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Saturday, 11 July 2020|

National Accounts

  1. What is Gross Domestic Product (GDP)?
    GDP is a measure of the total value of production of all resident producing units of a country in a specified period, before deducting allowances for consumption of fixed capital. A producing unit is considered as resident in a country if it retains its central economic interest in the economic territory of that country. The economic territory of a country consists of the geographic territory administered by a government within which persons, goods and capital circulate freely. GDP can be measured by using three approaches namely production approach (the sum of value added), expenditure approach (the sum of final expenditure) and income approach (the sum of incomes distributed by resident producer unit).
  2. How is GDP measured?
    There are three ways of measuring GDP:
    1. GDP based on production approach (also known as value added approach) is the summation of value added, that is total differences between gross output value of resident producing unit (measured at producer price) and value of intermediate consumption (measured at purchaser’s price) plus import duties. The difference between gross output and intermediate consumption is value added. This approach shows the contribution of individual economic activities on overall GDP.
    2. GDP based on expenditure approach is the summation of Private Final Consumption, Government Final Consumption, Gross Fixed Capital Formation, Changes in Inventories and Valuables, Exports of goods & services minus Imports of goods & services. These are termed as `final demand’ or ‘final expenditure’ categories. This approach measures value of goods and services used by final users on goods and services produced by resident.
    3. GDP based on income approach is the summation of all incomes accruing the production in economy. The income components are Compensation of Employees (i.e. salaries & wages), Gross Operating Surplus (i.e. operating surplus & mixed income) and Taxes less Subsidies on Production and Imports.
  3. What is GDP by State?
    GDP by State is a compilation of GDP which covers 13 states and 2 Federal territories in Malaysia. The compilation is only produced at annual basis by using the production approach and it is measured at 2010 constant prices.
  4. What are the international standards adopted for the compilation of National Accounts statistics?
    System of National Accounts (often abbreviated as "SNA") is an international statistical standard for national accounts, adopted by the United Nations Statistical Commission (UNSC). The first international standard is being published in 1953. Manual have been released for the 1968 revision, the 1993 revision, and the 2008 revision.
  5. What is the detailed information available for GDP?
    The Department of Statistics Malaysia (DOSM) publishes GDP data for quarterly and annual basis by production and expenditure approaches at current and constant prices. Seasonal adjustment data is also published for quarterly publication. Meanwhile, GDP by income approach is compiled at current prices on annual basis.

    On the production side, the details of GDP data are available by economic activities such as:

    • agriculture,
    • forestry and fishing;
    • mining and quarrying;
    • manufacturing
    • electricity, gas and water;
    • construction
    • wholesale and retail trade
    • restaurants and accommodation
    • transport, storage
    • communication;
    • finance, insurance,
    • real estate and business services;
    • other services;
    • government services;
    • import duties;

    For the expenditure side, the GDP data are detailed into expenditure categories such as:

    • government final consumption expenditure;
    • private final consumption expenditure;
    • changes in inventories;
    • gross fixed capital formation;
    • exports of goods and services;
    • imports of goods and services;

    Meanwhile, GDP by income approach covers:

    • compensation of employees,
    • gross operating surplus
    • taxes less subsidies on production and imports.

  6. What is the objective of Tourism Satellite Account (TSA) compilation?
    The objective of TSA compilation is to analyse in detail all the aspects of demand for goods and services associated with the activity of visitors; to observe the interactions with the supply of such goods and services of tourism within the economy; as well as with other economic activities within or outside Malaysia. TSA initiated in 2003 and Domestic Tourism Survey (DTS) conducted in 2006.

    This satellite information focuses on a particular aspect of the economy for example contribution of tourism to the nation. It also permits further linkages to additional information specific to tourism such as employment, overseas tourist numbers and accommodation occupancy statistics. Tourism consists of industries such as transportation, accommodation, food & beverage service activities, recreation, entertainment and travel agencies.

    The compilation on Tourism Satellite Account (TSA) of Malaysia are based on Tourism Satellite Account: Recommended Methodological Framework (TSA: RMF) 2008 and International Recommendations for Tourism Statistics (IRTS) published by the United Nations World Tourism Organization (UNWTO). The concepts and definitions of TSA are adapted and synchronized according to Malaysia’s need.

    Based on the manual of TSA: RMF 2008, Malaysia’s TSA comprises of seven main tables, there are:

    Table 1: Inbound tourism expenditure by products and classes of visitors
    Table 2: Domestic tourism expenditure by products and classes of visitors
    Table 3: Outbound tourism expenditure by products and classes of visitors
    Table 4: Internal tourism consumption by products
    Table 5: Production accounts of tourism industry
    Table 6: Total domestic supply and intern
    Table 7: Employment in the tourism industry

  7. What is the brief explanation about Information and Communication Technology Satellite Account (ICTSA)?
    Information and Communication Technology Satellite Account (ICTSA) of Malaysia focuses on a particular aspect of the economy for example contribution of ICT to the nation. It also permits further linkages to additional information specific to ICT such as income, exports, imports and employment. ICT consists of industries such as manufacturing, trade, services and content & media industries.

    The basis of ICTSA compilation in Malaysia is the framework of supply and use tables (SUT). However, it only focuses on ICT products and industries. The supply table indicates the goods and services of ICT products that are supplied by each producer. Meanwhile, use table tracks the usage of those products by industries, government, households and exports.

    Supply of each product (valued at purchasers’ prices) consists of;

    • Domestic production by industry (valued at basic prices);
    • Imports;
    • Transport, retail and wholesale trade margins; and
    • Taxes less subsidies on production and imports.

    Use of each product (valued at purchasers’ prices) consists of:

    • Intermediate use by industries (products that are consumed by industries in the process of producing other products); and
    • Final use by type of expenditure. Final use includes consumption by households and government, products that have been capitalised, changes in inventories and exports.

    A comprehensive use table includes primary inputs of production namely compensation of employees, gross operating surplus and other taxes less subsidies on products and production for each industry.

    Information and Communication Technology Satellite Account (ICTSA) of Malaysia is based on the System of National Accounts 2008, OECD Guide to Measuring the Information Society 2011 and OECD Internet Economy Outlook 2012. The concepts and definitions are adapted to Malaysia’s requirement.