BNM calls for comprehensive reform of employment sector

KUALA LUMPUR: Bank Negara Malaysia (BNM) has called for a comprehensive reform of the country’s employment sector to attract quality investments that can generate more high-skilled jobs and offer better salaries.

Governor Datuk Nor Shamsiah Mohd Yunus said currently, workers in Malaysia are not paid equitably despite playing a larger role in the production process of labour-intensive industries such as wholesale, retail and food and beverages.

She said a research by BNM revealed that if a Malaysian worker produces output worth US$1,000 (US$1 = RM4.06), the worker would be paid US$340 for it, however, the wage received by a worker in benchmark economies for producing the same output would be higher at US$510.8.

“High skills and high-wage job creations are crucial to Malaysia’s aspirations towards a high-income economy. Hence, comprehensive reforms are critical in attracting quality investments to generate more high-skilled jobs and workers.

“Beyond that, we need to reduce labour mismatches, improve labour laws and ensure that wages reflect productivity,” she told a press conference after the presentation of BNM’s 2018 Financial Stability and Payment Systems Report here yesterday.

Meanwhile, Nor Shamsiah said the central bank expects to complete the review of the Development Financial Institutions (DFI) mandates by this year.

“Work continues to progress in strengthening the capacity of DFIs to effectively contribute to economic growth and social development.

“A key development in 2018 was the implementation of an enhanced performance measurement framework to provide better capture and integrate the developmental impact and financial performance of DFIs,” she said. — Bernama