Value Addition and Labour Productivity in the Malaysian Furniture Industry Between 1986 and 2004

The Malaysian furniture industry is the most important sub-sector within the wood-based industry, yet its growth is a matter of intense debate. On a general basis, it is argued that the Malaysian furniture industry is a low wage economy, producing low quality furniture. Therefore, this study aims...

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Main Author:	Chong, Yen Yoon
Format:	Thesis
Language:	English English
Published:	2009
Subjects:	Furniture industry and trade - Capital productivity - Malaysia Labor productivity - Malaysia
Online Access:	http://psasir.upm.edu.my/id/eprint/10171/1/FH_2009_15_A.pdf
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id	my-upm-ir.10171
record_format	uketd_dc
spelling	my-upm-ir.101712013-05-27T07:45:11Z Value Addition and Labour Productivity in the Malaysian Furniture Industry Between 1986 and 2004 2009 Chong, Yen Yoon The Malaysian furniture industry is the most important sub-sector within the wood-based industry, yet its growth is a matter of intense debate. On a general basis, it is argued that the Malaysian furniture industry is a low wage economy, producing low quality furniture. Therefore, this study aims: (1) to compare the performance of the furniture industry during the periods of the first and second Industrial Master Plans (IMP) of Malaysia, (2) to identify the trend in labour productivity, expressed as the ratios, during the same period, and (3) to quantitatively study the relationship between labour productivity and value addition in the furniture industry. Secondary published data on the furniture industry were collected mainly from the Department of Statistics Malaysia (DOS), for the period 1986 to 2004. A set of productivity indicators such as value added, labour productivity ratio, and capital productivity ratio were used in the analysis, as suggested by the National Productivity Corporation (NPC) Malaysia. During 1986 – 2004, value addition in the furniture industry grew steadily from RM 85 million to RM2,536 million, and labour productivity recorded a positive growth trend from 1990 (RM12,900) to 2004 ((RM32,400). The results showed that there was a positive trend in annual gross output and cost of input, which increased by about RM524 million annually and RM369 million annually, respectively, but the value addition and labour productivity were still low. The continuous growth of output was largely due to the increased number of factories, workforce and gross inputs. However, from the increasing cost of inputs, especially the labour cost and raw materials cost, the Malaysian furniture industry remains low in value addition. It confirms that the Malaysian furniture industry is still a mass producer of commodity-type furniture. This study provides evidence to support the argument that the industrial growth in the Malaysian furniture industry has been driven primarily by incremental input factors. Furniture industry and trade - Capital productivity - Malaysia Labor productivity - Malaysia 2009 Thesis http://psasir.upm.edu.my/id/eprint/10171/ http://psasir.upm.edu.my/id/eprint/10171/1/FH_2009_15_A.pdf application/pdf en public masters Universiti Putra Malaysia Furniture industry and trade - Capital productivity - Malaysia Labor productivity - Malaysia Faculty of Forestry English
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English English
topic	Furniture industry and trade - Capital productivity - Malaysia Labor productivity - Malaysia
spellingShingle	Furniture industry and trade - Capital productivity - Malaysia Labor productivity - Malaysia Chong, Yen Yoon Value Addition and Labour Productivity in the Malaysian Furniture Industry Between 1986 and 2004
description	The Malaysian furniture industry is the most important sub-sector within the wood-based industry, yet its growth is a matter of intense debate. On a general basis, it is argued that the Malaysian furniture industry is a low wage economy, producing low quality furniture. Therefore, this study aims: (1) to compare the performance of the furniture industry during the periods of the first and second Industrial Master Plans (IMP) of Malaysia, (2) to identify the trend in labour productivity, expressed as the ratios, during the same period, and (3) to quantitatively study the relationship between labour productivity and value addition in the furniture industry. Secondary published data on the furniture industry were collected mainly from the Department of Statistics Malaysia (DOS), for the period 1986 to 2004. A set of productivity indicators such as value added, labour productivity ratio, and capital productivity ratio were used in the analysis, as suggested by the National Productivity Corporation (NPC) Malaysia. During 1986 – 2004, value addition in the furniture industry grew steadily from RM 85 million to RM2,536 million, and labour productivity recorded a positive growth trend from 1990 (RM12,900) to 2004 ((RM32,400). The results showed that there was a positive trend in annual gross output and cost of input, which increased by about RM524 million annually and RM369 million annually, respectively, but the value addition and labour productivity were still low. The continuous growth of output was largely due to the increased number of factories, workforce and gross inputs. However, from the increasing cost of inputs, especially the labour cost and raw materials cost, the Malaysian furniture industry remains low in value addition. It confirms that the Malaysian furniture industry is still a mass producer of commodity-type furniture. This study provides evidence to support the argument that the industrial growth in the Malaysian furniture industry has been driven primarily by incremental input factors.
format	Thesis
qualification_level	Master's degree
author	Chong, Yen Yoon
author_facet	Chong, Yen Yoon
author_sort	Chong, Yen Yoon
title	Value Addition and Labour Productivity in the Malaysian Furniture Industry Between 1986 and 2004
title_short	Value Addition and Labour Productivity in the Malaysian Furniture Industry Between 1986 and 2004
title_full	Value Addition and Labour Productivity in the Malaysian Furniture Industry Between 1986 and 2004
title_fullStr	Value Addition and Labour Productivity in the Malaysian Furniture Industry Between 1986 and 2004
title_full_unstemmed	Value Addition and Labour Productivity in the Malaysian Furniture Industry Between 1986 and 2004
title_sort	value addition and labour productivity in the malaysian furniture industry between 1986 and 2004
granting_institution	Universiti Putra Malaysia
granting_department	Faculty of Forestry
publishDate	2009
url	http://psasir.upm.edu.my/id/eprint/10171/1/FH_2009_15_A.pdf
_version_	1747811062476963840

Value Addition and Labour Productivity in the Malaysian Furniture Industry Between 1986 and 2004

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