Actual,desired and full levels of capital utilisation in Malaysian manufacturing

This paper shows that capital utilisation in West Malaysian manufacturing, though higher than that in other less developed countries, still leaves capital plant idle for a considerable proportion of the total available time. These findings, based on a modified McGraw‐Hill measure and on the Winston time‐measure of capital utilisation, therefore calls into question the wisdom of an industrial investment incentive programme which aims primarily at maximising the volume of capital expenditure, and which pays no attention at all to the level of utilisation of the existing stock of capital.