Malaysian manufacturing sector sees increasing productivity growth and efficiency trends.
The Malaysian manufacturing sector is important for the economy, but productivity levels have not reached their best. A study analyzed data from 1985 to 2000 to look at technical efficiency, technological change, and total factor productivity (TFP) growth. The results show that TFP growth is increasing, mainly due to technical efficiency. Technological change is also on the rise. Industries like food, wood, chemical, and iron products have high technical efficiency, while the textile industry has more technical progress than efficiency.