Malaysia achieves 85% of the labour productivity target for 11MP

At the mid-point of the 11th Malaysia Plan (11MP), Malaysia Productivity Corporation (MPC) has launched its 24th Productivity Report 2016-2017, indicating that the nation's labour productivity has grown by 3.5% in 2016 to RM78,218 from RM75,548 in 2015.

This rate was about 85% of the 11MP’s target of RM92,300 to be hit by 2020, despite the nation facing challenges such as a weaker ringgit, lower business confidence, financial market volatility resulting from the "likelihood of protectionist tendencies by certain developed countries," said the report.

Growth in Malaysia’s GDP of 4.2% at RM1.1 trillion was driven by the growth of labour productivity rather than employment, indicating that growth is gradually moving away from labour intensity and shifting towards digital and technology-driven factors. "This is the intended pattern for a productivity-driven economy, where productivity is the key factor to breach the frontiers towards Industry 4.0," as cited in the report.

Images / Challenging the Frontier, Empowering People - Productivity Report 2016-2017