Malaysia bounces back from economic bumps with stable productivity growth

Overall growth of subsectors under the 9 Productivity Nexus rebounded to the average of 3.3% last year from -5.1% in 2020

by AUFA MARDHIAH / Pic by BLOOMBERG

MALAYSIA’S productivity growth rebounded to 1.8% last year with RM90,697 per person compared to -5.3% at RM89,106 per person in 2020.

International Trade and Industry Deputy Minister Datuk Lim Ban Hong said the overall growth of subsectors under the nine Productivity Nexus rebounded to the average of 3.3% last year from -5.1% in 2020.

“This is a driving factor for us to boost the nation’s productivity, targeted growth at an average of 3.6% annually from 2021 to 2025 as stated in the 12th Malaysia Plan.

“We are expecting our GDP to grow between 5.5% and 6.5% this year based on global trade, balanced commodity prices, vibrant economic activities and improvement in consumer and business sentiments,” he said during the launching of Productivity Report 2022 and Subsector Productivity Reports at the Productivity Conference today.

Furthermore, all the subsectors registered positive growth except for the retail, food and beverages, tourism and professional services.

Meanwhile, the electrical and electronics subsector registered the highest annual productivity growth at 12% due to the increasing global demand for components.

The chemicals and chemical products and machinery and equipment subsectors recorded 10.3% and 9% growth respectively.

The two-day conference includes two distinctive intellectual discourses, namely Rising Above the Pandemic-Solidifying Productivity and Competitiveness and Productivity in Action.

Meanwhile, Malaysia Productivity Corp (MPC) DG Datuk Abdul Latif Abu Seman said it has identified issues and challenges which are considered barriers hindering robust productivity growth in this country.

“We are positive that we can achieve 3.6% productivity growth this year with the transition into the endemic phase, the reopening of Malaysia’s international borders, as well as proactive and agile government policies.

“MPC continuously supports the government’s agenda through innovative collaborations and multiparty cooperation among relevant government bodies, industry associations, businesses, academic and industry experts. We hope the conference will give insights to stakeholders to improve national productivity and competitiveness,” he said.

Participants will be able to learn about the current issues and challenges, best practices and recommendations in productivity from renowned local and international speakers.

Previously, MPC has organised programmes on four key productivity drivers encompassing talent, technology, business environment and subsidy.

In the talent development programme, MPC initiated the Academy in Factory and e-Shared Prosperity Organisation Certificate of Acknowledgement Programmes to address the challenges in the workforce by tackling the issues of shortage of workers, education attainment performance and employee compensation.

In addition, to leverage digital technology, MPC initiated the Go BIG with Digital which advocates the need for mindset transformation among leaders, as well as the Malaysia Mudah initiatives which aim to reduce the unnecessary regulatory burdens on businesses and the people by 25% per annum.