Second National Statistical Conference, MyStats 2013

Sasana Kijang, Bank Negara Malaysia, Kuala Lumpur

18 November 2013

Introduction

• The Department of Statistics, Malaysia (DOSM) was established 64

years ago and was formerly known as Bureau of Statistics, operating

under the Statistics Ordinance 1949

• In 1965, the name Bureau of Statistics was changed to the• In 1965, the name Bureau of Statistics was changed to the

Department of Statistics, Malaysia (DOSM), under the provisions of

the Statistics Act 1965 (Revised 1989)

Introduction (cont’d)

• DOSM has played a crucial role in collecting, interpreting and

disseminating national statistics towards establishing a quality,

user-oriented and timely information system for the

formulation of policies for national development planning and

administration

• The programmes of strengthening the statistical compilation

were embedded in the DOSM Strategic Plan 2010-2014

(DOSM-SP 2010-14)

• The continuous updating of DOSM activities in strengthening

statistical compilation.

2.1 Improving and Updating Business Registrar

2. Strengthening Statistical

Compilation

2.1 Improving and Updating Business Registrar

2.2 Updating the Statistical Compilation Manual/References

2.3 Updating the Classifications

2.1 Improving and Updating

Business Registrar

• In 1998, DOSM built a Central Register System (CRS)

• Contains a profile of active establishments

• Collaboration :

– Companies Commission of Malaysia (CCM)

– Employees Provident Fund (EPF) – Employees Provident Fund (EPF)

– Construction Industry Development Board (CIDB)

– TM Smart Map

2.2 Manual References

• DOSM regularly updates its statistical compilation manual or

references:

– Migrated from System of National Accounts (SNA) 1968 to SNA

1993 and then to SNA 2008 as recommended by the United

Nation

– DOSM has implemented the SNA 2008 commencing 2010– DOSM has implemented the SNA 2008 commencing 2010

• The SNA is a source of reference for producing the following

products:

− The Gross Domestic Product

− The Supply Use and Input Output Tables

− The Distribution & Use of Income Accounts and Capital Account

2.3 Classifications

• The rapid changes in economic structure within the country and

globally has reflected in the changes in the industrial and products

structure

• DOSM has updated the industrial and commodity classifications in

line with the recommendation of the United Nationsline with the recommendation of the United Nations

• The latest industrial classification for Malaysia that has been

updated by DOSM is Malaysia Standard Industrial Classification

2008 which is in conformity to the International Standard Industrial

Classification (ISIC) Rev. 4

• The previous industrial classification was MSIC 2000 which is in

conformity to ISIC Rev.3

2.3 Classifications (cont’d)

• DOSM also updating the commodity classification as

recommended by the United Nations

• The latest commodity classification for Malaysia that has been

updated is the Malaysia Classification of Products by Activity updated is the Malaysia Classification of Products by Activity

2009 which is in conformity with classifications of the Central

Products Classification (CPC) Version 2.0 and ISIC Rev. 4

• The previous commodity classification for Malaysia was

MCPA 2005 which conformed to CPC Version 1.0 and ISIC

Rev 3.0

2.3 Classifications (cont’d)

• The new classifications were used in the surveys/censuses for

reference year beginning from 2009

• The old industrial and commodity classifications were used in • The old industrial and commodity classifications were used in

the surveys/censuses from 2000 to 2008

3. Usage of Relevant Statistics

• As stipulates in its role, DOSM is consistently updating its

products towards establishing a quality and user-oriented

information. The recent products that are under development are

as follows:

3.1 The Malaysia’s Early Warning Signals/Business Cycle

Clock

3.2 The Input-Output Tables

3.3The System of Environmental-Economic Accounting

(SEEA)

3.1 The Malaysia’s Early

Warning Signals/Business

Cycle Clock

Above Trend

1st Quadrant 4th Quadrant

Below trend

3rd Quadrant2nd Quadrant

dec

rease

d

incr

ease

d

Source:Ruth et al (2006)

Retail Sales Index

Industrial Production

Index

Employment, Mfg

Real Salaries & Wages,

MfgCapacity Utilization,

Mfg

R

S

IP

E

M

S

W

C

U

ExpansionDownturn MALAYSIA BUSINESS

CYCLE CLOCK

M

1E

M

OCTOBER 2008

COINCIDENT INDEXLEADING INDEX

Mfg Real Money Supply,

M1Housing Permits,

ApprovedReal Imports,

SemiconductorsNew Company

RegisteredReal Imports of Basic

Precious Bursa Malaysia,

Industrial

Expected Sales, Mfg

U

M

1

H

P

IS

C

R

IB

B

M

ESRecession Recovery

1

H

P

IS

C

R

IB

B

M

ES

R

S

IP

M

S

W

C

U

Retail Sales Index

Industrial Production

Index

Employment, Mfg

Real Salaries & Wages,

MfgCapacity Utilization,

Mfg

R

S

IP

E

M

S

W

C

U

ExpansionDownturn MALAYSIA BUSINESS

CYCLE CLOCK

M

1

H

P

IS

B

MES

R

S

IP

E

M

S

W

C

U

OCTOBER 2010

COINCIDENT INDEXLEADING INDEX

Mfg Real Money Supply,

M1Housing Permits,

ApprovedReal Imports,

SemiconductorsNew Company

RegisteredReal Imports of Basic

Precious Bursa Malaysia,

Industrial

Expected Sales, Mfg

U

M

1

H

P

IS

C

R

IB

B

M

ESRecession Recovery

C

R

IB

3.2 The Input-Output Tables

• DOSM is currently working on the Benchmark Input-Output (I-O) Tables for reference year 2010

• It is expected to be published in early 2014

• DOSM is also developing the Annual Update I-O Tables for reference year 2007, 2008 and 2009

• In the pipeline, DOSM is also developing the Benchmark Regional I-O Tables for Peninsular Malaysia, Sabah and Sarawak

The Framework of Benchmark

Regional Input-Output Tables

Intermediate Demand (A) Final Demand

Inter-Regional IO

P. M

ala

ysia

Sab

ah

Sara

wak

P. M

ala

ysia

Sab

ah

WP

Lab

uan

Dis

cre

pen

cy

To

tal O

utp

uts

(AP) (AS) (AK) (FP) (FS) (FK)(QX) (XX)

P. Malaysia(AP) APP APS APK FPP FPS FPK QP XP

Sabah(AS) ASP ASS ASK FSP FSS FSK QS XS

Sarawak(AK) AKP AKS AKK FKP FKS FKK QK XK

Imports from ROW (MW) MP MS MK

Taxes less subsidies (TT) TP TMS TK

Value Added (VV) VP VS VK

Total Inputs (XX) XI XM XU

• DOSM has started to develop the SEEA based on the old version of the SEEA Manual (Integrated Environmental-Economic Accounting 2003). However, the old manual has been updated in 2012 (System of Environmental-Economic Accounting Central Framework 2012)

• DOSM is currently improving the compilation of the SEEA

• The SEEA links to environment, economic and social statistics

3.3 System of Environmental-

Economic Accounting

• The SEEA links to environment, economic and social statistics

Sustainability

I. Improving access to services and

resources

II. Managing supply and

demand

III. Improving the state of

environment and reducing impacts

IV. Mitigating risks and

adapting to extreme events

3.4 Upgrading Existing Products

• DOSM is innovating and upgrading its existing products

such as:

– GDP by States

– GDP by Income Approach

– Tourism Satellite Account– Tourism Satellite Account

– ICT Satellite Account

– Index of Services

– CPI by States and Core Inflation

3.4.1 Gross Domestic Product

(GDP)

• DOSM has successfully disaggregated the annual GDP into

15 regions, namely GDP by States

• DOSM has also implemented the income approach in the • DOSM has also implemented the income approach in the

measurement of GDP, as a complement to the production and

expenditure approaches

3.4.2 The Satellite Accounts

• The Tourism Satellite Account (TSA)

– To demonstrate the contribution of tourism sector to

GDP

• ICT Satellite Account• ICT Satellite Account

– To monitor the performance of ICT sector and attain

evidence-based decision making on the formulation of

ICT policies

Index of Services (IoS)

• Measures changes over time in the volume of output of the

services sector

Q4 2012

• Transportation and Storage

• Information and Communication

• Accommodation

• Food & Beverage

Q1 2013

• Private Health

• Private Education

Q3 2013

• Finance and Insurance

2014

• Real Estate

• Professional

• Art, Entertainment & Recreation

Consumer Price Index (CPI)

and Core Inflation• CPI

– Represents the expenditure pattern of all households in

Malaysia in a specified time period

– In January 2011, DOSM successfully produced the CPI

based on four zones namely North, South, East and West based on four zones namely North, South, East and West

Peninsular Malaysia

– DOSM is planning to publish CPI for 15 states in Malaysia

in 2014

• Core Inflation

– Exclude items that have high volatility

– In 2013, DOSM has started compiling CI data based on

expenditure class and items

Conclusion

• Continuous steps and measures have been implemented by DOSM in

strengthening the statistical compilation by improving and updating

business registrar as well as manual references and classifications

• DOSM also improving the statistical methodology and enhancing the

products to stand at par at the international levelproducts to stand at par at the international level

• It has begun innovating new main products, namely the Malaysia’s

Early Warning Signals, Updating Input-Output Tables and the System

of Environmental-Economic Accounting

• DOSM is also upgrading its existing products such as GDP by States,

GDP by Income Approach, CPI by States and Core Inflation, Index of

Services as well as producing the satellite accounts for Tourism and

ICT

THANK YOUTHANK YOU

Abd. Latib Talib

Economic Indicators Division

Department of Statistics Malaysia

latib@stats.gov.my