LABOUR AND PRODUCTIVITY

How Investment In Machinery and

Equipment can Increase Productivity in
Malaysian Perspectives
NAME

MATRIC NO

NURUL ZAHIDAH BINTI AB KADIR

BB13110459

SITI NUR HAJAR BINTI MAHADI

BB13110549

TUAN SHARIFAH NUR SHAHIRAH BINTI TUAN

KECIL
JUSLIADI BIN ABD TALIB

BB13110603
BB13110191

Machinery & Equipment Industries

ThegovernmenthasidentifiedtheM&Eindustry
to be one of the key areas for growth and
development.
Thegrowthwillfocusonthemanufactureofhigh
value-addedandhightechnologyM&E.
Theindustrycancategoriseasfollowed:
a)Powergeneratingmachineryandequipment.
b)Metalworkingmachinery.
c) Specialise process machinery or equipment for
specificindustry.
d)General industrial machinery & equipment,
componentsandparts.

a) Power Generating Machinery and

Equipment
It is mainly comprises boilers, condensers,
electricgeneratingsets,turbinesandengines.
Main activities involve engineering design,
fabrication,assemblyandtesting.
Most of the boilers manufactured cater for the
local demand from the various industries,
rangingfromoil&gas,petrochemicals,foodand
beverages, palm oil, rubber, wood, textile and
hospitals.

b) Metalworking Machinery
Presentsvastopportunitiesinthemanufactureof
M&E,suchaslasercuttingmachines,machining
centers,electro-dischargemachineandothers.
Several Malaysia and Malaysian/ Foreign joint
venturecompaniesarecurrentlyundertakingthe
manufacturing of metalworking supporting
sectors.
There is great potential for the manufacturing of
this metalworking machinery with its emphasis
onhightechnology.

c) Specialized/Process M&E for specific

Industries
Specificallydesignforuseinaparticularindustry
orprocess.
Industries targeted include food and beverages,
woodworking, pulp and paper, agricultural,
automotive, medical, biotechnology, oil & gas
processingandetc.
M&E manufacturers have the advantages of
producing machines at competitive prices and
benefit from the close proximity to clients for
back-upservicesandafter-salesservice.

d) General Industrial M&E, components

and Parts
Covers a broad category of product such as airconditioning plants, cold random equipment,
elevators,cranes,pumps,weldingmachines,etc.
The engineering supporting industries essentially
cater to the needs of the electrical & electronics
andautomotiveindustries.
The current focus on the growth of the M&E
manufacturing,aerospace,medical equipment and
devicesindustriesindicatesapotentiallyincreasing
demand for precision components, parts and
modules.

ApprovedInvestmentintheM&EIndustrybysubsectorin2012

Export of sub sectors of M&E

Import of sub sectors of M&E

Why Machinery & equipment Important

M&E plays as an intricate role in the
development of long-term social and financial
welfarethroughitsimpactonproductivitygrowth.
Advance M&E has the ability to stimulate a
number of variables that directly contribute to
productivity such as labour and related skills,
R&D,competitionandinnovation.
M&E can influence labour by requiring higher
skilledworkersforoperationanddevelopment.

 M&E and R&D individually

influence the outcome of
productivity.
Competition and innovation
arefactoraswell.
Investment in M&E is a
principle
source
of
productivity growth, both
through its direct labouraugmenting
effect
and
throughitsinducedimpacton
innovation.
A change in M&E investment
from a number manufacturing
firm
directly
affects
productivity by changing the
overall level capital intensity
ofMFP.
The relationship between
M&E and labour productivity
is in fact strong, positive and
highlyinfluenceinCanada.

Example in Canada

The End