MPC to include foreign workers’ contribution to productivity performance

KUALA LUMPUR: The Malaysia Productivity Corporation (MPC) will include foreign workers’ contribution to productivity performance beginning in 2018 to measure real labour productivity, says Director-General Datuk Mohd Razali Hussain.

“We are going to the heart of this, in terms of identifying what is the real productivity coming from our local employees as well as those from the foreign side.

“Going ahead is more in terms of making sure that we are efficient and effective. We really need to look at the issues in terms of the utilisation of innovation and workforce,” he told reporters after the launch of Productivity Report 2017/2018 by International Trade and Industry Minister Darell Leiking yesterday.

In 2017, Malaysia registered a labour productivity growth of 3.8 per cent at a productivity level of RM81,268 as against RM78,294 or an increase of 3.5 per cent in 2016, which contributed to a higher economic growth of 5.9 per cent while employment grew 2.0 per cent.

The labour productivity growth performance has exceeded the national target of 3.7 per cent under the 11th Malaysia Plan. In terms of value level, it attained 88.0 per cent of the 2020 target of RM92,300.

According to the report, the mining sector recorded the strongest performance with growth in labour productivity at 6.8 per cent, followed by services (5.0 per cent), manufacturing ( 4.3 per cent), construction (2.4 per cent) and agriculture (1.4 per cent).

Among selected Asian countries, Malaysia is at US$64,259 in terms of labour productivity per person employed, ahead of Thailand at US$ 31,515, China (US$30,099), Indonesia (US$26,336) and the Philippines (US$20,096).

However, Malaysia’s productivity growth lagged behind that of China’s 7.1 per cent, India’s 4.3 per cent and the Philippines’ 3.9 per cent.

Moving forward, Malaysia’s labour productivity is anticipated to expand between three per cent and four per cent in 2018 and will benefit from the positive economic growth, which is estimated at between 5.5 per cent and 6.0 per cent this year.

Darell said Malaysia must continue to pursue further improvements in productivity across all economic sectors, in order to retain its global competitiveness.

“This requires a holistic transformation, requiring productivity improvements to be charted differently, not only in terms of technology, regulations, industry structure, talent and skills, and productivity drive, but more importantly in terms of mindset at all levels,” he noted.

Darell said the government would ensure the economy is driven by innovation by introducing policies that encourage businesses, especially small and medium enterprises, to succeed.

He pointed out that policies geared towards a competitive open economy, investment and productivity will be strengthened to ensure Malaysia continues to record sustainable growth. — Bernama