1. COMPILATION OF GDP BY INCOME APPROACH & ACCOUNTS FOR HOUSEHOLD SECTOR
Department of Statistics, Malaysia
March 2012

2. CONTENTS Introduction GDP Income Approach By Institutional Sector
Data sources
Methodology
Institutional sectors in Malaysia
Sequence of the accounts

3. INTRODUCTION GDP by Income approach
By Institutional sector and kind of economic activity
By Institutional Sector:
Can be seen through the compilation of Distribution and use of Income Accounts and Capital Accounts.
Based on Sequence of Account in current prices at annual basis
By Kind of economic activity
To complement the production and expenditure approach
To see the distribution of value added by various economic activity
At annual basis in current prices

4. Annual surveys by DOSM eg. EC Insurance reports by Central Bank
GDP INCOME APPROACH BY
INSTITUTIONAL SECTOR
Statistics compiled by Central Bank on CB, FC, MB, leasing & factoring
Annual surveys by DOSM eg. EC
BOP statistics from DOSM
DATA SOURCES
Annual reports from govt. agencies
Annual reports from individual companies
Insurance reports by Central Bank

5. METHODOLOGY
The compilation is based on the concepts and methodology outlined in the United Nations publication entitled `System of National Accounts 1993’ (SNA 1993).
compilation presents the sequence of accounts from production account to capital account.
These accounts show how :
production gives rise to income
income is distributed & redistributed
income is used for consumption or
saved
saving is translated into fixed capital
formation and net borrowing or lending

6. INSTITUTIONAL SECTORS IN MALAYSIA

7. SEQUENCE OF THE ACCOUNTS
Production account
Generation of income account
Allocation of primary income account
Secondary distribution of income account
Redistribution income in kind account
Use of disposable income account
Use of adjusted disposable income account
Capital account

8. COMPILATION FRAMEWORK
ROW
Total Economy
NFC FC
GOV
Household & NPISH
Pub
Pri
Fed
State
Local
Production Account
Primary Distribution of Income Account
Secondary Distribution of Income Account
Use of Income Account
Capital Account

9. CAPITAL ACCOUNT
Capital account shows saving as a source of funding for capital formation
4 categories of changes in assets are distinguished in the capital account:
- gross fixed capital formation
- changes in inventories
- acquisition less disposal of valuables
- acquisition less disposal of non-produced
non- financial assets

10. PRODUCTION ACCOUNT first account in the sequence of accounts
records the activity of producing goods and services
calculates gross value added by subtracting intermediate consumption measured at purchaser’s prices from output measured at basic prices

11. PRIMARY DISTRIBUTION OF INCOME ACCOUNT
Consists of two consecutive accounts:
- generation of income account
- allocation of primary income account
Compensation of employees includes the remuneration, in cash or in kind, payable by an enterprise to an employee in return for work done during the accounting period

12. SECONDARY DISTRIBUTION OF INCOME ACCOUNT
Consists of two consecutive accounts:
- secondary distribution of income account
- redistribution of income in kind account
3 main kinds of current transfers are:
- current taxes on income, wealth, etc
- social contributions and benefits
- other current transfers

13. USE OF INCOME ACCOUNT There two version of the use of income accounts:
- use of disposable income account
- use of adjusted disposable income account
Transactions on final consumption of goods and services for which a sector is the ultimate bearer of the expense even though it is not the sector to which the goods and services are delivered. 3 types of final consumption expenditure:
- household final consumption expenditure
- final consumption expenditure of NPISHs
- government final consumption expenditure

14. Thank you…