UNITED NATIONS WORKSHOP ON INTERNATIONAL ECONOMIC AND SOCIAL CLASSIFICATION 24 – 27 NOVEMBER 2008 BANGKOK, THAILAND

1. UNITED NATIONS WORKSHOP ON INTERNATIONAL ECONOMIC AND SOCIAL CLASSIFICATION 24 – 27 NOVEMBER 2008 BANGKOK, THAILAND DEVELOPMENT AND IMPLEMENTATION ISIC REV. 4 AND CPC 2.0 IN MALAYSIA: CHALLENGE AND ISSUES

2. OUTLINE OF PRESENTATION • Introduction • Harmonized coding system • Rationale for the development of the codes • Implication from development and expansion of the codes and classification • Implementation of MSIC 2008 dan MCPA 2008 • Challenges and Issues Concerning ISIC Rev. 4 and CPC 2.0 • Conclusion

3. INTRODUCTION • Economic and Social Classification • Malaysia Standard Industrial Classification (MSIC) • Based on International Standard Industrial Classification (ISIC) • MSIC 2008 ver 1.0 based on ISIC rev. 4 • Malaysia Classification of Products by Activity (MCPA) • Based on Central Product Classification (CPC) • MCPA 2005 based on CPC 1.0 • MCPA 2008 in process of updating based on CPC 2.0

4. SECTION DIVISION GROUP CLASS ITEM 01 011 0111 01 01111 001 A ISIC MSIC HARMONIZED CODING SYSTEM updating the codes and classifications used in the country in line with the international guidelines and recommendations A AGRICULTURE, FORESTRY AND FISHING 01 Crops and animal production, hunting and related service activities 011 Growing of non-perennial crops 0111 Growing of cereals (except paddy), leguminous crops and oil seeds 01111 Growing of maize

5. HARMONIZED CODING SYSTEM 0122 – GROWING OF OTHER TROPICAL AND SUB-TROPICAL FRUITS Which has been divided into 9 sub-items: 01221 – Growing of banana 01222 – Growing of mango 01223 – Growing of durian 01224 – Growing of rambutan 01225 – Growing of star fruit 01226 – Growing of papaya 01227 – Growing of pineapple 01228 – Growing of pitaya (dragon fruit) 01229 – Growing of other tropical and subtropical fruits.

6. HARMONIZED CODING SYSTEM COMMODITY GROUP COMMODITY CODE INDUSTRY 01 01111 01 001 BASED ON CPC DERIVED CODE MSIC MCPA 01111 GROWING OF MAIZE 01 Maize (corn), seed 001 Maize (corn), seed 002 Sweet corn 003 Other maize (corn)

7. RATIONALE FOR THE DEVELOPMENT OF THE CODES • to ensure the codes and the classifications used are harmonized internationally • synchronizing for all agencies to use the same codes and classifications • expansion of new industries and products in Malaysia market • data comparison can be made, nationally or internationally

8. IMPLICATION FROM DEVELOPMENT AND EXPANSION OF THE CODES AND CLASSIFICATION MSIC 2000 vs MSIC 2008 VER. 1.0 68.2% 40.1% 51.6% 46.7% 23.5%

9. IMPLEMENTATION OF MSIC 2008 AND MCPA 2008 • MSIC 2008 Rev 1.0 are finalised on August 2008, the implementation process of MSIC 2008 involves: • Providing training and exposure toward new codes for the users • Process of conversion of all system, time series data and SIDAP frame. • MSIC will be used in the Population and Housing Census of Malaysia 2010. • January 2010, all surveys carried out by DOSM will be fully implement due to the interdependency between MSIC and MCPA, DOSM targeted to finalized the next version MCPA by June 2009

10. CHALLENGES AND ISSUES CONCERNING ISIC REV. 4 AND CPC 2.0 • Revision of MSIC and MCPA should be concurrent because of the interdependency, have to prioritize only one because of the scarcity of workload and time. • The use and conversion to new codes will affect time series data. • publishing activities under manufacturing moved to services in the ISIC Rev. 4 (Information and communication) • The production of ice, including ice for food and non-food (e.g. cooling) purposes has been classified under class 3530 - utility steam and air conditioning supply and not classified as manufacturing as in the ISIC Rev.3 • Expansion and combination of ISIC codes • The mapping process for these industries will be done manually and very time consuming

11. CHALLENGES AND ISSUES CONCERNING ISIC REV. 4 AND CPC 2.0 • In the process of developing the new MCPA, we found that: • For the CPC 2.0 code 63310 – Meal serving services with full restaurant services, we suggest that for ”food preparation and related beverage service furnished in hotels or other lodging places” should come under the industry code 5510 – Short term accommodation. This is because most of the restaurants, coffee houses in hotels are usually owned by the hotel. When these restaurants came under a different industry code (5610), it will raise to inaccuracy of the data. • For the CPC Group 833 – Engineering services, we suggest that for specific engineering field, it should be classified separately and not under engineering services code 7110 – Architectural and engineering activities and related technical consultancy.

12. CONCLUSION • Will always update new codes along with international changes from time to time • Through the Inter-Agency Technical Committee (IATC) which comprise of representatives from a related government agencies, the coordination and monitoring of the implementation and use of standardized codes, classifications and definitions developed in the Department and Other Government Agencies (OGAs) can be done.

13. Thank you Terima kasih