980 l'otal

Individuals and tinyindustry 11 10 3 7 24 55

Small- and medium-scaleindustry 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 andabout 25 have masters degrees. About 50% of the SIRIM professional staffobtained their advanced degrees with government grants. These individualsare required to stay with the governemnt from 5 to 15 years after comp:Letingtheir academic work as a condition of their grant; therefore, turnover isnot excessive. The professionals are supplemented by a supporting staf-f ofapproximately 500. Ten extension officers make up SIRIM's field consu:Ltingstaff. These individuals have the following types of expertise: 2 FoodTechnologists; 1 Polymer Chemist; 1 Chemist; 3 Mechanical Engineers; 1Electrical Engineer, and 2 Industrial Engineers. When other expertise isneeded, the extension officers call on other members of the SI]RIMprofessional 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 suitablefor SSIs also. A variety of subjects, such as quality control, low costautomation, instrumentation, standards, design and others are covered.Courses are offered 3 to 4 times each year for a fee of M$150--250. Since1979 about 300 individuals have attended SIRIM courses. Most of these havebeen from large and medium scale industry. Workshops for trainingtechniciaAe-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 annualworkshops. No evaluation system has been designed for SIRIM's extension andtraining work.

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Publications

3.37 SIRIM publishes a technical journal which is entitled ALIRANTechnologi. This Journal covers a variety fo subjects including trends inenergy process and product development, food technology, pollution and wastetreatment, standards and quality assurance, testing, and management. Thisjournal, which is published 3 to 4 times a year, is sent to 600-700individuals and organizations. Other dissemination efforts include industrystudies and technical pamphlets which are issued monthly.

Budget

3.38 The SIRIM budget for 1981 included M$8 million for developmentwork and M$10 million for operations. In 1982, M$10 million and M$14million, respectively, for development work and operations have beenallocated.

Limitations and Needs

3.39 In-house electronic data processing and retrieval capabilityis needed to obtain and store foreign sources of technology. (SIRIM is nowa member of Technonet and should be linked up with other sources oftechnology.) The computor is also needed for the assembly and storage ofdomestic technology. It would also have much use in providing SMI designservices. Moreover, if SIRIM is to substantially increase its volume ofwork with SMI, an effort to increase its acquisition, development anddelivery of appropriate technology will be necessary. Finally, if thequantity of extension work is to be increased to a level which is consistentwith the present size of Malaysian industry, the field consultancy staffshould be substantially increased.

8. MIDF Industrial Consultants (MIDFIC)

3.40 MIDFIC was established in 1971 as a wholly owned subsidiary ofMIDF to supplement MIDF's financial assistance with TA. The benefits of anintegrated FA-TA program were anticipated. As part of a commercialorganization, it was deemed necessary for MIDFIC to charge for itsconsulting services. This has not been successful with SSE clients. Manysmall clients cannot afford the fee, others do not recognize the need for TAand still others who had contracted for consulting work with MIDFIC haverefused to pay. As a result, MIDFIC has discontinued a consulting servicewith SSE. It will provide TA for MIDF loan clients; and MIDFIC willcontinue to provide training and make industry studies for governmentagencies that provide TA to SSE.

Staff

3.41 MIDFIC has a staff of 17 professials including the generalmanager. There are 5 economists, 2 marketing, 2 management and 4 financialand accounting specialists on the consulting staff. Technical consulting

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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 quitehigh among MIDFIC consultants during the initial years of operation but ithas slowed somewhat in recent years. During the last five years, MIDFIClost about 25 professional staff members. Turnover has been about 30%-35%per year. Table AIO below provides perspective o the MIDFIC pay schedulefor consultants. MIDFIC has found that consultants with graduate degrees(masters) do not stay as long as people with a single degree. Although itsconsultants are paid somewhat better than government workers, it hasaccepted turnover as a usual part of the operation.

Table A10: MIDFIC CONSULTANTS- MONTHLY PAY

Starting pay Pay after 4-5Background (M$) years (M$)

Diploma holders 800-900 1,200-1,300Economist degree holder 1,000-1,100 1,600-1,800Engineer 1,200-1,300 1,900-2,000

Training Courses

3.42 MIDF's training division has two officers who provide training forfinance officers and aid MIDFIC with courses for other organizations.MIDF's Bumiputra Division has two types of training programs. One is forprospective entrepreneurs and the other is for existing businessmen. Theseprograms are introduced by sessions on management perspectives followed bystudies of management skills, and concluded with a treatment of managementsystems.

3.43 MIDFIC conducts training courses on specific industrial subsecotrsfor government agencies for a charge of M$3,600 for a five-day course withup to 30 participants. From January-October 1980, MIDFIC conducted a seriesof ten courses for 192 contractors which were sponsored by MARA. A systemof participants- feedback was used to evaluate these courses. Most of theparticipants rated the various elements of the courses satisfactory orsufficient. During the 1979-81 (September) period MIDFIC offered 29training courses for MARA's 629 participants, of whom 66% attendedconstruction courses.

9. Other Institutions

3.44 There are a number of other government institutions which have TAprograms or elements of TA programs. Becuase these efforts are very smallor less significant than those which have been discussed, they have not beenincluded in this annex.

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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 facingSSE development in Malaysia can partly be tackled by providing an effectiveorganizational framework to undertake those aspects of SSE promotion effortwhich are essential but have not received adequate attention so far:research and planning, formulation of appropriate policies, development ofhuman resources for TA, designing complementary programs, coordinatinginternal and external resources, and monitoring and evaluating the programs.Consequently, the mission suggests improvements in the support programsalong the lines mentioned below./l These suggestions do not involve muchexpansion but rather aim at consolidation, integration and adoption of acommon approach to solving the critical problems of SSEs and realizing theirpotential in the Malaysian economy.

4.02 Present organizations such as MARA, BPMB, MCYSYD, PE and otherscurrently 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 bereinforced and strengthened. The general organizational structures forBumiputras engaged in trading and some servicing sectors have, however, beencreated and are operating reasonably well.

4.03 For the most part, the work of developing small-scalemanufacturing industries (SSIs), and assisting relatively large firms withinthe SSE category, has not received sufficient attention. It is suggestedthat the present organizational framework be modified and developed to giveneeded attention to manufacturing SSIs and to other neglected components ofSSEs which appear to have a substantial potential for growth. In the

mission's judgment it is essential that MARA and other primary programs forbumiputra development not be diluted by changing their orientation, but thatcomprehensive changes in the existing framework be introduced elsewhere to

make the whole system of SSE support develop in a balanced, integrated andcomplementary 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, themission does not think it desirable to place the added essential tasks withtheir stronger economic orientation within one of the agencies which are

/1 Given the importance of the incentives and policy framework, Chapter 3is especially devoted to a discussion of those issues.

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currently dedicated to welfare-cum-economic service to Bumiputras. Conse--quently, it determined that the most: suitable location within the existinggovernment 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) begradually upgraded to a department level by combining some existing programswith it and adding other essential functions mentioned above. It, isrecommended that the enlarged organization be headed by a person who has astrong background in private sector business management and knowledge ofgovernment. In the following discussions, the reorganized division will bereferred to as the Ministry of Trade and Industry, Small-Scale EnterpriseDepartment (MTISSED)./1

4.05 A major purpose of the specific recommendations made in the mainreport is to illustrate how exactly the critical but: hitherto unattendedproblems of research and planning and policy formulation, the need forcoordination of development programs, inadequacies of resources aLnd programdeficiencies and of monitoring and evaluating of TA efforts can be met withthe minimum necessary modifications and adjustments in the existingorganizational structure for SSE support. The following section providesthe basis and rationale for suggestions to modifying the functions andorganizational 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 alreadyestablished some of the objectives which the mission has included in themodified MTISSED organization. The MTISSED concept is an expansion of theSED program and an elevation of SED within the MTI corganization. It avoidsthe creation of a new, free-standing unit of government.

(b) The Ministry of Trade and Industry has the primary responsibilityfor developing trade and industry in, Malaysia, the work has been recommendedfor MTISSED to carry out as part of that primary responsibility.

(c) By placing the Small-Scale Enterprise Department (SSED) in theMTI and creating the Coordination Division in it to serve as secretariatof the Coordination Committee for Development of Small Enterprises(CCDSE), the proposal should provide the much needed major human andprogram resources within an integrated framework to make CCDSE moreviable. If the new elements of the MTISSED programs were placed inanother organization(s) they would not be as readily accessible to

/1 Although the primary purpose of developing MTISSED would be to providea mechanism for much more comprehensive SSE development, it would havea firm commitment to provide services to existing bumiputra-orientedprograms to strengthen their efforts among bumiputras. This perspectiveshould be kept in view as the description of the new elements arereviewed.

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CCDSE and its secretariat. Lack of such arrangements was one of the majorreasons for the failure of the previous coordinating efforts.

(d) By placing the new programs elements in MTI rather than in one ofthe organizations which primarily are devoted to bumiputra development, it

avoids diluting the efforts of those organizations and confusing theirclear-cut objectives. In addition, it places the new program elements undera Ministry which has a strong economic orientation rather than placing themin 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 theentrepreneurship 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 betweenexpanding 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 theprocess of expanding its EDP training for bumiputras to take over some of

the training work which previously has been done by NPC. These factors ledthe mission to determine that the amalgamation of a part of NPC-s work on

behalf of SSEs would be advantageous rather than detrimental to bumiputradevelopment work.

Alternative Possible Solutions

4.08 In arriving at the above recommendation, a number of alternativesolutions 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 ofthe alternatives, which were considered, follows:

(a) Create a large, new, free-standing organization to deliveran 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 allmuch of the needed structure already exists. It would alsocompound 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 societyin urban as well as rural areas. As previously noted, this may

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fragment MARA's focus; and it would require that its presentpresent socio-economic orientation be redirected. Thle probableresult either would be to dilute its present efforts with ruralbumiputras or to neglect the new work -- none of which would bedesirable.

(c) Expand BPMB to provide the broad scope of TA which has beensuggested for the MTISSED programs. There is merit in bringingFA 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 participationof bumiputra entrepreneurs in the industrial and businesssectors of the economy." If BPMB were assigned the broaderrole of developing all SSEs, it would be departing Erom itsprimary objective. As previously stated, the current effort withbumiputras should be continued and strengthened./l The primaryobjectives of BPMB should not be diffused or changed. The newresources which would be developed in MTISSED should indeed 'beused by BPMB and a close working relationship estab:Lished with theCCDSE, its suggested secretariat, and the proposed CoordinationDivision of MTISSED.

(d) Expand CGC to provide l:he broad TA program which has been sketchedfor MTISSED. This wou:Ld also offer the advantage of bringing TAorganizationally closer to the FA which is provided by commercialbanks under the CGC's SSE loan guarantee schemes. While there issome merit in this concept, it should be noted that CGC presentlyhas none of the TA elements of the program which are needed forthe overall SSE development. While some of these, such as the NPCtraining and extension programs, could be transferred to CGC,those programs would be removed from their present closerelationship with the Ministry of Trade and Industry, and placedin a less logical place from an overall organizational viewpoint.It was concluded that the concept of using CGC as a programfoundation should be discarded, because it currently has neitherTA or direct FA components, and it is organizationally badlylocated for the new SSEI development thrust. Also, even to performmore effectively its established role, CGC needs further study andreorganization that are currently underway.

/1 The mission feels that it does not pay dividends in increased nationalwell being to take development resources from one unfinished program andapply them to another unless the first program is unproductive ordeserves a lower priority. T'hus, it has been recommended that thenew economic development efforts for SSEs be designed to strengthen theexisting efforts for bumiputra development.

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(e) Pernas-Edar at first glance seems to be an illogical choice forthe new thrust because of its narrow orientation to the bumiputragrocery subsector. Even though it has the advantage of being partof the Pernas Group which falls under the Prime Minister's (PM)office and wields influence which could help to develop theresources needed to carry out the overall development of SSEs, theconcept was dismissed for several reasons. Placing it under thePM could imply that it was more important than existing bumiputraprograms which are less strategically located in the Government.Next, PE primarily is dedicated to bumiputra development, anddilution of that effort is not suggested. Finally, thespecialized targets of PE would make it necessary to buildvirtually all of the added TA thrust anew.

(f) MIDF was considered as a possibility for a major overall SSEdevelopment 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 commercialoperation precludes the possibility of carrying out long-term SSEdevelopment work from which fees will not flow in any significantquantity./l Funding must be a government budget item.

(g) MEDEC was not considered suitable because it is an educationalinstitution with the objective of creating and trainingentrepreneurs. It is very small. If MEDEC were used, it wouldmean virtually starting anew to create the organization andprograms which have been recommended. Furthermore, organiza-tionally it is not well-located in the government structureto 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 developmentprograms of principal bumiputra-oriented organizations like MARA, MCYSYD,

/1 A nation can invest in SSE development work with the expectancy thatover the long-term taxes will offset the investment to a degree;and that the overall economic development impact improves the socialand political environment which is desirable for the country. If aprogram such as the one which has been sketched were put into acommercial corporation like MIDF, it would reorient the commercialeffort to the degree that the organization would in effect become agovernment agency.

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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 Thereare a number of other government institutions which have elements of TAprograms but they have not been covered in the discussion below because theirefforts are very small and insignificant.

Majlis Amanal Raayut (MARA)

4.10 MARA is a unique 'one-stop' agency for the development of tiny ortraditional enterprises and is involved in dispensing loans, extendingadvisory services and developing entrepreneurship especially among the ruralbumiputras. In order to improve its efficiency and effectiveness it needs:(a) greater access to adequate technological support together with means tostore and disseminate this information, (b) help in improving marketingassistance to enterprises it has promoted, (c) support in improving theexperience and training of extension officers./2 MARA also needs adequatemethods to evaluate its TA efforts./3

National Productivity Center (NPC)

4.11 Training efforts of NPC to SSEs have had limited effectivenessbecause 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 July1981 looks overly ambitious in view of the severe inadequacies and turnoverof the extension officers and gre,at variation in the need of entrepreneurs.Some of the most critical needs are to: (a) realign its present trainingapproach to an enterprise needs-oriented approach to consultancy, (b) have amore adequate and appropriately trained supply of experienced extensionofficers, and (c) better screening of participants in entrepreneurshiptraining programs and in-depth interaction with t'hem together with effectiveuse of follow-up programs. Most of these basic problems would be tackled inthe framework of the reorganized TA appraoch to SSE discussed in Chapter 5of the main report.

/1 A detailed discussion of the institutional coverage and approach ofthese organizations is given -at in Annexes II and III of this report.

/2 Extension officer deficiencies are a very serious problem among all theagencies involved in providing TA. That is why the mission has sugges-ted a centralized extension officers training center as a part ofMTISSED.

/3 Again, this is a universal problem among agencies that are providing TA.A common system which would allow comparable measurements is needed.

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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, mostlyBumiputras, 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 havefinished vocational school and have some working experience. The newinstitute needs premises. MCYSYD also needs: (a) more and better trainedextension workers; (b) external consultancy help to review and develop thepurposeful SSE development programs; and (c) feasibility studies to helpdetermine appropriate new areas of business activity that should bedeveloped. The mission's proposals to strengthen the MTISSED are alsodesigned to provide effective support to MCYSYD type of program.

Malaysian Entrepreneurial Development Center (MEDEC)

4.13 MEDEC's entrepreneurship development program is quite differentfrom those of NPCs. It offers short-term evening programs or longerresidential programs. The percentage of new enterpreneurs who went intobusiness after EDP has been high (over 50%) and increasing. MEDEC'strainers are carefully screened, interviewed by a panel of two bankers andtwo MEDEC staff and a maximum of 25 participants are selected. MEDECurgently needs to expand the number and training of its staff (currently sixmembers), audio-visual equipment and materials, and requires a largerbudget.

Pernas-Edar Sdn. Bhd (PE)

4.14 Pernas-Edar is already serving about 4,000 bumiputra retailers andis providing a sizeable supply source to bumiputra grocers who were findingit difficult on their own. Its two top executives have had successfulcareers in the private sector. Pernas-Edar could become even moresuccessful and effective if it would increase the experience and number ofits extension staff and retain its better qualified staff. It also needs toinstitute a monitoring and evaluating system for the work of its extensionstaff.

Bank Pembanguanan Malaysia Berhad (BPMB)

4.15 BPMB has an active, integrated program for SSE development thatcovers entrepreneurship development, training, lending and consulting. Ithas a very good system of monitoring each client's financial, management andmarketing progress and has a unique sales unit to assist in selling itsclients' products. Its extension staff remains small (six by end-1981) andlike most other TA efforts, it has faced trouble in engaging and retaininghigh quality, experienced staff. BPMB is primarily a lending institutionand its lending operations are discussed in Chapter 4 of the main report.

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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 loanclients, 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 mostcases 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 countryand 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 ofappropriate technology and, in cooperation with those who can

replicate it, provide it to SSIs on a. commercial and largerscale. 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 workloadwhich 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 ofMTISSED as discussed above.

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ANNEX V: SOME SUGGESTIONS FOR FOLLOW-UP STUDIES

5.01 It is apparent from the Main Report and its Annexes that theevidence, analysis and interpretation of results relating to the SSEs wereseverely constrained due to a wide 'information gap'. While the studiesproposed to be undertaken by the Government under the UNDP/IBRD Projectwould considerably strengthen the information base, especially regarding themanufacturing SSIs, many other studies will be required to build up adequateinformation on SSEs. The following studies are suggested to develop a betterunderstanding of the current status of SSEs and effectiveness of the ongoingsupport programs and impact of the existing or changed government policieson SSEs in Malaysia. Because there are a number of studies with varyingsignificance, it will be useful for the Government to assign prioprities tothem.

Training Programs

5.02 As noted in the Main Report (especially in Chapter 5), there is aproliferation of training programs in various fields including entrepre-neurial development, functional areas (such as accounting, marketing andmanagement), as well as in sectoral and subsectoral-oriented courses for theoperation of businesses such as construction, rice milling, etc. It was notfeasible for the mission to study them in-depth, but preliminary ideas areoffered for Government's consideration. For instance, the rationale andexact context of the various training programs and their contents should beexamined more carefully. Also the quality of the instructional staff tocarry out the training programs needs to be evaluated. Once the courses arecatalogued and evaluated, the inadequacy should be judged in relation to theneeds of the target group(s). This is a vital step, it implies that trainingprograms should be designed to best satisfy the needs of the market.Moreover, the effectiveness of the programs should be ascertained throughperiodic evaluation./2

/1 In addition to the suggestions for the follow-up studies made here, manymore suggestions are integrated in the rest of the report. Readers'attention is drawn particularly to the following: (a) the need forimproving the data base (paras. 1.08 and 1.13 along with their footnotesin 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. Itappears that when MARA got dissatisfied with NPC's EDP work, it startedits own in 1979; though NPC continues to provide special EDPs to BPMB'sclients. MEDEC seems to pursue quite a different approach to EDP trainingthan the rest. Although it is reasonable to assume that variations incourses may be desirable for target groups with different needs, theMalaysian circumstances indicate a lack of basic information on whichcourse differences can be properly established.

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5.03 The mission has suggested that the NPC staff should be strengthenedto more effectively carry out its; present EDP entrepreneurial as well as newtraining programs for larger SSEs including manufacturing SSIs. It issuggested that NPC may work with a consultant to develop criteria forevaluating the present training and extension worker staff. This exerciseshould have the objective of providing information for improv:Lng itstraining and extension work.

Appropriate Technology

5.04 It was suggested in Main Report (Chapter 5) that SIRIM beprovided with the added resources which will be necessary to acquire anddevelop a larger body of appropriate technology to support thie developmentof manufacturing SSIs. Before enhancing the body of appropriatetechnology, it will be necessary to have a clear understanding of the SSIsubsectors which need technological assistance (MARA and other agencies arefamiliar mostly with the general needs), and it will also be necessary toassign priorities among SSI subsectors for an accelerated growth during the1980s. The current level of tec'hnology in some subsectors has already beendetermined. For example, the Technonet Study, "Small and Medium Scale MetalWorking Industries," provides an analysis of the average technology levelsin various segments of that subsector. SIRIM should now evaluate its fundof appropriate technology for small-scale metal working industries andidentify the additional requirements.

Government Procurement

5.05 The Treasury Department provided the mission with sufficientgeneral information on the government procurement from SSEs. In order todevelop a detailed plan for a more extensive SSE-oriented governmentprocurement program, it would be helpful if a detailed analysis of theprocurement from SSEs during recent years is done. This should includeprocurements by all ministries and agencies of the central government:information on the products and services procured, description of eachagency procurement procedures (practices) and internal organization forhandling such procurements (who does it), role of agents, value of eachcontract, and an evaluation of the results. Problems and limitations thathave been encountered could be used in developing more comprehensive andeffective Government procurement guidelines.

Finance

5.06 As mentioned in Chapter 4, no estimates of demand for credit bySSEs were available. While indirect estimates (based on secondary sources)can be prepared for corporate sector having firms with published balancesheets and other financial statements, for SSEs having limited formalfinancial statements, such estimates are likely to involve a special samplesurvey. This sample survey should include, intetr alia, issues regarding

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long-term and short-term financing, interest rate, availability of and accessto credit, collateral and adequacy of accounts. Virtually nothing is knownabout the nature and size of the informal credit market and financing throughtrade/commercial credits. Some case studies need to be conducted toascertain the extent of financing through these channels./l Similarly,virtually nothing is known about the quality of bank portfolios (with theexception of BPMB), and Bank Negara should examine the issue and developsystematic procedure for this purpose. At the same time, Bank Negara shouldalso gather some additional information from commercial banks and financecompanies, such as terms of lending. It is understandable that theGovernment wants to provide funds to SSEs at a subsidized rate. It would,however, be useful for the Government to assess the cost of these subsidiesso that the anticipated benefits may be better appreciated in relation totheir costs.

Research and Planning

5.07 In Chapter 5 (see subsections on Research and Planning, and SizeStandard) of the Main Report, it was recommended that studies be conductedto determine the role of SSEs in the Malaysian economy, and to identifysectors and subsectors most suitable for priority development. Thesestudies are needed if certain SSE subsectors are selected for specialdevelopment effort and subsector-specific TA programs are to be developed.It will also be necessary to establish long-term objectives for a geographicdispersion of SSEs. While the needs of rural bumiputra should continue tobe addressed, priority ranking and selectivity would be more cost effective.During the selection process the scope for subscontracting should also becarefully looked into, inter alia, in the auto-assembly, metal working, andrubber industries. By targeting on a few subsectors for integrated FAand TA inputs, the support programs will have high productivity.

/1 Studies of the informal or unorganized credit market have been sponsoredby the World Bank. See T.A. Timberg and C.V. Aiyar, Informal CreditMarkets in India, and Yung Chul Park, Unorganized Financial Sector inKorea, 1945-75 (Public and Private Finance Division, DevelopmentEconomics Department, the World Bank, Washington, D.C., May 1980 andNovember 1976).

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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 FliPSectors 1971 1973 1978Tc 1980 1980 1990

------------ Level in M$ Million -------------

Manufacturing 1,858 2,508 4,081 5,054 5,374 15,121Wholesale & retail trade 1,579 1,874 2,563) 3,276 3,295 7,279Hotels & restaurants 138 164 261)Construction 541 651 918 1,195 1,186 2,938Mining & 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 8,044Others /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. 11.6Wtholesale & retail trade 12.1} 12.5 12.8 6.5}6.8 7.4 8.3Hotels & restaurants 1.1) 9.71Construction 4.2 4.6 5.2 7.1 9.2 9.4Mining & quarrying 6.4 4.6 3.3 4.3 4.1 4.6Transport, 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 9.0Others /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; andimport duties.

/c Preliminary.

Sources: For years 1971, 1973 & 1978 (DOS): National Accounts Stat:istics,1971-77 and 1973-1978 (Department of Statistics, Governmelnt ofMalaysia, 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).

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Table 1.2: MALAYSIA: TOTAL EMPLOYMENT BY MAJOR SECTORS,1970, 1973, 1978 and 1980

FMP MOF ES /cSectors 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 56Transport, storage &communications 115 193 160 180 (33) (50)

Agriculture, forestry & fishing 1,715 2,067 1,857 2,026Finance, insurance, real estate& business services 31 52 /b /b (13) (21)

Government services 397 710 467 636Other 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 "otherservices," which consist of distributive trades such as hotels, cinemas,and shipping services.

/c Establishment Survey (ES) estimates are invariably lower than the Ministryof Finance/Fourth Malaysia Plan estimates which are said to be based on thelabor force survey results. Figures in ( ) correspond only to a segment ofthe 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 theDepartment of Statistics. See the following Tables 2.1 & 2.2 fordetails.

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Table 1.3: MALAYSIA: GROWTH IN NUMBER OF REGISTEREDFIRMS (SOLE PROPRIETORSHIP AND PARTNERSHIP), 1966-1980

Malay Chinese Indian Foreigner JointYear 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 - 127.41968 15.1 2.8 78.6 20.9 15.2 3.0 0.5 0.2 - 136.31971 19.3 5.3 88.7 25.0 17.1 3.7 0.6 0.2 - 159.91973 27.8 8.4 102.4 29.2 18.6 3.8 0.6 0.2 0.8 191.81974 31.0 10.4 103.2 30.5 17.4 3.7 0.5 0.1 2.2 199.01975 35.7 12.7 109.2 33.6 17.9 3.8 0.4 0.1 3.4 216.81976 40.4 15.0 116.5 37.8 18.5 4.0 0.4 0.1 4.7 237.41977 45.0 16.8 125.4 42.7 19.7 4.3 0.4 0.1 5.9 260.31978 50.8 18.6 136.1 47.5 21.1 4.6 0.5 0.1 6.9 286.21979 53.5 19.4 142.7 51.5 21.2 4.7 0.4 0.1 7.3 300.81980 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 - 7.11973-1978 12.7 17.1 5.9 10.2 2.6 4.0 (-)4.7(-)6.5 55.0 8.31971-1980 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, Governmentof Malaysia, Kuala Lumpur (unpublished data).

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Table 2.1: PENINSULAR MALAYSIA: PRINCIPAL STATISTICS BY SECTORS, 1978

Total Gross SalariesEstab- employ- Value /f output/ Fixed andlishments 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 1,289.3 444.5 193.1Quarrying 190 6,687 91.9 173.1 102.6 31.3Construction /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 39.3Real 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 40.4Road haulage 2,312 18,437 85.0 311.0 128.1 61.8Bus transport 278 17,442 85.8 241.4 119.2 69.0Taxi transport 1,413 3,633 6.8 23.3 18.2 2.6Shipping companies 7 2,247 44.2 304.3 479.9 21.6Stevedoring companies 19 6,063 38.5 46.7 1.5 32.5Shipping 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 34.0Tourist & travel agencies 321 2,176 10.0 49.5 10.2 7.7Cinemas 367 4,857 28.8 126.8 27.6 11.8Photo studios /e 526 1,904 10.8 30.2 8.2 2.8Hairdressing X: 3,055 7,651 25.1 31.7 5.7 8.2Laundries /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 23.6Engineers 171 3,392 34.5 58.5 5.9 27.3Architects 1 148 1,961 20.2 39.5 6.2 11.9Architects II 118 423 1.7 3.0 1.3 0.7Surveyors 162 3,679 20.0 37.4 5.1 15.0Lawyers 480 4,817 44.2 69.1 12.1 16.4Dentists 1 121 531 4.5 7.9 3.3 1.2Dentists II 254 482 2.0 4.2 1.7 0.5Doctors 854 5,401 54.0 106.8 27.3 17.0Veterinary 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 9.2Insurance companies 271 7,766 288.8 1,286.1 101.1 44.7Private schools 1,043 9,319 35.9 55.5 47.4 30.6Private 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 seefootnote /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 sectorsas the "output minus input."

Source: The Department of Statistics, Government of Malaysia, Kuala Lumpur (unpublisheddata).

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Table 2.2: PENINSULAR MALAYSIA: PRINCIPAL STATISTICS BY SECTORS, 1973

GrossEstablish- 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 54,608 473.0 686.9 291.6 129.5Quarrying 160 5,743 38.9 69.7 37.0 17.0Construction 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 23.9Real 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 17.2Road haulage Id 326 8,066 27.7 114.0 32.6 22.6Bus transport 128 13,956 58.3 137.4 57.5 42.0Taxi transport /d 66 676 1.5 4.7 2.3 1.1Shipping companies 10 1,521 15.7 87.3 260.2 9.8Stevedoring companies 18 6,958 30.1 36.6 0.7 21.1Shipping 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 14.5Tourist & travel agencies 164 1,338 3.4 19.6 3.6 3.8Cinemas 333 4,515 19.8 83.6 13.3 7.6Photographic studios 423 1,365 N/A 11.5 NIA 1.2Barber & beauty shops 3,040 6,930 N/A 18.3 N/A 4.5Laundries & 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 12.6Engineers /e 88 2,001 20.8 32.3 2.9 12.8Architects /e 227 1,964 17.4 29.0 3.5 7.6Surveyors /e 86 1,740 8.8 14.6 2.1 5.2Lawyers /e 367 3,422 26.0 38.5 6.4 9.1Dentists Iv 360 909 4.2 8.0 3.6 1.0Doctors /e 666 4,288 36.5 74.2 16.0 8.9Veterinary 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 13.5Stock brokers 36 1,247 23.3 40.0 1.8 6.1Insurance companies 266 4,511 136.5 375.2 53.6 21.5Private schools 732 6,381 20.5 30.3 25.6 16.9Private 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 ofWholesale and Retail Trades in Peninsular Malaysia in 1974 (Volume 11), Census of Construc-tion Industries in Peninsular Malaysia in 1973 Census of Mining Industries, PeninsularMalaysia, 1973 (The Department of Statistics, Government of MaLaysia, Kuala Lumpur.)

- 63 -

Table 2.3: PENINSULAR MALAYSIA: GROWTH AND ECONOMIC SIGNIFICANCEOF 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 SELECTEDSECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978

Total Employment Size Group100- 200- 500-

<5 5-9 10-19 20-29 30-49 50-99 199 499 999 >1,000 TotalSectors ------------------------- 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 1,286Road haulage 1,547 446 159 46 51 50 9 4 - - 2,312Bus transport 39 66 38 19 22 43 28 19 4 - 278Quarrying 6 23 51 37 34 29 9 1 - - 190Housing developers 243 135 114 28 22 17 8 2 - - 569Produce brokers /d 1,947 516 126 30 40 28 10 6 1 - 2,704Finance companies 250 194 65 19 12 6 3 1 - - 550Insurance 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 - 2,734Other services /f 6,207 1,221 555 183 118 64 26 15 5 2 8,396

Total (34sectors) 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 /ain 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 fromoriginal 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.~~~~~~~~~~~33srTotal (34sectors) 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 SECTORSBY 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 805.7Road haulage /i 14.3 10.2 9.0 5.2 9.0 16.2 4.2 16.8 - - 85.0Bus transport /i 0.5 1.8 1.9 2.1 3.3 14.7 21.8 26.8 12.9 - 85.8Quarrying 0.1 1.4 7.7 9.1 17.4 29.2 24.1 3.0 - - 91.9Housing developers /i 15.2 (-) 4.3 7.3 30.0 17.2 7.7 28.5 12.4 - - 114.1Produce brokers /d 28.8 34.7 47.6 38.6* 90.9* 115.0* 107.8 94.7* 44.5* - 602.5 ONFinance companies /i 5.9 7.8 29.9 17.9 9.7 22.4 13.8 6.0 - - 113.2Insurancecompanies /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 222.2Other services7X /i 378.8

Total (34sectors) 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 areapproximations for these sectors as well as for road haulage, bus transport, housing developers, and financeand insurance companies.

See Table 3.1 for footnotes /a to /f and source.

Table 3.4- PENINSULAR MALAYSIA: FIXED ASSETS IN SELECTED SECTORSBY TOTAL EMPLOYMENT SIZE GROUP, 1978.

Total Employment Size GroupSectors <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 - 5.1 444.5Road haulage 27.4 18.6 14.1 7.7 9.2 16.6 6.7 27.8 - - 128.1Bus transport 1.0 3.6 3.2 3.1 6.7 19.9 31.0 29.8 20.9 - 119.2Quarrying 0.1 2.8 10.5 23.7 15.9 29.1 14.3 6.2 - - 102.6Housing developers 133.4 91.4 166.1 52.3 30.5 64.5 46.4 21.7 - - 606.3Produce brokers /d 11.2 12.1 9.6 8.4 15.1 12.8 10.9 15.5* 7.3* - 102.8Finance companies 14.4 9.4 11.0 4.2 6.6 8.4 1.7 14.0 - - 69.9Insurance 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 - 70.6Other 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-- 9,928.5sectors)

---------------------------------- Total assets (M$ million) ---------------------------------

Retail trade /g 533.1 313.7 183.1 -----116.2-- 106.3 95.1 ---------64.3---------- 1,411.8Wholesale 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 onDecember 31, 1978.

See Table 3.1 for footnotes /a to /f and source.

Table 3.5: PENINSULAR MALAYSIA: GROSS OUTPUT IN SELECTED SECTORSBY 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 1,289.3Road haulage 49.2 37.9 38.9 20.2 31.6 64.8 17.3 51.0 - - 311.0Bus transport 1.5 5.5 5.9 7.2 10.9 39.9 61.9 75.7 32.9 - 241.4 oQuarrying 0.2 2.5 13.9 16.4 28.0 56.3 47.9 7.9 - - 173.1 XHousing developers 141.5 126.8 219.8 143.9 91.8 104.0 150.3 74.6 - - 1,052.7Produce brokers /d 758.8 1,050.2 713.9 383.2* 598.7* 581.4* 447.1 413.5* 194.6* - 5,141.6Finance companies 20.8 63.2 85.5 60.3 76.2 60.8 96.0 30.8 - - 493.4Insurance 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 - 385.6Other 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 (34sectors) 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 OFSELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1973

Total Employment Size GroupSectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >X,000, Total

Number of EstablishmentsManufacturing /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 EngagedManufacturing /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 3.7.1Page 1 of 1

Table 3.7.1: PENINSUILAR MALAYSIA: PRINCIPAL STATI:STICSOF SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1978

TSEs < … SSEs ------- > MSEs LSEsSectors <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 74,838Wholesale ti-ade 7,846 4,670 2,425 7,095 167 13 15,121Construction 1,034* 3,121* 1,603* 4,724* 524 97 6,379M:ining 8 72 996 1,068 201 9 1,286Road haulage 1,547 446 256 702 59 4 2,312Rousing developers 243 135 164 299 25 2 569Produce brokei-s 1,947 516 196 712 38 7 2,704

/aSubtotal (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 2,418 189,266Wholesale trade 21,168 29,906 41,057 70,963 14,694 4,046 110,871Construction 3,801* 21,306* 35,598* 56,904* 47,450 39,199 147,354Mining 25 504 27,448 27,952 18,181 3,492 49,650Road haulage 4,218 2,804 5,305 8,109 4,560 1,550 18,437Housing developers 517 891 3,002 3,893 2,236 485 7,131Produce brokers 4,855 3,182 3,792 6,974 3,203 2,375 17,407

/aSubtotal (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.MPage 2 of 2

Table 3.7.1: PENINSULAR MALAYSIA: PRINCIPAL STATISTICSOF SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1978

TSEs <------- SSEs -------> MSEs LSEsSectors <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 4.2 290.5 294.7 407.2 103.7 805.7Road haulage 14.3 10.2 23.2 33.4 20.4 16.8 85.0Housing developers 15.2 (-)4.3 54.5 50.2 36.2 12.4 114.1Produce brokers 28.8 34.7 177.1 211.8 222.8 139.2 602.5

/aSubtotal (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 48.9 444.5Road haulage 27.4 18.6 31.0 49.6 23.3 27.8 128.1Housing developers 133.4 91.4 248.9 340.3 110.9 21.7 606.3Produce brokers 11.2 12.1 33.1 45.2 23.7 22.8 102.8

/aSubtotal (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 theabove-mentioned eight sectors.

/a Figures in ( ) in the "Fixed Assets" block refer to total assets (fixed assets andstocks) as on December 31, 1978.

Source: Tables 3.1 to 1 4

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Table 3.7.2: PENINSULAR MALAYSIA: PRINCIPAL STATISTICSOF SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1973

TSEs <------- SSEs … -> MSEs LSEsSectors <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 11,060Retail trade 68,052 3,488 911 4,399 48 6 72,505Wholesale trade 6,520 3,557 1,987 5,544 126 12 12,202Construction 614* 1,648* 1,124* 2,,772* 344 68 3,798Mi iing 22 59 1,159 1,218 184 11 1,435

Number of Persons Engaged

Manufacturing 11,733 15,801 61,724 77,525 79,428 129,248 297,934Retail trade 136,748 20,820 14,229 35,049 4,182 1,577 177,556Wholesale trade 18,178 23,008 33,585 56,593 11,000 2,895 88,666Construction 2,364* 11,077* 24,557* 35,634* 31,358 28,163 97,519Mining 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 2,326.9Retail 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 2,294.6Retail 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.

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Table 3.8: PENINSULAR MALAYSIA: PRINCIPAL STATISTICS OFSELECTED 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 EstablishmentsManufaccuring /a 382 295 683 640 604 667 402 596 130 100 4,499Retail trade /7 25,259 2,661 1,774 747 335 182 42 14 1 2 31,017Wholesale trade /b 6,325 2,269 2,667 1,259 733 486 146 95 16 7 14,003Construction /c 752 348 471 307 296 197 75 41 10 3 2,500Mining 135 79 199 253 278 200 58 62 20 2 1,286Road haulage 699 600 616 193 104 71 20 5* 3*. 1* 2,312Bus transport 9 34 66 29 31 45 37 24 2* 1* 278Quarrying 40 6 16 15 20 49 17 24 2 1 190Housing developers 143 41 65 58 52 68 34 79 16 13 569Produce brokers /d 2,016 230 238 98 44 46 12 17 3 - 2,704Finance companies 255 75 77 49 33 34 10 10* 6* 1* 550Insurance 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 EngagedManufacturing /a 8,617 5,273 15,059 17,823 21,791 34,103 35,165 102,735 58,876 78,276 377,718Retail trade /iW 74,147 11,010 10,432 5,902 4,070 6,813 1,467 991 149 718 115,699Wholesale trade /b 26,420 12,993 20,307 14,263 9,925 10,130 4,163 6,709 1,827 1,853 108,590Construction /c 18,157 8,481 17,485 14,774 17,938 20,420 11,826 9,568 3,715 1,217 123,581Mining 2,664 1,582 4,932 7,577 9,154 9,258 3,550 6,195 ----- 4,738 ----- 49,650Road haulage 2,235 2,308 3,302 2,186 2,182 2,944 1,211 1,150* 695* 230* 18,437Bus transport 50 183 613 393 990 2,654 4,609 6,406 1,025* 520 17,443Quarrying 1,537 58 274 296 447 1,365 643 1,610 350* 107* 6,687Housing developers 551 198 599 1,069 800 844 715 1,353 435 567 7,131Produce brokers /d 6,905 1,316 1,730* 1,267* 813* 1,414 1,521* 1,339* 1,102 - 17,407Finance companies 1,118 497 610 468 349 509 203 425* 255* 44* 4,478Insurance 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 5,302.3Retail trade /b 374.1 73.9 96.7 72.6 37.0 65.9 19.3 30.9 2.1 26.1 798.6Wholesale trade /b 427.3 168.8 302.5 268.8 253.1 227.6 129.4 383.3 231.7 255.5 2,648.0Construction /c 118.6 45.0 111.3 95.1 150.8 164.5 118.5 152.9 46.0 18.3 1,021.0Mining 28.0 9.4 39.3 67.5 86.1 113.6 86.9 196.4 178.5 ---- 805.7Road haulage 6.2 7.1 12.0 10.1 10.7 15.1 5.0 10.4* 6.3* 2.1* 85.0Bub transport 0.2 0.6 1.9 1.5 3.5 11.1 20.0 34.7 8.3* 4.1* 85.8Quarrying 12.2 0.5 1.4 1.4 4.5 19.1 9.3 33.1 6.7 3.6 91.9Housing developers 15.5 (-)3.5 16.8 2.8 34.1 5.4 17.1 40.6 Neg. (-)14.9 114.1Produce brokers /d 97.5 15.7 34.4* 49.2* 32.1* 85.7* 126.9* 102.9* 58.0 - 602.6Finance companies 27.8 0.2 8.8 10.1 9.5 20.8 3.9 18.8* 11.3* 1.9* 113.3Insurance 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 5,195.3Retail 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 1,411.8Wholesale 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 3,470.7Construction /c 1.9 5.1 15.3 22.4 41.1 63.8 51.4 77.0 70.1 34.4 382.5Mining 0.5 1.2 6.9 18.6 41.8 59.8 37.9 122.1 ----- 155.7 ---- 444.5Road haulage 4.0 8.5 19.2 13.5 14.5 21.3 12.9 18.9 11.4* 3.9* 128.1Bus transport 0.1 0.5 2.2 2.2 4.7 15.2 26.3 50.1 11.9* 6.0* 119.2Quarrying 0.1 0.1 0.6 1.1 2.9 15.4 12.0 47.8 15.1* 7.6* 102.6Housing developers 0.4 0.6 2.3 4.2 7.9 21.2 25.0 175.0 110.8 259.0 606.3Produce brokers /d 3.7 3.2 7.2* 6.7* 5.9* 14.4 9.5* 33.5* 18.9 - 102.8Finance companies 0.9 1.1 2.4 3.5 4.4 11.3 6.6 23.3* 14.0* 2.4* 69.9Insurance 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 18,548.6Retail trade 1W 3,407.7 834.4 911.8 589.9 341.6 482.3 142.1 158.1 13.2 75.9 6,957.0Wholesale 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 21,256.2Construction /c 272.4 118.5 277.4 247.6 343.7 362.3 234.1 282.5 110.5 29.4 2,278.4Mining 46.8 17.0 76.2 129.3 166.9 209.1 140.0 275.0 ----- 229.0 ---- 1,289.3Road haulage 19.7 23.0 43.4 34.9 43.1 60.0 26.2 33.5 20.2* 6.8* 311.0Bus transport 0.4 1.5 5.4 4.6 11.5 34.5 59.5 92.9 20.7* 10.4* 241.4Quarrying 33.4 0.7 3.0 2.5 7.3 32.4 14.4 62.9 11.0* 5.5* 173.1Mousing developers 109.5 23.7 74.4 86.4 127.7 68.5 102.6 252.6 104.3 102.9 1,072.7Produce brokers /d 1,433.8 289.6 602.3* 560.9* 209.6* 499.6 779.7* 537.0* 229.0 - 5,141.6Finance companies 88.2 19.5 47.9 39.9 38.7 106.7 29.4 72.4* 43.5* 7.2* 493.4Insurance 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 OFSELECTED 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 EstablishmentsManufacturing 6,230 1,365 1,241 622 492 441 261 322 55 33 11,060Retail trade /a 28,021 1,850 1,247 277 111 55 17 8 2 1 31,589Wholesale trade /a 6,555 1,916 1,612 688 325 201 65 52 4 6 11,424Construction 399 227 274 179 111 80 20 -------- 9------------ 1,299Mining 328 144 342 312 162 69 21 48 ……9 ------ 1,435

Number of Persons EngagedManufacturing 32,486 15,147 21,704 17,311 19,156 30,863 32,693 85,147 22,960 20,467 297,934Retail trade /a 79,000 9,560 8,125 3,239 2,246 1,797 654 1,142 365 214 106,342Wholesale trade /a 29,095 12,547 15,495 9,337 6,583 5,779 3,107 4,332 206 474 86,955Construction 12,197 6,655 12,673 12,759 11,103 16,729 5,660 ----------- 2,359 --------- 80,135Mining 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 2,326.9Retail trade /a 266.0 55.6 60.0 31.1 22.2 15.2 12.4 39.2 10.4 2.5 514.6Wholesale trade /a 341.2 138.4 212.1 211.0 163.8 164.9 116.3 173.4 76.1 83.5 1,680.7Construction 45.0 23.5 49.2 47.4 48.4 85.3 20.0 ---------- 31.6 --------- 350.6Mining 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 2,294.7Retail 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 16.3 882.8Wholesale 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 2,110.9Construction 1.7 3.3 8.9 12.9 15.3 23.6 13.7 ---------- 33.0 ---------- 112.4Mining 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 7,677.7Retail trade /a 2,572.6 517.9 575.8 231.2 147.6 100.6 94.4 109.4 30.1 10.9 4,390.5Wholesale 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 14,546.5Construction 130.3 69.5 143.7 132.8 138.4 212.2 55.0 --------- 57.2 ----------- 939.0Mining 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 OFSELECTED 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 5,302.3Retail trade 25,259 5,517 224 17 31,017 374.1 280.2 85.2 59.1 798.6Wholesale trade 6,325 6,928 632 118 14,003 427.3 993.2 357.0 870.5 2,648.0Construction 752 1,422 272 54 2,500 118.6 402.2 283.0 217.2 1,021.0Mining 135 809 258 84 1,286 28.0 202.3 200.5 374.9 805.7Road haulage 699 1,513 91 9 2,312 6.2 39.9 20.1 18.8 85.0Housing developers 143 216 102 108 569 15.5 50.2 22.5 25.9 114.1Produce brokers 2,016 610 58 20 2,704 97.5 131.4 212.6 160.9 602.6

/aTotal (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 5,195.3Retail 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 83.9 115.2 181.5 382.5Mining 2,664 23,245 12,808 10,933 49,650 0.5 68.5 97.7 277.8 444.5Road haulage 2,235 9,978 4,155 2,075 18,437 4.0 55.7 34.2 34.2 128.1Housing developers 551 2,666 1,559 2,355 7,131 0.4 15.0 46.2 544.8 606.3Produce brokers 6,905 5,126 2,935 2,441 17,407 3.7 23.0 23.9 52.4 102.8

/aTotal (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.

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Table 3.11: PENINSULAR MALAYSIA: EMPLOYMENT PER ESTABLISHMENTIN SELECTED SECTORS BY TYPE FOR SMALLEST SIZE GROUPS, 1973/74/75

Unpaid UnpaidPaid family Paid family

employees workers Refer- employees workersFull- 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 5.21Retail trade -- 0.20 -- 1.81 2.01 1974 n.a. n.a. n.a. n.a.

Wholesaletrade -- 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 11.10Retail trade -- 3.30 - 2.67 5.97 1974 n.a. n.a. n.a. n.a.

Wholesaletrade - 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 17.48Retail trade -- 11.19 -- 1.48 12.66 1974 n.a. n.a. n.a. n.a.

Wholesaletrade -- 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.

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Table 4.1: PENINSUJLAIR MALAYSIA: OPERATIONAL CHARACTERISTICSOF SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978

Total Employment Size GroupSectors <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 PersonEngagedi 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 16.2Quarrying 5.9 8.9 10.6 10.0 13.9 14.4 18.0 11.1 - - 13.7Housing developers 29.4 (-)4.8 4.9 45.4 20.4 6.7 26.1 25.6 - - 16.0Producer brokers /d 5.9 10.9 29.7 55.6* 60.8* 60.4* 82.9 58.4* 59.3* - 34.6Finance companies 11.7 6.0 35.5 38.7 21.7 66.3 37.8 28.0 - - 25.3Insurance 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 Valueof 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 -------- 0.57Wholesale 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 -------- 0.76Construction 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 -------- 1.81Quarrying 1.00 0.50 0.73 0.38 1.09 1.00 1.69 0.48 - - 0.90Housing developers 0.11 0.05 0.04 0.57 0.56 0.12 0.61 0.57 - - 0.19Producer brokers /d 2.57 2.87 4.96 4.60* 6,02* 8.98* 9.89 6.12* 6.10* - 5.86Finance companies 0.41 0.83 2.72 4.26 1.47 2.67 8.12 0.43 - - 1.62Insurance 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 Assetsin 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 ------- 12.2Wholesale 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 --- 9.0Quarrying 5.9 17.8 14.5 26.1 12.7 1.4 10.7 22.9 - 15.3Housing developers 258.0 102.6 111.0 79.1 36.1 56.5 42.,4 44.7 - 85.0Producer brokers /d 2.3 3.8 6.0 12.1 10.1 6.7 8.4 9.5 9.7 5.9Finance companies 28.5 7.2 13.0 9.1 14.7 24.9 4.7 65.4 - 15.6Insurance 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 Percentof Gross Output

Manufacturing 25 29 28 28 25 30 28 27 35 29 29Retail trade 8 9 8 ---- 12 -- 17 18 ---------- 22 -------- 10Wholesale trade 9 9 9 --- 12 -- 21 26 --------- 18 -------- 12Construction 44 36 40 42 43 43 49 46 49 42 45Mining 50 42 56 51 53 58 75 ---------- 77 ------- 62Quarrying 50 56 55 55 62 52 50 38 - 53Housing developers 11 -3 3 21 19 7 19 17 - 11Producer brokers /d 4 3 7 10 15 20 24 23 23 12Finance companies 28 12 35 30 13 37 14 19 - 23Insurance 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 CHARACTERISTICSOF SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1973

Total Employment Size GroupSectors <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 PersonEngaged in M$'000)Manufacturing 2.5 3.5 4.4 5.8 6.2 8.4 9.6 9.9 7.7 '9.5 7.8Retail 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- alueof Fixed Assets)Manufacturing 1.35 1.49 1.40 1.49 1.03 1.14 1.00 0.80 0.81 1.33 1.01Retail 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 - - 0.58Wholesale 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 Assetsin M$'000 per PersonEngaged)Manufacturing 1.9 2.4 3.2 3.9 6.1 7.4 9.5 12.3 8.6 7.2 7.7Retail 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 Percentof Gross Output

Manufacturing 9 32. 28 29 32 43 42 26 32 27 30Retail trade /a 11 9 9 ---- 16 --- 15 17 38 - - 12Wholesale trade /a 7 8 9 ---- 12 --- 21 20 25 - 12Construction /b ----- 25 31 31 35 38 36 42 ----- 41 ---- 37Mining 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) hasbeen used.

Source: Table 3.6.

_ /9 _

Table 4.3.1: PENINSULAR MALAYSIA: OPERATIONAL CHARACTERISTICSOF SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1978

TSEs <--- SSEs ------ > MSEs LSEsSectors <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 16.2Road haulage 3.4 3.6 4.4 4.1 4.5 10.8 4.6Housing developers 29.4 (-)4.8 18.2 12.9 16.2 25.6 16.0Produce brokers 5.9 10.9 46.7 30.4 69.6 58.6 34.6

/aSubtotal (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 0.66Housing developers 0.11 (-)0.05 0.22 0.15 0.33 0.57 0.19Produce brokers 2.57 2.87 5.35 4.69 9.40 5.86 5.86

/aSubtotal (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 13.1Retail 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 theabove-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 CHARACTERISTICSOF SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1973

TSEs <- -- SSEs -------> MSEs LSEsSectors <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 7.8Retail 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 1.01Retail 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 3.12Mining 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 7.7Retail 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 CHARACTERISTICSOF 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 PersonEngaged 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 14.0Retail 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 - Valueof 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 1.93Id 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 2.67Mining 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 Assetsin M$'000 per PersonEngaged)

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 Percentof Gross OutputManufacturing /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 11Wholesale 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 CHARACTERISTICSOF 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 PersonEngaged in M$'000)Manufacturing 2.7 3.1 3.7 4.8 6.7 6.8 7.5 8.6 13.0 20.5 7.8Retail trade /a 3.4 5.8 7.4 9.6 9.9 8.5 19.0 34.3 28.5 11.7 4.8Wholesale trade /a 11.7 11.0 13.7 22.6 24.9 28.5 37.4 40.0 369.4 176.2 19.3Construction 3.7 3.5 3.9 3.7 4.4 5.1 3.5 …13.4 4.4Mining 4.3 5.3 4.7 6.0 6.8 11.2 12.8 19.0 19.3 --- 8.7

Capital Productivity(Value Added - Valueof Fixed Assets)Manufacturing 5.49 2.38 2.03 1.90 1.83 1.48 1.31 1.04 0.82 0.59 1.01Retail trade /a 4.55 2.25 1.66 1.62 1.28 0.85 1.11 1.90 0.69 0.16 2.18Wholesale trade /a 9.05 4.46 4.22 4.02 3.22 2.49 2.32 1.54 2.55 1.22 3.06 1Construction 26.47 7.12 5.53 3.67 3.16 3.61 1.46 --------- 0.96 --------- 3.12 XMining 33.36 8.62 4.00 2.79 1.79 2.28 2.00 1.38 ---- 0.36 ---- 1.62

Capital-Labor RatioValue of Fixed Assetsin M$'000 per PersonEngagedManufacturing 0.5 1.3 1.8 2.5 3.7 4.6 5.7 8.2 15.9 34.7 7.7Retail trade /a 0.7 2.6 4.4 5.9 7.7 10.0 17.1 18.0 41.1 74.3 2.2Wholesale trade /a 1.3 2.5 3.2 5.6 7.7 11.5 16.2 26.0 145.1 144.3 6.3Construction 0.1 0.5 0.7 1.0 1.4 1.4 2.4 … 14.0 ---- i-- 1.4Mining 0.1 0.6 1.2 2.2 3.8 4.9 6.6 13.8 ---- 53.2 ---- 5.3

Value Added as Percentof Gross OutputManufacturing 28 27 25 26 26 28 26 32 32 36 30Retail trade /a 10 11 10 13 15 15 13 36 35 23 12Wholesale trade /a 10 8 8 11 13 15 10 21 31 30 12Construction 35 34 34 36 35 40 36 ----------- 55 --- 37Mining 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 5.1.1Page 1 of 1

Table 5.1.1: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OF PRINCIPALSTATISTICS IN EMPLOYMENT SIZE SEGMENTS BY SELECTED SECTORS, 1978

TSEs <------- SSEs MSEs LSEsSectors <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 59.0Wholesale trade 8.3 26.7 21.7 24.7 6.6 2.2 11.9Construction 1.1* 17.8* 14.3* 16.5* 20.6 16.5 5.0Mining Neg. 0.4 8.9 3.7 7.9 1.5 1.0Road haulage 1.6 2.5 2.3 2.4 2.3 0.7 1.8Produce brokers 2.0 2.9 1.8 2.5 1.5 1.2 2.1Housing developers 0.3 0.8 1.5 1.0 1.0 0.3 0.4

/aSubtotal (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 17.7Wholesale trade 10.5 26.4 17.6 20.5 6.3 1.4 10.4Construction 1.9* 18.8* 15.3* 16.4* 20.5 13.7 13.8Minning Neg. 0.4 11.8 8.1 7.8 1.2 4.7Road haulage 2.1 2.5 2.3 2.3 2.0 0.5 1.7Produce brokers 2.4 2.8 1.6 2.0 1.4 0.8 1.6Housing developers 0.3 0.8 1.3 1.1 1.0 0.2 0.7

/aSubtotal (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'RINCIPALSTATISTICS IN EMPLOYMENT SIZE SEGMENTS BY SELECTED SECTORS, 1978

TSEs <------- SSEs -------…> MSEs LSEsSectors <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 6.2Road haulage 1.7 1.1 0.8 0.9 0.5 0.4 0.7Produce brokers 3.3 3.7 6.2 5.6 5.4 3.4 4.7Housing developers 1.8 (-)0.5 1.9 1.3 0.9 0.3 0.9

/aSubtotal (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 4.5Road haulage 4.6 3.2 1.6 2.0 0.9 0.7 1.3Produce brokers 1.9 2.1 1.8 1.8 0.9 0.5 1.0Housing developers 22.5 15.6 13.2 13.8 4.2 0.5 6.1

/aSubtotal (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 theabove-mentioned eight sectors.

Source: Table 3.7.1.

Table 5.2.1: PENINSULAR MALAYSIA: PERCENT DISTRIBUTION OFPRINCIPAL 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 44.3Retail trade 69.8 28.0 7.7 1.3 51.5 29.2 10.8 4.2 1.0 6.7Wholesale trade 17.5 35.1 21.7 8.9 23.3 33.3 38.4 17.4 14.4 22.1Construction 2.3 7.2 9.3 4.1 4.2 9.2 15.5 13.8 3.6 8.5Mining 0.4 4.1 8.9 6.3 2.1 2.2 7.8 9.8 6.2 6.7Road haulage 1.9 7.7 3.1 0.7 3.8 0.5 1.5 1.0 0.3 0.7Housing developers 0.4 1.1 3.5 8.1 0.9 1.2 1.9 1.1 0.4 1.0Produce brokers 5.6 3.1 2.0 1.5 4.5 7.6 5.1 10.4 2.7 5.0

/aTotal (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 59.2Retail trade 51.0 12.3 5.3 0.6 13.5 54.1 20.5 7.0 1.1 4.7Wholesale trade 18.2 22.6 9.1 3.5 12.7 34.0 33.8 20.9 7.5 12.7Construction 12.5 23.0 20.6 4.9 14.5 1.7 8.8 9.1 2.8 4.4Mining 1.8 9.1 8.2 3.7 5.8 0.5 7.2 7.7 4.3 5.1Road haulage 1.5 3.9 2.6 0.7 2.2 3.6 5.9 2.7 0.5 1.5Housing developers 0.4 1.0 1.0 0.8 0.8 0.4 1.6 3.6 8.5 6.9Produce brokers 4.8 2.0 1.9 0.8 2.0 3.4 2.4 1.9 0.8 1.2

/aTotal (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 OFESTABLISHMENTS IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978

Total Employment Size GroupSectors <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. 100.0Mining 0.6 5.6 17.6 29.1 30.8 10.9 4.7 0.6 - Neg. 100.0Rvoad 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 - 100.0Quarrying 3.2 12.1 26.8 19.5 17.9 15.3 4.7 0.5 - - 100.0Housing developers 42.7 23.7 20.0 4.9 3.9 3.0 1.4 0.4 - - 100.0Produce 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 - - 100.0Insurance 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. - 100.0Other services /f 73.9 14.5 6.6 2.2 1.4 0.8 0.3 0.2 0.1 Neg. 100.0

Total (34sectors) 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 OFPERSONS ENGAGED IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978

Total Employment Size GroupSectors <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 4.1 100.0Mining Neg. 1.0 6.8 18.5 30.0 18.6 18.1 4.4 - 2.7 100.0Road haulage 22.9 15.2 12.1 5.9 10.8 18.8 6.0 8.4 - - 100.0Bus transport 0.7 2.4 3.1 2.8 4.8 17.1 22.7 32.8 13.7 - 100.0Quarrying 0.3 2.3 10.9 13.6 18.7 30.2 20.0 4.1 - - 100.0Housing developers 7.3 12.5 21.0 9.3 11.8 16.0 15.3 6.8 - - 100.0Produce brokers /d 27.9 18.3 9.2 4.0 8.6 10.9 7.5 9.3* 4.3* - 100.0Finance companies 11.3 29.1 18.8 10.3 10.0 7.5 8.2 4.8 - - 100.0Insurance 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 - 100.0Other 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 (34sectors) 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 ADDEDIN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978

Total Employment Size GroupSectors <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 100.0Wholesale trade 9.7* 17.4* 16.0* ---19.8---- 14.8 14.0 8.2 /g - /h 100.0Construction 0.7* 6.2* 9.9* 7.1 10.8 15.7 19.8 15.3 11.6 2.9 100.0Mining Neg. 0.5 5.1 9.7 21.2 15.7 34.8 12.9 /g - /h 100.0Road haulage /i 16.8 12.0 10.6 6.1 10.6 19.1 4.9 19.8 - - 100.0Bus 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 - - 100.0Produce brokers /d 4.8 5.8 7.9 6.4* 15.1* 19.1* 17.9 15.7* 7.4* - 100.0Finance 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 100.0Other services /f /i 10.0

Total (34sectors) 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 ASSETSIN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978

Total Employment Size GroupSectors <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 - 1.1 100.0Road haulage 21.4 14.5 11.0 6.0 7.2 13.0 5.2 21.7 - - 100.0Bus transport 0.8 3.0 2.7 2.6 5.6 16.7 26.0 25.0 17.5 - 100.0Quarrying 0.1 2.7 10.2 23.1 15.5 28.4 13.9 6.0 - - 100.0Housing developers 22.0 15.1 27.4 8.6 5.0 10.6 7.7 3.6 - - 100.0Produce brokers /d 10.9 11.8 9.3 8.2 14.7 12.5 10.6 15.1* 7.1* - 100.0Finance companies 20.6 13.4 15.7 6.0 9.4 12.0 2.4 20.0 - - 100.0Insurance 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 - 100.0Other 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 --- 100.0sectors)

-------------------- Total Assets (fixed assets and stocks) ------------------

Retail trade /g 37.8 22.2 13.0 -- 8.2 -- 7.5 6.7 ------ 4.6 --------- 100.0Wholesale 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 GROSSOUTPUT IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1978

Total Employment Size GroupSectors <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 --- 100.0Wholesale trade 12.6 23.0 22.0 -- 20.9 --- 8.9 6.8 3.6 ---- 2.2 ---- 100.0Construction 0.6* 6.3* 10.6* 7.7 11.2 16.5 18.3 14.9 10.8 3.1 100.0Mining Neg. 0.8 5.7 11.9 25.1 17.0 29.0 8.8 - 1.7 100.0Road haulage 15.8 12.2 12.5 6.5 10.2 20.8 5.6 16.4 - - 100.0Bus transport 0.6 2.3 2.4 3.0 4.5 16.5 25.6 31.4 13.6 - 100.0Quarrying 0.1 1.4 8.0 9.5 16.2 32.5 27.7 4.6 - - 100.0Housing developers 13.4 12.0 20.9 13.7 8.7 9.9 14.3 7.1 - - 100.0Produce brokers /d 14.8 20.4 13.9 7.5* 11.6* 11.3* 8.7 8.0* 3.8* - 100.0Finance companies 4.2 12.8 17.3 12.2 15.4 12.3 19.5 6.2 - - 100.0Insurance 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 - 100.0Other services /f 7.7 7.0 9.1 2.5 19.3 4.4 12.5 9.5 --- 28.0 -- 100.0

Total (34sectors) 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 PRINCIPALSTATISTICS IN SELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1973

Total Employment Size GroupSectors <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 11.1 100.0Retail 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 ---- 100.0Mining 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 13.5 100.0Retail 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 10.3 100.0Retail 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 - - 100.0Wholesale 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 15.2 100.0Retail 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 --- 100.0Mining 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 OFPRINCIPAL STATIST'ICS IN SELECTED SECTORS BY

EMPLOYMENT SIZE SEGMENTS, 1978

TSEs < -- SSEs - > MSEs LSEsSectors <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. 100.0Wholesale trade 51.9 30.9 16.0 46.9 1.1 0.1 100.0Construction 16.2* 48.9* 25.1* 74.1* 8.2 1.5 100.0Mining 0.6 5.6 77.4 83.0 15.6 0.7 100.0Road haulage 66.9 19.3 11.1 30.4 2.6 0.2 100.0Housing developers 42.7 23.7 28.8 52.5 4.4 0.4 100.0Produce 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 1.3 100.0Wholesale trade 19.1 27.0 37.0 64.0 13.3 3.6 100.0Construction 2.6* 14.5* 24.2* 38,.6* 32.2 26.6 100.0Mining 0.1 1.0 55.3 56.3 36.6 7.0 100.0Road haulage 22.9 15.2 28.8 44.0 24.7 8.4 100.0Housing developers 7.3 12.5 42.1 54.6 31.4 6.8 100.0Produce 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 3.0 100.0Wholesale 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 12.9 100.0Road haulage 16.8. 12.0 27.3 39.3 24.0 19.8 100.0Housing developers 13.3 (-)3.8 47.8 44.0 31.7 10.9 100.0Produce 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 11.0 100.0Road haulage 21.4 14.5 24.2 38.7 18.2 21.7 100.0Housing developers 22.C 15.1 41.1 56.1 18.3 3.4 100.0Produce 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 PRINCIPALSTATISTICS IN SELECTED SECTORS BY EMPLOYMENT SIZE SEGMENTS, 1973

TSEs SSEs MSEs LSEs TSEs SSEs MSEs LSEsSectors <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 43.4 100.0Retail trade 93.9 4.8 1.3 0.1 - 100.0 77.0 11.7 8.0 2.4 0.9 100.0Wholesale trade 53.4 29.2 16.3 1.0 0.1 100.0 20.5 25.9 37.9 12.4 3.3 100.0Construction 16.2 43.4 29.6 9.1 1.8 100.0 2.4 11.4 25.2 32.2 28.9 100.0Mining 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 55.8 100.0Retail 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 17.5 100.0Mining 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 toSectors <10 <20 <50 <100 <200 <500 <1,000 <5,000 <10,000 >10,000 Total

Number of EstablishmentsManufacturing /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 AddedManufacturing /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 OFPRINCIPAL 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 77.2 100.0Retail trade 81.4 17.8 0.7 0.1 100.0 46.8 35.1 10.7 7.4 100.0Wholesale trade 45.2 49.5 4.5 0.8 100.0 16.1 37.5 13.5 32.9 100.0Construction 30.1 56.9 10.9 2.2 100.0 11.6 39.4 27.7 21.3 100.0Mining 10.5 62.9 20.1 6.5 100.0 3.5 25.1 24.9 46.5 100.0Road haulage 30.2 65.4 3.9 0.4 100.0 7.3 46.9 23.6 22.1 100.0Housing developers 25.1 38.0 17.9 19.0 100.0 13.6 44.0 19.7 22.7 100.0Produce brokers 74.6 22.6 2.1 0.7 100.0 16.2 21.8 35.3 26.7 100.0

/aTotal (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 87.2 100.0Retail 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 47.5 100.0Mining 5.4 46.8 25.8 22.0 100.0 0.1 15.4 22.0 62.5 100.0Road haulage 12.1 54.1 22.5 11.3 100.0 3.1 43.5 26.7 26.7 100.0Housing developers 7.7 37.4 21.9 33.0 100.0 0.1 2.5 7.6 89.9 100.0Produce brokers 39.7 29.4 16.9 14.0 100.0 3.6 22.4 23.2 51.0 100.0

/aTotal (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-mentionedeight 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 OFSELECTED SECTORS BY TOTAL EMPLOYMENT SIZE GROUP, 1973/74-1978

Total Employment Size GroupSectors <5 5-9 10-19 20-29 30-49 50-99 100-199 200-499 500-999 >1,000 Total

Number of EstablishmentsManufacturing /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 EngagedManufacturing /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 AddedManufacturing /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 AssetsManufacturing /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 ------- 12.5Wholesale 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 ------- 13.2Construction /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 OutputManufacturing /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 growthrates 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 OFSELECTED SECTORS BY EMPLOYMENT SEGMENTS, 1973/74-1978

TSEs <------- SSEs -------> MSEs LSEsSectors <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 0.8Wholesale trade 4.7 7.0 5.1 6.4 7.3 2.0 5.5Construction 11.0* 13.6 (-)1.1* 11.3* 8.8 7.4 10.9Mining (-)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*tRetail trade 0.1 1.3 4.2 2.5 27.0 11.4 1.6Wholesale trade 3.9 6.8 5.2 5.8 7.5 8.7 5.7Construction 10.0* 14.0* 7.7* 9.8* 8.6 6.8 8.6Mining (-)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 28.0Mining 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 49or less persons engaged are assumed to apply for the SSE segment. Also seefootnote /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 RATESOF 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 EstablishmentsManufacturing /a n.a. n.a. (-)0.7 0.6 4.2 8.6 9.0 13.1 18.8 25.0 3.3Retail trade /b (-)2.6 9.5 9.2 28.0 32.0 35.0 25.0 15.0 (-)19.0 19.0 0.5Wholesale trade /b (-)0.9 4.3 13.4 16.3 23.0 25.0 22.0 16.3 41.0 3.9 5.2Construction /c 13.5 8.9 11.4 11.4 22.0 19.8 30.0 --------- 44.0 ---- 14.0Mining /d (-)9.4(-)12.8 (-)11.4(-)4.3 11.4 24.0 23.0 5.3 ---- 19.6 -- -2.2

Number of Persons EngagedManufacturing /a n.a. n.a. (-)7.6 0.6 2.6 2.0 1.5 3.8 21.0 31.0 7.6Retail trade /b (-)1.6 3.4 6.4 16.2 16.0 39.0 22.0 (-)3.6 (-)25.0 35.0 2.1Wholesale trade /b (-)2.4 0.9 7.0 11.2 10.8 15.1 7.6 11.6 75.0 41.0 5.7Construction /c 8.3 5.0 6.7 3.0 10.1 4.1 15.9 --------- 44.0 -------- 9.0Mining /d (-)26.0(-)16.7 (-)14.4(-)7.1 9.1 18.8 10.1 (-)7.6 27.0 --- (-)1.9

Value AddedManufacturing /a n.a. n.a. 1.1 8.5 6.1 9.6 10.0 15.2 26.0 32.0 19.0Retail trade /b 8.9 7.4 12.7 24.0 13.6 44.0 11.7 (-)6.1 (-)49.0 80.0 11.6Wholesale trade /b 5.8 5.1 9.3 6.2 11.5 8.4 2.7 22.0 32.0 32.0 12.0Construction /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 --- 11.2Value 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 12.5Wholesale 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 13.2Construction /c 2.3 9.1 11.4 11.7 22.0 22.0 30.0 -------- 41.0 28.0Mining /d (-)17.1(-)11.8 (-)10.6(-)4.4 13.3 25.0 21.0 (-)0.1 ----- 15.7 --- 8.8

Value of Gross OutputManufacturing /a n.a. n.a. (-)0.8 4.8 3.7 8.2 7.4 16.5 21.0 40.0 20.0Retail trade /b 7.3 12.7 12.2 27.0 23.0 48.0 10.8 9.6 (-)23.0 (-)60.0 12.2Wholesale trade /b 3.6 2.5 4.3 9.7 15.2 17.0 8.4 21.0 36.0 42.0 9.9Construction /c 16.0 11.3 14.1 13.3 20.0 11.3 34.0 --------- 49.0 -------- 19.4Mining /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 INMANUFACTURING SECTOR BY EMPLOYMENT SIZE SEGMENTS AND STATES, 1973

Number of Establishments Percentages in TotalsTSEs 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 13.2Kedah 473 147 151 22 4 797 10.1 6.0 5.4 2.6 1.5 7.2Kelantan 199 74 106 40 5 424 4.2 3.0 3.8 4.7 1.9 3.8Malacca 192 126 84 18 9 429 4.1 5.2 3.0 2.1 3.4 3.9Negeri Sembilarn 193 107 96 33 8 437 4.1 4.4 3.4 3.8 3.0 4.0Pahang 263 88 92 57 11 511 5.6 3.6 3.3 6.6 4.1 4.6Pulau Penang 723 365 379 89 49 1,605 15.4 15.0 13.5 10.4 18.3 14.5Perak 814 482 502 112 34 1,944 17.4 19.8 17.8 13.0 12.7 17.6Perlis 49 25 2 1 1 86 1.0 1.0 0.1 0.1 0.4 0.8Selangor 910 708 990 335 100 3,043 19.4 29.1 35.2 39.0 37.3 27.5 0Trengganu 224 28 46 25 3 326 4.8 1.1 1.6 2.9 1.1 2.9

PeninsularMalaysia 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 INMANUFACTURING SECTOR BY EMPLOYMENT SIZE SEGMENTS AND STATES, 1973

Number of Paid Full-Time Workers Percentages in TotalsTSEs 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 15.1Kedah 386 502 2,907 2,098 1,338 7,231 10.8 5.6 5.5 2.8 1.0 2.7Kelantan 220 320 1,797 2,337 1,645 6,319 6.2 3.5 3.4 3.1 1.3 2.4Malacca 116 443 1,350 1,688 5,656 9,253 3.3 4.9 2.6 2.2 4.4 3.5Negeri Sembilan 109 378 1,741 2,645 2,401 7,274 3.1 4.2 3.3 3.5 1.9 2.7Pahang 131 321 1,841 5,004 4,025 11,322 3.7 3.6 3.5 6.6 3.2 4.2Pulau Penang 513 1,281 6,541 8,102 30,082 46,519 14.4 14.2 12.4 10.8 23.6 17.3Perak 640 1,663 9,309 9,449 16,163 37,224 18.0 18.4 17.7 12.6 12.7 13.9Perlis 73 98 190 86 770 1,217 2.1 1.1 0.4 0.1 0.6 0.5 1Selangor 824 2,891 19,503 30,365 43,959 95,542 23.2 32.0 37.1 40.3 34.4 35.6Trengganu 91 103 709 1,745 1,169 3,817 2.6 1.1 1.3 2.3 0.9 1.4 H

PeninsularMalaysia 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 OFMANUFACTURING SECTOR BY EMPLOYMENT SIZE SEGMENTS AND STATES, 1973

Value Added (M$ million) Percent in TotalsTSEs 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 12.2Kedah 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 0Kelantan 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 1.5Negeri Sembilan 1.3 1.6 9.6 55.8 36.5 104.8 4.4 2.9 2.8 7.8 3.1 4.5Pahang 1.2 1.8 12.5 47.1 27.7 90.2 4.1 3.2 3.7 6.6 2.3 3.9Pulau Penang 4.1 7.8 41.2 51.5 200.8 305.4 13.9 14.0 12.1 7.2 16.9 13.1Perak 4.5 8.1 47.1 61.9 124.4 245.9 15.3 14.6 13.8 8.7 10.5 10.6Perlis 0.5 0.5 2.2 0.2 1.1 4.5 1.7 0.9 0.6 Neg. 0.1 0.2Selangor 7.5 19.8 143.8 338.7 651.8 1,161.6 25.5 35.6 42.2 47.4 55.0 49.9Trengganu 0.6 0.5 3.0 10.8 5.0 19.9 2.0 0.9 0.9 1.5 0.4 0.9

PeninsularMalaysia 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 /Jcodes 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 Products31110/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 6331121 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 71311407i 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 11831151/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 329311537w 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 257311627T 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 144311717i 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 109311727b 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 74311907i 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 112312147;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

products31220/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 733131O77 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 9931340/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 4831400/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 Products32127/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 160321147w 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 60321207T 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 13832130/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 157322017a 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 95323307;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 12632400/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 229331117;; 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 11633112/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 4233113/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 118331207T 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 122332007i 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 /jcodes 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 Products10 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 7934200/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 8535220/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 12535231/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 3935239/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 8735591/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 166355927a 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 9361007i 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 171369107i 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 133369917i 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 Products37102/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 12838130/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 88381917;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 97381927i 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 134381937;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 8638220/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 110383107a 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 10938391/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 6938392/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 38384317;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 9838439Tc 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 116384497Ta 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 8.5.1Page 1 of 3

Table 8.5.1: PENINSULAR MALAYSIA: TOTAL EMPLOYMENT AND VALUE ADDEDIN MANUFACTURING INDUSTRIES BY EMPLOYMENT SIZE SEGMENTS, 1978

MIC Total Employment Sizecodes 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 - 9,671311217a Ice cream - 179 442 - 621 - 1,098 9,662 - 10,76031129/c Other dairy products - - 256 1,230 1,486 - - 5,392 66,949 72,340311317W Pineapples (canned) - - 140 2,181 2,321 - - 711 17,894 18,605311397W Other fruits 6 vegetables (canned/preserved) - 943 850 510 2,303 - 5,544 7,048 29,801 42,393311

40/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 - 13,910311527W Palm oil 3 251 6,184 2,600 9,038 266 1,031 368,864 144,752 520,913311537T Palm kernel oil - 750 235 234 1,219 - 15,018 2,625 3,528 21,171311597;a Vegetables & animal oil & fats - 159 87 668 914 - 1,359 2,421 31,835 35,615311627W Rice (large mills) 39 2,140 464 - 2,643 650 26,897 1,814 - 29,36131163/a Flour mills - - 96 799 895 - - 3,385 39,135 42,520311647ia Sago & tapioca - 764 313 - 1,077 - 4,874 2,373 - 7,247311697W Other grains (milled) - 92 61 - 153 - 837 1,698 - 2,535311717W Biscuits - 672 1,318 1,662 3,652 - 2,709 6,962 10,456 20,12731172Wb Bakery products - 1,728 299 - 2,027 - 5,783 1,598 - 7,380311807W Refined sugar - - 57 2,261 2,318 - - 129 85,142 85,27131190/a Cocoa, chocolate & confectionery - 311 1,252 1,180 2,743 - 1,331 19,865 12,893 34,088312117W Ice - 474 50 - 524 - 5,432 632 - 6,064312127W Coffee - 754 66 - 820 - 4,634 443 - 5,07831213/c Tea - 84 - - 84 - 400 - - 400312147a Meehoon, noodles & related products - 766 544 506 1,816 - 2,723 6,205 5 072 13,99931215/b Spices & curry powder - 320 69 - 389 - 2,564 980 - 3,54431219/a Other food products - 191 674 625 1,490 - 2,859 14,003 14,987 31,850312207a 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 - 7,94331330/c Malt liquor & malt - - - 1,369 1,369 - - - 74,218 74,218313407W 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 - 707 946 114,683 116,33632112 Dyeing, bleaching, printing & finishing of

/c yarns & fabrics 16 141 297 11,647 12,101 30 659 1,753 130,428 132,87032113/c Handicrafts 7 15 - 404 426 5 73 - 2,447 2,524321147W Batik 17 540 582 - 1,139 18 1,754 4,260 - 6,032321157W Synthetic textiles - 177 120 2,925 3,222 - 2,870 1,882 17,660 22,412321197W Miscellaneous primary textiles 4 124 243 - 371 7 774 2,482 - 3,263321207W Made-up textiles (except wearing apparel) - 128 493 774 1,395 - 1,601 2,042 2,936 6,57932130/c Knitting mills 18 775 2,599 3,518 6,910 174 4,550 16,988 25,612 47,32432140/c Carpets & rugs - 40 78 212 330 - 276 778 2,834 3,888321507W Cordage, rope & twine products - 25 - 844 869 - 24 - 6,067 6,090321907W 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 - 2,32332330/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 34,032 332,36233112/c Plywood, hard board 6 particle board - 279 922 12,404 13,605 - 1,462 14,441 108,884 124,786331137W Planing, window & door mills, etc. - 1,470 1,503 1,817 4,790 - 11,953 11,562 17,727 41,242331147W Prefabricated wooden houses - 93 129 - 222 - 531 1,146 - 1,67833119/c Other wood products 11 138 70 309 528 161 1,652 756 4,291 6,86133120/b Wooden & can containers - 1,007 348 - 1,355 - 4,480 1,271 - 5,751331907W 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 8.5.1Page 2 of 3

MIC Tstal hployment Sizecodes 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 5,937341207W Paper or paper board containers/boxes - 365 1,187 606 2,158 - 2,109 17,744 5,051 24,904341907Wi 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 4,65 9

- 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 51,913351207T Chemical fertiliters & pesticides 7 363 587 758 1,715 439 15,563 16,437 33,501 65,9393513075 Synthetic resins, etc. 8 107 374 - 489 25 438 15,182 - 15,645

351 Industrial Chemicals 30 925 1,814 1,013 3,7 8 2

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 37,054352207T Medical & pharmaceutical preparations - 358 471 958 1,787 - 3,954 2,776 11,740 18,4703523175 Soaps, washing & cleaning compounds - 126 501 852 1,479 - 568 10,121 56,051 66,7403523975 Perfumes, cosmetics & toilet preparations - 278 168 311 757 - 2,505 1,884 3,103 7,491352907Ta 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 7,275 100,410 111,570355917W Remilled latex processed rubber 12 554 6,250 4,501 11,417 74 15,711 172,979 111,761 300,52635592/a Rubber smokehouses - 141 222 570 933 - 4,885 8,760 14,396 28,041355937W Rubber footwear 2 105 470 5,486 6,063 6 1,007 2,333 26,349 29,695355997W 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 48,621369217W Cement - 52 133 1,904 2,089 - 1,691 1,463 75,278 78,4323692275 Lime & plaster - 126 123 - 249 - 1,108 611 - 1,719369917a Cement 6 concrete products - 1,084 1,749 1,374 4,207 - 8,974 22,889 42,785 74,64736992/a Cut stone & stone products - 140 52 - 192 - 1,766 391 - 2,157369997; 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 54,4103710275 Iron foundries - 1,207 1,511 1,148 3,866 - 8,758 21,688 12,926 43,3723710975 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. 1Page 3 of 3

MIC Total Employment Sizecodes 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 3,695381127W Tinsmithing - 41 - - 41 - 217 - - 217381207;a Furniture & fixtures (metal) - 209 399 253 861 - 1,487 3,864 1,850 7,201381307; Structural metal prodcuts - 1,589 1,983 668 4,240 - 12,625 17,032 8,773 38,430381917a Tin cans & metal boxes - 388 1,915 2,023 4,326 - 4,460 26,819 26,748 58,027381927W Wire & wire products - 498 1,502 506 2,506 - 6,393 24,488 11,960 42,84138193/a Brass, copper, pewter & aluminum products - 479 1,584 511 2,574 - 3,135 15,262 10,492 28,889381997ia 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 - - 4,433382207a Agricultural machinery & equipment - 399 434 - 833 - 5,372 5,749 - 11,120382307W Metal & woodworking machinery - 352 146 - 498 - 2,482 1,255 - 3,737382407; Special industrial machinery - 591 634 - 1,225 - 5,107 7,784 - 12,8923829177 Refrigerating & air conditioning equipment - 294 221 2,074 2,589 - 1,550 7,014 53,000 61,564382997W 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 13,82138320/a Radio, television & communicationequipment & apparatus - 202 3,019 50,376 53,597 - 2,095 27,514 440,459 470,06738

3 30/c Electrical appliance & housewares 2 71 289 491 853 6 635 4,072 9,023 13,73838391/a Cables & wires - 130 620 1,103 1,853 - 1,158 17,652 17,155 35,965383927/ Dry cells & storage batteries 12 281 441 746 1,480 35 2,394 11,091 11,935 25,454383937W Electric lamps & tubes - 74 163 234 471 - 358 3,003 597 3,9583

8 399/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 27,495384317W Motor vehicle bodies (only) - 699 523 - 1,222 - 7,533 4,722 - 12,255384327W Motor vehicles (manufactured/assembled) - 30 82 5,774 5,886 - 307 3,309 70,906 74,52138 4 3

9/c Motor vehicle parts & accessories 7 454 1,381 - 1,842 96 4,069 11,360 - 15,526384417; Motorcycles & scooters 6 73 165 474 718 20 8,414 634 15,256 24,323384 4

9/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 18,65738520/c Photographic & optical goods - - 85 1,633 1,718 - - 332 12,702 13,034385307W 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

39

010/c Jewelry & related articles - - - 205 205 - - - 2,179 2,179390207W Musical instruments - 22 - 289 311 - 322 - 5,184 5,507390

30/c Sporting & athletic goods - 37 56 - 93 - 114 1,128 - 1,2433

9091/a Brooms, brushes & mops - 61 73 - 134 - 452 565 - 1,0173909

2/c Pens, pencils, office & artist supplies 3 103 399 659 1,164 10 1,510 1,342 3,950 6,8143909977- 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 ZIQLOTENTAND VALUE ADED IN NIIUFACTURING SCTOl BY rIDA1ST2IAL DIVISIONS

AND ILOTElNT SIZE SEG1ENT, 1978 /a

MIC Total nuber of psrsona d_ Value addedcodes 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 26.032 Textiles, wearing apparel & leather 9.4 7.6. 19.2 14.2 4.7 2.9 11.7 8.133 Wood & wood products 19.5 20.5 10.2 14.7 21.6 14.1 5.9 10.434 Paper & paper products; printing &

publishing 9.2 6.6 3.9 5.6 8.6 4.5 4.1 4.835 Chemical, petroleue, coal, rubber &

plastic products 11.6 17.8 13.9 14.6 17.6 25.5 18.7 20.836 Nonmetallic mineral products except

petroleum & coal 5.6 5.7 3.7 4.6 4.6 3.5 6.1 5.138 Basic metal products 2.9 2.4 2.2 2.4 2.9 3.1 3.2 3.138 Fabricated metal products 19.5 19.4 34.9 27.9 19.6 14.4 25.4 21.239 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 materialsNo 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 GroupLess 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 GrowthGrowing 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 GroupLess 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-SCALEENTERPRISES 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 privateindividuals 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 90.9Of which:Building and construction 9.6 8.5 9.8 13.9 10.1Sundry retail trade 8.0 8.9 12.2 14.9 12.7

General commerce 11.3 10.6 14.1 12.5 13.9Transport and motor repair 12.8 9.0 10.8 11.2 12.1

Small-scale industries 9.9 9.5 12.8 14.0 10.9Of which:Food, drinks and tobacco 2.2 2.0 2.8 3.1 2.1Timber products and furniture 1.5 2.0 2.5 2.2 1.7

Textiles and clothing 0.9 1.3 1.9 1.6 1.4Building materials 1.3 1.1 1.3 3.0 2.2Printing and publishing 1.5 0.7 1.1 1.1 0.6

Agriculture 12.4 15.1 19.9 27.6 22.5Of which:Padi cultivation and marketing 3.1 3.5 2.9 5.2 4.9Livestock 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-SCALEENTERPRISES 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, realestate and businessservices 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 INDUSTRIALDEVELOPMENT FINANCE BERHAD, AS OF DECEMBER 31, 1976-80

(Amount in M$ million)

1976 1977 1978 1979 1980Sectors/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 transportequipment 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 BANKMALAYSIA 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.