Tuesday 22/04/2025

CONFERENCE ON BEHAVIOURAL INSIGHTS IN POLICYMAKING FOR PRODUCTIVITY 2025
   
21 APRIL 2025
KUALA LUMPUR

YBhg. Datuk Zahid Ismail
Director General 
Malaysia Productivity Corporation (MPC)
 
YBrs. Mr. Md Zainuri Juri
Principal Officer
Program Directorate
Asian Productivity Organisation (APO) 
 
Esteemed speakers and moderators
 
Distinguished guests, ladies and gentlemen.
 
Good morning and Salam Malaysia MADANI..
 
1. It is an honour and a pleasure to welcome all of you to the Conference on Behavioural Insights in Policymaking for Productivity 2025. This year marks the 5th edition of the conference, and it is a significant milestone for us, as we celebrate not only the continued success of this event since its inception in 2020, but also our first-time collaboration with the Asian Productivity Organization (APO) to organize this conference.   
 
2. Since it started, this conference has served as an invaluable platform for knowledge exchange, sharing innovative ideas, and shaping policies that contribute to productivity improvements across all sectors of our economy. The addition of APO to this year’s event adds an important regional dimension, enriching our discussions and aligning them with global best practices. This clearly reflects of our shared commitment to building a more productive and sustainable future for Malaysia and other member economies.
 
Ladies and gentlemen,
 
3. Malaysia’s productivity per employee rose from around RM89,000 in 2020 to approximately RM99,000 in 2024. 
 
4. Although 2020 was difficult, we saw a rebound in 2021 and 2022. By 2024, productivity growth stabilised at 2.4%.
 
5. This progress is a reflection of Malaysia’s resilience. To go further, we cannot rest on old methods. We must adopt fresh approaches that better understand and reflect real human behaviour. 
 
6. Here is where Behavioural Insights (BI) can help us. By understanding why people make decisions, we can design people-centred policies, leading to better results for everyone.
 
7. Malaysia has used BI in a few areas. We saw how well-chosen messages and reminders improved health check-up rates and reduced student absenteeism. These successes show that if we consider how real people act, we can create solutions that are embraced, not resisted.
 
8. In terms of productivity, we face many pressing issues. One significant challenge is tariffs. Tariff structures can be complicated. Recently, the tariffs imposed by the United States would increase costs for many Malaysian businesses, especially exporters. 
 
9. These tariff challenges can reduce our overall productivity. When businesses spend too much time and money dealing with tariff procedures, they have fewer resources for innovation and growth. 
 
10. This affects the bottom line of companies and slows our nation’s drive towards higher productivity. These barriers are sludge in the system, and we will hear later from international experiences of removing sludge.
 
11. Apart from these sludge barriers, we can also make things easier. BI can offer practical solutions to address what we can control. We can enable easier compliance by simplifying systems as well as the information on how tariffs are presented to exporters. Instead of long, technical documents, we can develop clear, concise and easy to understand guidelines. 
 
12. We can employ digital tools that use everyday language and visual aids to help businesses follow the rules more easily.
 
13. BI can encourage timely compliance. Sometimes, companies delay updating their tariff declarations or paying fees because of confusion. 
 
14. Targeted reminders, sent at the right moment, can reduce lastminute rushes and speed up processes. This helps businesses plan better and keeps government operations running smoothly.
 
15. Voluntary compliance is stronger when rules are transparent, and benefits are clear. For businesses dealing with tariffs, seeing the cost savings and smoother processes will not only motivate them, but enable them to comply. 
 
16. From the government side, more accurate filings mean fewer investigations and less money spent on enforcement. Both sides gain.
 
17. This aligns with our core national priorities under the 13th Malaysia Plan (RMK13) and Malaysia MADANI aspirations, which call for balanced progress that uplifts every citizen. 
 
Ladies and gentlemen,
 
18. Higher productivity means businesses can pay better wages and invest in local development. If we remove policy and regulatory barriers or simplify them through BI strategies, we unlock new opportunities for small and large firms alike. This strengthens our supply chains and fosters local innovation.
 
19. The MPC stands ready to support these efforts. As the lead agency for productivity, we can coordinate with other ministries and external partners like the APO. 
 
20. We can develop best practices and share success stories across sectors by pooling our expertise. We also welcome the chance to learn from others who have explored BI in public policy.
 
21. To all stakeholders, I encourage you to embrace this approach. Reflect on how BI can shape decisions in your organisations. Encourage your teams to test small-scale BI projects. Share your findings so that we can learn from one another.
 
22. Let us keep productivity at the top of our agenda. By applying BI to the stages of policy development, we can make compliance easier and foster a conducive environment for businesses.
 
23. We have witnessed how adopting a BI approach helps increase policy compliance. Let us bring these insights to scale, guiding the next generation of policymaking.
 
Ladies and gentlemen,
 
24. Let this conference be an eye-opener that enhances your understanding and application of BI. To our international guests, we hope your time here is both enriching and enjoyable, and that you experience the true warmth of Malaysian hospitality during your stay in Kuala Lumpur.
 
25. On that note, I am honoured to officially declare the Conference on Behavioural Insights in Policymaking for Productivity 2025 open. 
 
26. I look forward to the fruitful discussions and collaborations that will arise, and I assure you of MPC’s commitment to championing BI-driven strategies for productivity and growth. Thank you, and I wish everyone a productive and engaging conference.


SOURCE : Malaysia Productivity Corporation (MPC)

FOR MORE INFORMATION, PLEASE CONTACT:
Name: Nik Haneez Amizan Nik Rosdi
Tel: 019-7181804 
Email: nikhaneez@mpc.gov.my

--BERNAMA