Are foreign multinationals more efficient? A stochastic production frontier analysis of Malaysia's automobile industry

This paper compares the sources of total factor productivity (TFP) growth of foreign (establishments with 51% and above foreign equity ownership) and local establishments in Malaysia’s automotive sector by applying a stochastic production frontier to a panel of 510 plants for the period 2000-2004. The results showed that TFP growth for local automobile plants was minimal at 0.63% and minimally negative at -0.27% for foreign plants. On average,over the study period, technical efficiency changes contributed positively toward TFP growth but scale efficiency changes were negative for both local and foreign establishments. Technical progress was minimally positive for local establishments and minimally negative for foreign establishments.The small size of plants and the lower share of white-collar workers were significant in explaining plant inefficiency in Malaysia’s automobile sector. A higher capital-labour ratio was positively related to plant inefficiency and this may be due to excess capacity in the automobile sector as a result of a small domestic market. Finally, foreign multinationals are significantly more efficient than locally owned plants

Data Envelopment Analysis (Dea) approach In efficiency transport manufacturing industry in Malaysia

The objective of this study was to measure of technical efficiency, transport manufacturing industry in Malaysia score using the data envelopment analysis (DEA) from 2005 to 2010. The efficiency score analysis used only two inputs, i.e., capital and labor and one output i.e., total of sales. The results shown that the average efficiency score of the Banker, Charnes, Cooper - Variable Returns to Scale (BCC-VRS) model is higher than the Charnes, Cooper, Rhodes - Constant Return to Scale (CCR-CRS) model. Based on the BCC-VRS model, the average efficiency score was at a moderate level and only four sub-industry that recorded an average efficiency score more than 0.50 percent during the period study. The implication of this result suggests that the transport manufacturing industry needs to increase investment, especially in human capital such as employee training, increase communication expenses such as ICT and carry out joint ventures as well as research and development activities to enhance industry efficiency

Technical efficiency in transport manufacturing firms: evidence from Malaysia

This study aims to identify the level of technical efficiency and the determinants of technical inefficiency for transport manufacturing firms in Malaysia for 2010 using cross-sectional data of 130 firms acquired from the Department of Statistics (DOS). Based on the stochastic frontier analysis (SFA) approach, the results of the study reveal that the average level of technical efficiency is moderate. The estimated result identifies the important determinants of technical inefficiency which are due to employee wage rates as well as the cost of information and communication technology. The fundamental implications of this study are that transport manufacturing firms need to boost motivation among employees and strengthen the network of the production market via wage increment and communication cost

Penangkapan ikan oleh nelayan Negeri Sembilan: Satu kajian empirikal

The objective of this research is to identify the important factors in influencing fishing activities in Negeri Sembilan, specifically in the district of Port Dickson. The study analysed the impact of socio-economics and the environment toward the inefficiency level of the fishing activities as well as to give suggestions to improve efficiency. The Stochastic Frontier and technical inefficiency models were developed to analyse all the data. The results from 156 fishermen show that costs of fishing per trip, number of labour, and type of boat are significant toward the total of landings. Moreover, the study found that the mean of technical efficiency of fishing activities is at 76.5%. Overall, it shows that the efficiency level of fishing activities is moderate and its competitiveness should be improved continuously at the same level with development of other economic activities in this area

The Optimum Field Configuration for Active MASW Survey on Peat Soil

The application of the MASW method on engineering investigation required optimization of the field configuration to ensure high quality dispersion image for reasonable shear wave velocity profile estimation. The limited investigation with respect to peat soil condition has motivated the study to determine the optimum field configuration for peat soil. The challenging characteristics of peat soil including high void ratio, compressibility, water content and low shear strength further complicates the determination of optimum field configurations. The study focused on the determination of optimum field configurations for active MASW method which includes the receiver spacing, source offset, sensor frequency and sampling interval. The results obtained shows that, the optimum receiver spacing to obtain high signal to noise ratio dispersion image was 1 meter. Smaller receiver spacing causes domination of higher modes and wide bandwidth, while longer receiver spacing causes significant drop in signal to noise ratio governed by rapid energy dissipation with distance. For the source offset, the distance of half the total spread length (X1 = L/2) provides the best resolution and minimised near-field and far-field effect. While, 4.5 Hz sensor frequency and sampling interval between 100 to 250 ms provides sufficient low frequencies for deeper depth investigation and denser data. Overall, the influence of receiver spacing, source offset and sensor frequency on the dispersion image resolution was significant

Climate change and vulnerability of paddy cultivation in north-west Selangor, Malaysia: a survey of farmers’ assessment / Md. Mahmudul Alam... [et al.]

Climate and agriculture highly interrelated. Agriculture is highly dependent on the climatic factors. The climatic factors as well as other factors that are determined by climate cause vulnerability of agriculture and agricultural production.. Using a survey method this study aims to determine the impacts of climatic change on agricultural vulnerability in the Integrated Agricultural Development Area (IADA), West Selangor, Malaysia. Results suggest that over the last 5 years vulnerability of the factors like, injurious insects, high temperature, soil fertility loss, and cost of input materials increased greatly due to climatic changes; and the vulnerability of the factors like shortage of rainfall, excessive rainfall, and labor scarcity increased moderately during this period. It is projected that due to climate change agricultural production sustainability will become vulnerable in Malaysia by 2020

Anticipating the declining stage of special tourism event

In this relentlessly competitive world tourism industry, tourism destination must put in extra effort to maintain its attractiveness. Hence, presence as a special tourism interest product, special event has become an obligatory attraction at most tourism destinations in order to continuously highlight the uniqueness, enjoyment, excitement, and wonderful experience to the attendees. Nonetheless, the issue of sustaining the special event particularly the attainment of return on investment (ROI) is important because hosting special events inquires large investment. Drawing from Butler (1980) destination life cycle, which staged special event into five phases, including emerging trend, growth, and maturity / consolidated, decline and revitalization, the authors demonstrate the strategy on how to extend special event life cycle. Prior to that, the authors discuss the connection point of special event as special interest tourism product. Authors also provide the definition of event from the academic perspective, the importance of special event to tourist destination, and the roles of special event in boosting tourism destination. Looking forward, the authors anticipate numerous ways in which the destination provider could apply green principles into special events

Penangkapan Ikan oleh Nelayan Negeri Sembilan: Satu Kajian Empirikal

Tujuan kajian ini ialah untuk mengkaji faktor-faktor yang mempengaruhi aktiviti penangkapan ikan di Negeri Sembilan iaitu keseluruhan daerah Port Dickson. Kajian juga menilai impak sosio-ekonomi dan alam sekitar terhadap tahap ketakcekapan aktiviti penangkapan ikan dan seterusnya memberi cadangan bagi meningkatkan kecekapannya. Analisis dilakukan dengan membentuk model Stokastik Frontier tangkapan ikan nelayan dan model ketakcekapan teknikal. Keputusan kajian terhadap 156 nelayan menunjukkan kos penangkapan se trip, jumlah tenaga kerja dan jenis bot adalah signifikan di dalam mempengaruhi jumlah tangkapan ikan nelayan. Seterusnya kajian mendapati min indeks kecekapan teknikal nelayan adalah pada paras 76.5%. Ini menunjukkan secara keseluruhan bahawa tahap kecekapan dan daya saing kegiatan penangkapan ikan di negeri ini adalah sederhana dan perlu ditingkatkan selari dengan tahap pembangunan lain-lain aktiviti ekonomi di kawasan ini.

Influence of Iron Oxide Powders on Braking Performance of Brake Friction Materials / R.J. Talib...[et al.]

Friction material is used to slow down the moving vehicle and finally stopped at the required position by the pressing it against the rotating brake disc. Four friction material formulations marked as T, T1, T2 and T3 have been prepared through powder metallurgy process. The effect of different volume percentage (vol. %) iron oxide on the braking performance will be the main focus of this study. Each sample was subjected to porosity, hardness, friction and wear in accordance with international standard test procedures. The three samples T1, T2 and T3 which were utilising of activated carbon from kernel shell (PKS carbon) as their carbon content had higher coefficient of friction (COF) than sample which was using commercial carbon, sample T. Thus, PKS carbon produced locally could be used to replace the imported commercial carbon. Sample T2 which was composed of 15% voulme percentage of iron oxide powder produced the highest COF and having slightly higher thickness loss as compared with sample utilising commercial carbon. Thus, the base formulation sample T2 is the best formulation which produce the optimum triblogical and mechanical result. The transisition of wear mechanism from abrasion to severe adhesion under high surface temperature may cause increase in wear rate of the friction material

Are Foreign Multinationals More Efficient? A Stochastic Production Frontier Analysis of Malaysia’s Automobile Industry

This paper compares the sources of total factor productivity (TFP) growth of foreign (establishments with 51% and above foreign equity ownership) and local establishments in Malaysia’s automotive sector by applying a stochastic production frontier to a panel of 510 plants for the period 2000-2004. The results showed that TFP growth for local automobile plants was minimal at 0.63% and minimally negative at -0.27% for foreign plants. On average, over the study period, technical efficiency changes contributed positively toward TFP growth but scale efficiency changes were negative for both local and foreign establishments. Technical progress was minimally positive for local establishments and minimally negative for foreign establishments. The small size of plants and the lower share of white-collar workers were significant in explaining plant inefficiency in Malaysia’s automobile sector. A higher capital-labour ratio was positively related to plant inefficiency and this may be due to excess capacity in the automobile sector as a result of a small domestic market. Finally, foreign multinationals are significantly more efficient than locally owned plants.