MITI: M’sia’s 2018 labour productivity up 2.2 pct

KUALA LUMPUR: Malaysia’s labour productivity grew 2.2 per cent year-on-year (y-o-y) to RM91,971 in 2018 from RM89,925 previously, said International Trade and Industry Minister, Datuk Darell Leiking.

Citing the Productivity Report 2018/2019 launched today, he said the services sector recorded the highest growth of 3.5 per cent yo-y to RM86,921, followed by construction (+ 3.4 per cent y-o-y to RM43,882) and manufacturing (+ 2.4 per cent y-o-y to RM121,841).

“This year, the manufacturing sector is projected to grow at 4.8 per cent, underpinned by the shift towards high valueadded, diverse and complex products.

“Meanwhile, the services sector is expected to sustain its growth momentum at a lower rate of 5.7 per cent in 2019,” he said in his speech at the launch of the Productivity Report 2018/2019 and the Ministry of International Trade and Industry ( MITI) Report 2018 yesterday.

Although manufacturing and services sectors registered y-o-y growth of 2.4 per cent and 3.5 per cent, respectively, in 2018, the Productivity Report 2018/2019 showed that the figures were still lower than 3.9 per cent and 4.2 per cent, respectively, recorded in 2017.

At a press conference after the launching ceremony, Leiking said the decline in growth was mainly due to weaker exports amid the global trade uncertainty.

“Malaysia is a manufacturing nation, obviously, there are issues relating to exports as many countries have made less orders and contracts.

“But we are not the only country that is feeling the heat from the ongoing USChina trade war...And we still see good diversion and good orders from other countries,” he said.

Asked which sector would benefit the most from trade diversion, Malaysia Productivity Corporation (MPC) chairman Chua Tian Chang said it was expected to be the electrical and electronics sector.

Leiking also said the government would strive to mitigate the impact from the trade conflict as well as the challenges looming ahead for the country.

On the foreign investment outlook, remained positive that direct he it would continue to grow at year-end.

Meanwhile, Leiking also agreed with the comments made by International Monetary Fund (IMF) managing director Christine Lagarde on Monday that Malaysia needed to increase its productivity if it is to achieve its goal to become a high-income nation in the next decade.

“I think Malaysia is productive, but we (the government) need to identify our shortcomings.

“And we also need to ensure that from now on, our education is focusing on jobs of the future, such as digitalrelated jobs, at the same time, ensuring that the productivity continue to grow,” he added.

Themed “Driving Productivity of the Nation”, the 26th edition of the Productivity Report 2018/2019 is published by MPC, with the findings and analysis in the report based on productivity data released by the Department of Statistics Malaysia. — Bernama

This year, the manufacturing sector is projected to grow at 4.8 per cent, underpinned by the shift towards high value-added, diverse and complex products.

Datuk Darell Leiking