classification of sectors follows Malaysia’s national accounts; all output figures have been adjusted to reflect 2015 prices.

As compared to output, the consistent classification of sectoral employment data requires slightly more effort. The relevant classification has undergone several revisions during the observation period. Employment data from 1987 to 2000 published by DOSM are based on the (updated) Malaysia Standard Industrial Classification (MSIC) 1972, data from 2001 to 2009 are based on MSIC 2000, and data from 2010 to 2018 are based on MSIC 2008. In general, MSIC very closely follows the United Nation’s International Standard Industrial Classification of All Economic Activities (ISIC) and its various revisions. For the purposes of this study, all relevant data are standardized to match the national accounts sectoral classification, as shown in Table 2. This standardization is straightforward and uncontroversial on the one-digit sectoral level but more complicated for a more granular disaggregation of the employment data. Therefore, this study focuses on the one-digit level and distinguishes between eight sectors: agriculture; mining; manufacturing; construction; trade; transport; business; and other (which includes utilities, government services and other services).

**Table 1: Description of sectors based on Malaysia’s national accounts**

|**Sector**|**Full description of sector in national accounts**|
|---|---|
|Agriculture|Agriculture, livestock, forestry and fishing|
|Mining|Mining and quarrying|
|Manufacturing|Manufacturing|
|Construction|Construction|
|Trade|Wholesale and retail trade, accommodation, food and beverage|
|Transport|Transport, storage, information and communication|
|Business|Finance, insurance, real estate and business services|
|Other|Utilities; government services; other services|

**Table 2: Categorization of sectors based on MSIC (Updated) 1972, MSIC 2000 and MSIC 2008**

|**Sector**|**MSIC (Updated) 1972**<br>**(1987-2000)**|**MSIC 2000**<br>**(2001-2009)**|**MSIC 2008**<br>**(2010-2018)**|
|---|---|---|---|
|Agriculture|Agriculture, forestry,<br>livestock and fishing|Agriculture, hunting and<br>forestry;fishing|Agriculture, forestry and fishing|
|Mining|Mining and quarrying|Mining and quarrying|Mining and quarrying|
|Manufacturing|Manufacturing|Manufacturing|Manufacturing|
|Construction|Construction|Construction|Construction|
|Trade|Wholesale and retail trade,<br>restaurants and hotels|Wholesale and retail trade;<br>repair of motor vehicles,<br>motorcycles and personal and<br>household goods; hotels and<br>restaurants|Wholesale and retail trade; repair of<br>motor vehicles and motorcycles;<br>accommodation and food service<br>activities|
|Transport|Transport, storage and<br>communications|Transport, storage and<br>communications|Transportation and storage;<br>Information and communication|
|Business|Finance, insurance, real<br>estate and business services|Financial intermediation; Real<br>estate, renting and business<br>activities|Financial and insurance/takaful<br>activities; Real estate activities;<br>Professional, scientific and<br>technical activities|
|Other|Electricity, gas and water;<br>community, social and<br>personal services|Various other including<br>electricity, gas and water supply;<br>compulsory social security;<br>other community, social and<br>personal service activities|Various other including Electricity,<br>gas, steam and air conditioning<br>supply; compulsory social security;<br>other service activities|

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