Malaysia’s labour productivity grows at healthy rate in Q2

Gross exports registered 0.2 per cent growth, which is supported by manufactured goods in resource-based and non-resource based exports that include iron and steel and chemicals and chemicals products...

DATUK DARELL LEIKING

International Trade and Industry Minister

KUALA LUMPUR: Malaysia’s labour productivity rose at healthy rate in the second quarter, supported by strong growth in value added and employment.

The International Trade and Industry Ministry said labour productivity, as measured by value added per hour worked grew 2.4 per cent, while value added per person employed, grew at 2.8 per cent.

International Trade and Industry Minister Datuk Darell Leiking said among the challenges in sustaining productivity growth were the external factors.

He said during the quarter, Malaysia’s economy grew at 4.9 per cent and productivity at 2.2 per cent amid the global scenario.

“Gross exports registered 0.2 per cent growth, which is supported by manufactured goods in resourcebased and nonresource-based exports that include iron and steel and chemicals and chemicals products as well as commodities.

“In total stock of foreign direct investment, Malaysia registered 10.3 per cent growth, indicating that Malaysia continues to be an international investment destination with its business-friendly approach, displaying its ability to sustain its positive productivity growth,” he said.

The ministry said with the growth in value added of 4.9 per cent and total hours worked of 2.4 per cent, Malaysia’s labour productivity, as measured by added value per hour worked by all persons, including employees, proprietors, and unpaid family workers, grew 2.4 per cent in the second quarter.

Construction sector continues to register the highest growth in productivity per hour worked at 3.3 per cent, compared with other sectors in the five main sectors.

Services and manufacturing sectors both recorded 2.5 per cent growth, while agriculture sector grew at 2.2 per cent.

Mining and quarrying sector experienced a contraction of 0.7 per cent due to growth in hour worked (3.5 per cent) was larger than the growth in value added (2.9 per cent).

The ministry said it was evident the services sector’s performance was supported by growth of all its sub-sectors, namely real estate and business services, financial and insurance and transport and storage.