The construction sector recorded the highest productivity growth in the October-December period at 4.3% against 1.6% in 3Q19

by ALIFAH ZAINUDDIN/ pic by TMR FILE

MALAYSIA’S labour productivity as measured by value added per hour worked was up 1.5% year-on-year (YoY) in the fourth quarter last year (4Q19) as hours worked increased.

Total hours worked for the quarter grew by 1.5% to 8.82 billion from 8.79 billion the previous quarter, raising the labour productivity level to RM42 from RM41 per hour, based on data released by the Statistics Department yesterday.

Labour productivity expressed in terms of value added per employment, on the other hand, grew 1.4% in 4Q19 from 2.3% in 3Q19 as employment increased 2.2% versus 2.1%.

“By dividing this volume with the total number of employment, there has been a downward trend in average hours worked. During this quarter, Malaysia’s GDP grew 3.6% after registering 4.4% in 3Q19,” chief statistician Datuk Seri Dr Mohd Uzir Mahidin said in a statement.

The construction sector recorded the highest productivity growth in the October-December period at 4.3% against 1.6% in 3Q19. Productivity in the services and manufacturing sectors, the two largest contributors to the Malaysian economy, posted slower growth of 2.5% and 1.2% respectively from 2.9% the previous quarter.

Meanwhile, labour productivity for the mining and quarrying sector contracted by 0.3% during the quarter, in addition to agriculture which declined by 5.8%.

Overall, Malaysia’s labour productivity by value added per hour worked increased 2.2% in 2019 with a value of RM41 per hour. Growth of labour productivity by value added per employment remained at 2.2% with a value of RM93,909 per person.

To compare, Malaysia’s labour productivity by value added per hour worked accelerated at a rate of 3.4% in 2018 with a value of RM40 per hour. Growth of labour productivity by value added per employment stood at 2.2% with a value of RM91,932 per person.

Malaysia’s industrial production index grew 0.3% in October last year, its slowest pace in six years, dragged by a 5.8% decline in mining output. Growth in manufacturing and electricity also moderated to 2.2% and 0.5% YoY during the month.

Factory output, however, rebounded in the two subsequent months to 2% and 1.3% respectively. The manufacturing sector grew at its fastest pace in four months in December at 3.4% from 2.5% in November, while growth in electricity slowed to 0.9% from 1.6% over the same period.

The moderate growth in overall productivity was flagged by a deceleration in GDP in 4Q19 which eased to its weakest in a decade on weaker external demand amid the US-China trade war.