MGT269

WRITTEN REPORT

MANUFACTURING:

MONTHLY MANUFACTURING STATISTICS MALAYSIA, DECEMBER 2019

PREPARED BY:

NAME STUDENT ID
MUHAMMAD AFIE BIN ABDULLAH 2021867512
AUDRENE LAYLA RIZQ ARISHA BINTI 2021605302
KHAIRUL FAZRIL
NUR FARAH BATRISYIA BINTI KHAIRUL 2021893546
ANUAR
MUHAMMAD IDHAM BIN AHMAD 2021838038
ZULFAQAR

PREPARED FOR: DR. THAHIRA BIBI TK MUTHU KOYA THANGAL

GROUP CLASS: J4BA1172F

DATE SUBMISSION: 8TH MAY 2022

2.1 BACKGROUND PROBLEM

Malaysia has remains a sustainable growth under the 11th Malaysia Plan for
manufacturing’s sector as Malaysia is currently has been striving for the high-income
status by 2020 since manufacturing plays a big role for economic transformation in
Malaysia. However, in order to strive towards the desire plan, there are a few problems
and issue that the manufacturing industry in Malaysia has been facing.

The first main problem that has been an issue for awhile now is the dependency on
low-skilled foreign worker. This shows the lack of policy alignment in the labour market
as this probably happens because they are hired to benefit the employer in terms of
price restrictions since these low-skilled foreign worker will only be pain the minimum
wage. In 2016, 42% of foreign worker were employed in the manufacturing sector of
which 74% were employed in seven subsectors such as wood and furniture, plastic,
food processing, rubber-based, textile and fabricated metal. The issue about hiring
low-skilled foreign worker is that it eventually discourages the manufacturer from
innovating and investing in a higher technology machine for a higher productivity within
the industry as these workers are not qualified or skilled enough to be handling those
types of technology. These higher value product will requires skilled, creative and
innovative workers with technological knowledge to constantly improve the product
and process. This problem eventually reflects on the manufacturing industry in
Malaysia with the problem of lack of innovation.

This is because, the innovation of higher technology products will involved high risk, a
long development period and high investment to obtain and operate the machinery
and testing equipment. Employer should realise that actually hiring a high quality
worker will leads them to innovationa and creativity that could improve the
manufacturing and Malaysia’s economic status.
 2.2 PURPOSE

A quantifiable strategic objective for manufacturing is creating production goals for

each manufacturing segment. These goals are created in connection with sales
projections that establish the demand numbers that the company uses as
manufacturing method. Each employee should be given objectives for maintaining
production volume, and those numbers should be evaluated regularly to describe
training or other changes need to be implemented to achieve the objectives.

The manufacturing objectives of the study are as follows:

To improve quality over quantity. Improving quality is highlighted as it is important

for a company to produce quality products that meet or exceed the standards of
customers’ expectations and decrease waste. Quality product can improve
customer contentment as well as higher the sales and improve customer retention.
In the sectors such as aerospace, automotive and pharmaceuticals, companies will
need to fulfill customers’ and industry standards as a condition of leading a
business. Inferior products may damage a company’s reputation and lead to loss
of revenue and increasing liability if customers move to competitors. The probability
of the business to flop will increase due to poor quality that increases costs through
time spent reworking defective products and the cost of replacing wasted materials.

To support other functional areas in organization, such as marketing, finance and

personnel. The marketing department will find it easier to sell good-quality
products, and the finance department will get more loans and share capital due to
enlargement and new technology modernization. The personnel department will
be able to manage the human resources effectively due to the better presentation
of the production department.

To make sure manufacturing ecosystem viability. Ecosystem relationships typically

suffer the most during massive market disruptions. The increasing adoption of
ecosystem-based global supply chains, this is a challenge for manufacturers. They
must understand the impact of Covid-19 and contract provisions for each critical
ecosystem player, including material suppliers, contractor companies and logistic
providers.

To understand the impact of demand and supply disruption. Demand priorities in

product portfolios have changed radically. There are three key scenarios affecting
manufacturing assets which is manufacturers are shifting to address opportunities
for hypergrowth, manufacturers are transitioning and repurposing legacy lines to
make new products to support the community and where demand drastically fallen
off or supply chains have been disrupted, manufacturers are slowing or shutting
down production volume.
 2.3 SCOPE

Malaysia’s manufacturing sector continue to play an important role in the Country’s

economic transformation. Total of employees has engaged in manufacturing sector in
December 2019 was 1,090,614 person compare to last year was 1,075,635 persons.
Employee’s salary in manufacturing is average RM 3,970 in December 2019. Some of
the manufacturing that available in Malaysia are :

1) Transport Technology
2) Petroleum , Chemical , Rubber and Plastic product
3) Electrical & Electronics products
4) Food Technology
5) Furniture

Manufacturing sector played an important role in change of Malaysia’s ekonomi . For

that a highly skill engineers are needed in the manufacturing business. The engineers
are responsible for safety and quality of the product and the maintenance of machinery
is necessary for smooth production.The Malaysian economy has been deteriorated in
years. This can be see In the first 9 month of year 2009,it was show that the value of
manufacturing industry has been decrease by 13.7 percent because of external
environment problem. The effect from the problem cause a slowdown in the industry
export production . The sector is contributed 26.8 percent to GDP during the period
and the export manufacturer has decrease 14.1 percent from RM432.6 billion at 2008
to RM371.5 billion at 2009. A man use power in manufacturing business 3.3 million
people in 2009. For the service sector in 2009 has contributed the biggest GDP to
Malaysia. In the first 9 months of 2009 it contributed 67.3 percent to GDP. Service
sector has contribute a better GDP compare to Manufacturing sector on the same
period in 2009.
2.4 METHOD OF INVESTIGATIONS

Our method to complete this report by using secondary data. For secondary data, we
use internet, journal, newspaper article and website to collect useful data. Countless
studies on financial topics but a surprisingly small proportion of researchers take the
issues seriously. However , the research still gives us helpful data. By using this
method, it is practically free of cost . This method are easy to use especially when it’s
come to what happens to the world now because of the COVID-19 . We do not need
to go anywhere to get the information . From internet , we also got data from some
government and non-government agencies that publish the fact of manufacturing
statistics in Malaysia , December 2019. The services provided in these public
libraries. More often, libraries have huge collection of government publications with
market statistics, large collection of business directories and newsletter. Other than
that, we also get local newspaper, journals, magazines and are great source to obtain
data for secondary research. These commercial information sources have first-hand
information on economic development , political agenda, market research,
demographic and similar subject .

Customer-driven marketplaces in today's society have resulted in the fast invention

and constant evolution of manufacturing technology. The capacity to precisely make
complicated components, as well as reuse and remanufacture existing parts, is
becoming more common, necessitating the development of more efficient and quick
procedures. One such approach is the hybrid process, which combines additive,
subtractive, and inspection processes to produce complicated component geometries
from any given raw material in terms of shape and size. The deconstruction of a part
into a number of subparts, which are additively built and machined in succession, is a
key component of the hybrid process. However, residual strains caused by
temperature differences between the solidified material and the substance decreases
the end part's dimensional correctness This research looks on part distortions that
occur during the additive manufacturing process in the context of hybrid
manufacturing. This investigation's methodology was initially offered. A mathematical
model was created in order to discover the relevant parameters that lead to part
distortions. Using the Taguchi design of experiments technique, these factors were
then integrated into the experimental design. The experimental investigation of
thermally induced stress distortion behaviour revealed that part length, height, and
layer thickness had substantial influence on part deformities.

To make nickel-titanium rotary files for root canal preparation, a novel manufacturing
technique including twisting of a ground blank coupled with heat treatment was
recently devised. The purpose of this research was to compare the torsional resistance
of prototype instruments made using the novel manufacturing technology to typical
nickel-titanium instruments made using the old grinding procedure. Twenty prototype
instruments of the same design and dimensions were allocated into two groups of ten
each, based on the manufacturing process used . The results showed that instruments
made using the new manufacturing method had much greater average maximum
torque levels than those made using the previous grinding procedure. The results
showed that instruments made using the new manufacturing method had considerably
greater average maximum torque levels than those made using the previous grinding
procedure . Because the instruments' designs and dimensions were the same, the
difference in manufacturing method might be the sole reason for the increase in
torsional resistance.
 2.5 LIMITATION

Developed on our report about monthly manufacturing statistics on Malaysia .

Doubtless, we never had a chance to do face to face group discussion. The reason is
we had to do ODL since our semester because of COVID-19 pandemic .

Other than that, when we are doing online meet some of us have a problem with
internet connection while trying to complete the report such as slow internet
connection. The weather nowadays also the reason for slow internet for us to complete
our report. Even there is a problem when doing the report , we tried our as well as
possible to complete the report.

3. FINDING DATA AND ANALYSIS

3.1 CHARTS AND DESCRIPTION

Graph analysis includes the investigation of routes, connectedness, community, and

centrality of/between items within a graph [46]. Path analysis is used to prove the
reachability of two objects in a network, discover a path with no repeated edges, find
cycles, or determine the shortest path between nodes. Connectivity analysis is used
to determine how strongly one entity is related to other things, how resilient a graph is,
or the similarity between graphs. The term "community analysis" refers to the process
of identifying items that often interact communities or clusters and their progression.
Centrality analysis is used to determine the relevance of nodes , for example, if a node
is connected to many other nodes, which might indicate that it is important.
relationships, energy flows, processes, or supply chains, such assessments can give
useful information about the system under consideration.

Figure 2.0In a statement, the Statistics Department said, the Year-on-Year (YoY)
growth was driven by the expansion in Transport Equipment & Other Manufactures
Products (7.7%), Petroleum, Chemical ,Rubber and Plastic Products (5.9%), Electrical
& Electronics Products (5.9%), and also Food, Beverage (9.5%) drove the Year-on-
Year growth (2.7%) that as shown as in Figure 2.0. Looking ahead, economic growth
 is expected to accelerate in the coming quarters although overall growth in 2019
should ease slightly relative to 2018. This is partly due to softer private consumption
and public consumption as the government looks to cut the fiscal deficit, which will
likely drag demand. Moreover, global trade tensions also pose a risk to the outlook for
the external sector . Providing a medium-term outlook on growth, Euben
Paracuelles, a research analyst at Nomura noted . We maintain our full-year 2019
GDP growth forecast at 4.0%, which would represent a slowdown from 4.7% in 2018.
We expect further export weakness in coming quarters due to cooling foreign demand,
the deepening tech downcycle and rising trade tensions given Malaysia’s exposure
to trade, a continued weakening in the export sector would likely have large negative
spill-over effect son domestic demand via its impact on capex and the labour market,
as is already evident in the sharp slowdown in the total investment spending
since last year. Holding a more optimistic view on Malaysia’s growth outlook,
Prakash Sakpal , economist at ING , commented “The above-expected first-quarter
GDP on its own lifts our full-year growth forecast from 4.6% to4.7%, putting it close to
the top end of the BNM’s 4.3-4.8% forecast for this year. We don’t think the
government’s expectations of 4.9% growth this year will be unachievable given the
accommodative macro policies. Focus Economics Consensus Forecast panelists
expect GDP to grow 4.5% in 2019, which is unchanged from last month’s projection.
For 2020, the panel sees economic growth of 4.5%.

4. CONCLUSION

Manufacturing means processing of raw materials or fragment into complete products

though the use of apparatus, human labor, machineries as well as chemical
processing. By translating the raw materials into something useable for worth of adds
This compromised value increases the price of final products, producing manufacturing
a much more profitable part of the business chain. Efficiency in manufacturing can lead
to higher productivity and cost savings. Hand manufacturing includes the use of basic
materials through more traditional stages. This often associated with decorative art,
textile production, carpentry, leatherwork and also metalwork. Handcrafted goods are
labor-intensive and need a lot of time which may lead to a high price, hang on the
supplier and the type of goods. For example, handmade fashion items can be sold at
expensive price compared to something easy to produce in a larger amount which is
also known as mass-produced. It is also integral to the sector of economy which most
of the products were handwrought with using human labor and some fundamental
mechanism before the Industrial Revolution. Also, led to mass production, assembly
line manufacturing, and the use of mechanization to manufacture more quantity of
goods at a cheap charge. Economist and government statisticians use multiple ratios
when evaluating the role manufacturing works in the economy. The example of
manufacturing is clothing. It involves an amount of method and processes to go from
raw materials to final products. The industry uses natural materials such as silks and
cotton also synthetic materials such as polyester and microfiber. To pen off,
manufacturing brings a lot of benefits to the sector of economy as well as the
technology revolution.
5. RECOMMENDATION

Based on the research and report we have made, we have a few

recommendations that probably could help in improving the manufacturing
industry in Malaysia. As a starter, manufacturing company should reduce the
ease of getting foreign worker. This is one of the key in order to bring out and
promote more high automation in production. This could result in the ability to
control the amount of foreign worker that has been hired gradually in
manufacturing sector. Automatically, we could also tighten the inflow of foreign
worker by making them to apply for manufacturing license through the legal
firms and give out a harsher penalties to those manufacturer who illegally
employ foreign worker. After doing our research, we could see the by applying
this action, there is a probability to increase the minimum wage which at the
same time will reduce the demand of getting foreign low-skilled worker and
instead, employ a better high-skilled worker to encourage better automation.

Next, we highly recommend to enhance the logistics and infrastructure support.

This is important because it could reduce the overall cost product by upgrading
the movement of goods which can increase the productivity and competitive
advantages. Online shopping is the most popular and efficient way for people
to get any products with just one click away. This shows that virtual selling
platforms which adopts e-commerce features have to be promoted in
manufacturing industry to match logistics supply and demand to encourage
SMEs to leverage online retails so that they can target a wider market in an
easier way.
6. REFERENCES

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April 27, 2022, from https://bizfluent.com/info-7825201-manufacturing-
objectives.html
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Business logistics. In: International journal of interdisciplinarity in theory and
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3. Hoffman, J. (2021, May 25). 5 key objectives of Lean Manufacturing.
WisdomPlexus. Retrieved April 27, 2022, from
https://wisdomplexus.com/blogs/lean-manufacturing-objectives/
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https://asmedigitalcollection.asme.org/manufacturingscience/article-
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https://www.emerald.com/insight/content/doi/10.1108/JMTM-03-2014-
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8. https://www.mida.gov.my/wp-
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10. https://www.epu.gov.my/sites/default/files/2021-
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7. APPENDICES

1. Questionnaire

2. Responses / Results