Author(s): Siti Marsila Mhd Ruslan
This paper studies about the efficiency and productivity of seven sub-sectors involved in agro-based industry in Malaysia from year 1993-2003 (after 10 years of implementation of First National Agricultural Policy). The study is conducted using Malmquist productivity index to observe the productivity efficiency trend throughout years and sectors. Based on the result, the Malmquist index shows that year 2002 recorded the highest total productivity index at 2.351, contributed by the technical change value at 2.121; while the cocoa industry recorded the highest total productivity index among all sectors with the index of 1.007. Most of the sub-sector of agro-based industry does not show the productivity growth due to the lack of technical factor and weak marketing strategy.