KUALA LUMPUR: Malaysia’a labour productivity grew by 3.3 per cent to RM74,538 per labour hour last year from RM73,091 in 2014, and has the potential to achieve growth of 3.7 per cent in the next five years as targeted under the 11th Malaysia Plan.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the optimism is based on strong industry productivity growth recorded in several key sectors such as manufacturing, construction and services.
“To expedite our ambition in realising our full productivity potential, Malaysian businesses need not only increase investment in new technologies through adoption and diffusion of the latest innovations in ICT, machinery and equipment, but must also create opportunities for further export expansion,” he added.
He told reporters this at the launch of the Productivity Report 2015/2016 published by the Malaysia Productivity Corporation (MPC).
Mustapa said the report further emphasised the utmost urgency to unleash the potential of greater productivity in Malaysia towards reaching the global frontier.
Among the strategies, he said are championing productivity and competitiveness by nurturing a competent, innovative and skilled workforce, leveraging on research and innovation, as well as increasing market competitiveness.
He said the report also called for the strengthening of entrepreneurial growth through skills enhancement and education towards greater operational excellence across the value chain.
Mustapa also said the government is currently working on a productivity blueprint which is expected to be completed in August.
He said the blueprint will look at 10 sectors with low levels of productivity, but played a very important role in the economy, such as tourism and retail.
The minister said another factor that influenced the productivity level is the performance of the country’s overall economy.
He said when the country’s gross domestic product growth moderated, productivity level shrank in parallel.
However, he said this can be offset by implementing automation and reducing dependency on foreign workers. – BERNAMA/BORNEO POST
* This news was published on June 17, 2016