KUALA LUMPUR, July 1 (Bernama) -- The Productivity Report 2021 was launched by YB Datuk Seri Mohamed Azmin Ali, Senior Minister, Minister of International Trade and Industry (MITI) in a virtual ceremony followed by a Productivity Forum entitled Boosting Productivity: Reset, Reform, Rebound echoing the theme of the report. The theme of this year’s report emphasises key challenges and solutions for Malaysia’s productivity to bounce back from the worse contraction at -5.5% in 2020. The rebound aligns with World Bank’s projection of Malaysia’s economic growth by 4.5% in 2021.

YBhg. Dato’ Abdul Latif Haji Abu Seman, Director General of Malaysia Productivity Corporation (MPC), an agency under MITI in his opening speech said, “I reiterate the sentiment by the Senior Minister in his speech that the time now is about building the next normal for our country to be more sustainable, agile, and resilient in our economy, workforce, and society through reformative actions”.

“Productivity Report 2021’s focus is on the reforms towards boosting productivity growth, which is expected to gain its bigger momentum in the fourth quarter this year, aligned with the projection by the World Bank that Malaysia’s economy will see recovery by 4.5% this year. Gearing towards productivity rebound, Productivity Report 2021 dived into the emerging and existing challenges obstructing productivity and proposed recommendations to navigate them. Malaysia’s positive trajectory for recovery is forecasted to be contributed by the expansion of productivity performance by between 2% to 3% this year, as confidence, consumption, and trade gradually improve, supported by the ongoing vaccination plan”.

Five key drivers were identified to boost productivity focusing the areas of human capital building, digital technology, incentives and subsidies, business environment and productivity mindset. Hence, the report establishes policy intervention and regulatory reforms as imperative to manage the challenges in productivity growth that Malaysia’s regulations must be agile to adapt to the rapid changes in economy especially through regulatory reforms.

“Starting a new business is still troublesome and there are also issues in regulatory transparency, inclusivity, and predictability. Productivity Report 2021 suggested reducing unnecessary regulatory burdens through Good Regulatory Practice (GRP), increasing anti-corruption efforts and public consultation, and integrating as well as simplifying process can increase the ease of doing business in Malaysia”, he added.

Behavioural Insights (BI) approach in quality public policymaking incorporates evidence-based policymaking based on in-depth understanding of human behaviour which led to empirically tested intervention to influence attitude and decision making towards the intended action. It also highlighted on strengthening upskilling and reskilling programmes in the areas of digital and new norm skills and competencies, high-skill job requirements, and market-driven skills. The recommendations address challenges in talent mismatches, lack of digital skills, and low-skilled training programmes.

“In mitigating the slow adoption of digital technology among the public and private sector and attending to the existing as well as emerging challenges in digitalisation due to the pandemic, the report lauds strategies in Malaysia Digital Economy Blueprint (MyDigital) as timely to be implemented. It also highlights the implementation of MPC’s Go BIG with Digital initiative which is designed within 6-P framework – Promotion, Pilot, Proliferation, Protect, Prosper, and Partnership” said Datuk Abdul Latif.

According to Dr. AKP Mochtan, the Secretary General of Asian Productivity Organisation (APO) in his opening speech at the forum, “The pandemic causes two major crisis, health and economy. The pandemic impact was seen in the contraction of economic growth and productivity globally. In 2020, the International Monetary Fund (IMF) Economic Outlook predicted that the world’s Gross Domestic Product (GDP) would contract by -3.3”.

“Most of Asian countries were impacted, with contraction in their labour productivity growth. Many economies recorded a sharp downturn in the first half of 2020. However, in the second half of 2020 after lockdowns were lifted, most countries especially the advanced economies began to recover sooner than expected and registered stronger recovery in the third quarter of 2020” he said. It is estimated that in 2021, the performance will rebound as the economy improves with vaccination programmes and implementation of stimulus packages globally.

The forum featured Professor Tan Sri Dato’ Seri Dr. Noor Azlan Ghazali, Executive Director Economic Action Council (EAC), Dato’ Dr. Ir. Andy Seo Kian Haw,Co-Chair, The Special Taskforce to Facilitate Business (PEMUDAH) and Mr. Dean Parham, Productivity Specialist, Asian Productivity Organisation (APO). It was moderated by Dato’ Muhammad Noor Yacob, Board Member, Malaysia Productivity Corporation (MPC).

A copy of Productivity Report 2021 can be obtained from MPC website.

About the Malaysia Productivity Corporation (MPC)
Malaysia Productivity Corporation (MPC) is a statutory body under the Ministry of International Trade and Industry (MITI). MPC promotes productivity, quality and competitiveness to the industries and organisations in Malaysia. MPC's vision is to be the leading organisation in productivity enhancement for global competitiveness and innovation.

Released by MALAYSIA PRODUCTIVITY CORPORATION. 

Source: Malaysia Productivity Corporation (MPC)

FOR MORE INFORMATION, PLEASE CONTACT:
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Email: Atiqah@mpc.gov.my

--BERNAMA