|Unit||Mil. 2015 MYR, NSA|
|Adjustments||Not Seasonally Adjusted|
For Malaysia, GDP measures the value generated by all resident units engaged in productive activity before deduction of provisions for the consumption of fixed capital. Compiled by both the expenditure method and the production method.
The source writes:
Changes in conceptual treatment and methodology (2010 base year GDP)
The changes in conceptual treatment and methodology is based on recommendation by the SNA and BPM6 particularly in:
1. Implementation on treatment of Goods for Processing from Abroad (GFP) and Manufacturing Services (MS)
The 2008 SNA and BPM6 recommends that exports and imports should be recorded on a change of ownership principle. That is, flows of goods between the country owning the goods and the country providing the processing services should not be recorded as imports and exports of goods. Instead the fee paid to the processing unit should be recorded as the import of processing services by the country owning the goods and an export of processing services by the country providing it. In terms of recording an output of an establishment that is involved in GFP, if the establishment has no economic ownership of the goods being processed, thus the value of the output should be fees it received in processing the product and not the value of the whole product. As a result of GFP implementation, the value of net exports of goods and services was revised downward. Simultaneously, the Manufacturing sector was also affected particularly in electrical and electronic industry (2008 SNA).
2. Refinement in methodology of COFC for Government Services and Government Consumption
Consumption of fixed capital or depreciation is the decline in the current value of the stock of fixed assets owned and used by a producer as a result of physical deterioration, normal obsolescence or normal accidental damage during the course of the accounting period. As recommended by SNA, the Perpetual Inventory Method (PIM) was applied in measuring the COFC for rebasing of government services and government consumption.