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Informal Sector in Malaysia

10 JUNE 2009. RAZAMAN RIDZUAN & SALMIAH PONGGOT. Informal Sector in Malaysia. DEPARTMENT OF STATISTICS, MALAYSIA. 1. Department of Statistics, Malaysia. Please refer to attachment 1. 2. National Accounts Division. 36 Officers 57 Supporting Staff.

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Informal Sector in Malaysia

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  1. 10 JUNE 2009 RAZAMAN RIDZUAN & SALMIAH PONGGOT Informal Sector in Malaysia DEPARTMENT OF STATISTICS, MALAYSIA

  2. 1. Department of Statistics, Malaysia Please refer to attachment 1

  3. 2. National Accounts Division 36 Officers 57 Supporting Staff

  4. 3. Contribution of Informal Sector to GDP • No specific survey on informal sector and estimated using an indirect method. • Using Gross Domestic Product (GDP) and Mixed Income (MI). - ratio of MI to GDP provide estimates of the contribution of informal sector to GDP.

  5. Table 1: Contribution of Mixed Income to the GDP, Malaysia 2000-2005 Source: Distribution and Use of Income Accounts and Capital Account.

  6. 4. Historical Background • Pre-2004 No official information on informal sector. • 2004 Pioneer study was done for testing the data collection method. • 2006 Pilot test covers the whole of Malaysia. (Aug,Sept,Oct). • Informal Sector Survey will be undertaken regularly starting August 2009.

  7. 5. Definition of Informal Sector in Malaysia • Not registered with Companies Commission of Malaysia; All or at least one product of services is for sale or barter transaction; • Employs 10 workers or less and workers are not covered by social security; and • Involves in non agricultural activities.

  8. 6. 2006 Pilot Survey on Informal Sector Concept & Approach • Informal sector concept is based on the concept accepted by the 15th I ICLS 1993 and 17th ICLS 2001 with reference made to SNA 1993. • Using Household Approach.

  9. 6. 2006 Pilot Survey on Informal Sector (Cont.) Scope & Coverage • Geographically covers urban & rural in each state in Malaysia. • Respondent s are those who reside permanently in private dwelling, ≥ 15 years age group, working in non-agriculture sector and not working with the government. • Covered 3,168 enumeration blocks (approximately 25,344 households).

  10. 6. 2006 Pilot Survey on Informal Sector (Cont.)

  11. 7. Findings: No. Involved in Informal Sector From The Total Samples (Cont.)

  12. 7. Findings: Distribution of Informal Sector By Region (Cont)

  13. 7. Findings: Distribution of Informal Sector by Product/Services Produced (Cont.)

  14. 7. Findings: Distribution of Informal Sector by Place of Operation (Cont.)

  15. 7. Findings: Distribution of Informal Sector By Gender (Cont.)

  16. 7. Findings: Distribution of Informal Sector by Stratum (Cont.)

  17. 8. Challenges • Not registered • Often invisible – home-based activities • Often small scale but large in numbers • Mobile • Often no proper account is kept • Open and close quickly, frequently

  18. 9. Way Forward • Informal Sector Survey will be undertaken regularly as part of a module under LFS. • With the availability of regular data, NA will attempt to estimate the contribution of informal sector to GDP on annual basis. • Apply the estimation of informal sector by using Labor Input Method (LIM).

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