Standards contributes positively to Malaysia’s economy

Transcription

1. Article 1 /2016 ©Department of Standards Malaysia ___________________________________________________________________________ Standards contributes positively to Malaysia’s economy The Department of Standards Malaysia (Standards Malaysia) has completed a Study on Economic Impact on the Usage of Standards for the Electrical and Electronics (E&E), Food and Beverages (F&B) and Agriculture in July 2016. The sectors were selected as they are among the key sectors which contributed significantly to the Malaysian economy. This article summarises the macroeconomic findings of the studies. Figure 1 - Sectors and elements covered for the study Note- MSIC- Malaysia Standards Industrial Classification published by Department of Statistics Malaysia.
2. Article 1 /2016 ©Department of Standards Malaysia ___________________________________________________________________________ The study confirmed that standards contributed significantly to the total factor productivity (TFP) of the country for the three sectors. Using the Malaysian Input-Output Tables 2005 and 2010 published by Department of Statistics Malaysia (DOS), the standards input has shown positive contribution to the growth of). Within the three selected sectors, standards contribute the highest for the E&E sectors (0.15%) followed by F&B (0.08%) and Agriculture (0.02%). The details are as depicted in Figure 2. Figure 2 - Standards contribute positively to the Total Factor Productivity (TFP) of the country The study also reveals a strong and positive relationship between standards and economic performance. A 1% increase in standards will increase the GDP by 0.02% (for E&E), 0.26% (for F&B) and 0.06% (for Agriculture) as in Figure 3. Contribution of standards to the GDP growth in each sector are as per Figure 4. Standards contribute significantly to the growth of GDP in E&E, F&B and Agriculture Figure 3 - Contribution of Standards to Gross Domestic Product (GDP) (2001-2013) Figure 4 - Contribution of standards to GDP growth
3. Article 1 /2016 ©Department of Standards Malaysia ___________________________________________________________________________ The findings of the study are consistent with other similar econometric studies conducted in Germany, Canada, Australia, New Zealand, United States and France although in Malaysia the study was conducted for E&E, F&B and Agriculture only. Figure 5- Comparative summary of similar econometrics analysis In conclusion, there is a strong and positive relationship between standards and Malaysia’s economic performance. Note : The scope of study also covers microeconomics studies on the use of standards by government agencies and the industries. For more information in the study please email central@jsm.gov.my .