Connecting economic systems and structures into planning and development


The effective formulation and evaluation of developmental policies call for appropriate macroeconomic analytical tools. This is because economy operates as a system of interactions, where industries, households, government and capital across the world are inter-dependent. Thus, policy analyses require models that capture not only partial equilibrium but general equilibrium that takes into account interdependencies among the sectors. Without such models, it will be more challenging to carry out short- and medium-term planning exercises in a systematic and cohesive manner, thus affecting the quality of policies to attain socio-economic objectives of the country.

Input-output analysis is the main tool of applied general equilibrium analysis. It accounts inter-industry relations by showing that the output of one industry becomes an input for another industries, which results in an interlinked economic system. These interdependencies among industries are tabulated in an input-output table. The input-output table provides the main dataset for modeling input-output and its extension including the social accounting matrix (SAM) and computable general equilibrium (CGE).

Principally formulated by Wassily Leontief in the 1930s, input-output analysis is nowadays one of the most active areas of in the field in economics. It has generated much interest among policy makers and policy analysts as a main methodology capable of providing coherent answers to complicated questions in a systematic way. The popularity and prestige of this technique in applied economics have occasionally led to exaggerated optimism about its usefulness to handle any issue.

The Application

Although input-output models are useful and informative tool to deal with important practical policy issues; they should be developed with great care and used with prudence. The main mission of the establishment of the Malaysian Input-Output Economic Association is educate, guide, promote and empower the use and development of input-output techniques in Malaysia. This is to ensure the modeling and applications of the techniques are governed by professional body.

Applications of input-output analysis can be found in various economic sub-disciplines such as agricultural, resource, resource and environmental, transportation, energy, education, industrial ecology, international trade, sports, socio-economic and tourism economics. More recently, input-output analysis has influenced strongly in the field of global value chains, spatial studies and economic geography, reinforced by readily available large multi-regional input-output tables.


Malaysian Input-Output Economic Association is a non-governmental organization established on 17 January 2022 under the Societies Act 1966 in Putrajaya. The main function of the association is to promote, encourage and enhance knowledge and competence in the field of input-output data development and compilation, and modeling in Malaysia. The establishment of the association is expected to support and strengthen the role of International Input-Output Association (IIOA) at the international level.


The main purpose of the establishment of Malaysian Input-Output Economic Association is to educate, guide, promote and empower the use and development of input-output techniques in Malaysia. Specifically, this organization plays the following roles:


Educate, guide and promote the use of input-output techniques and analyses for planning and development in Malaysia.

Increase knowledge and competence in the field of data development and compilation, and input-output analysis in Malaysia.

Encourage the use of input-output techniques and analysis in the development and compilation of data, research and policy making in Malaysia.

Promote and stimulate the exchange of ideas among input-output technique practitioners, researchers and policy makers in Malaysia.

Assist the government in assessing the impact of development policies on the economy, social and environmental sustainability.

Assist the government in identifying key focused areas in economic planning and development at global, regional, international, state and smaller geographical locations.
Have questions?

Get in touch with us

Malaysian Input-Output Economic Association
M-1-07 Conezion Commercial, Persiaran IRC 3, IOI Resort
62502 Putrajaya, Malaysia