M’sia aims to reduce low-skilled foreign workers
KUALA LUMPUR: Malaysia aims to slash the number of low-skilled
foreign workers in the country by around 10% to 20% over the medium term as it
moves towards becoming a high-income economy by 2020.
According to International Trade and Industry Minister Datuk Seri
Mustapa Mohamed, reducing the number of low-skilled foreign workers in the country
is high on the agenda, as the huge presence of these workers has long been a
major drag on Malaysia's productivity growth.
“The reduction of foreign workers in the country, however, has to
be done in a gradual manner; it cannot be done too drastically, lest there will
be a negative impact on industries that still need to depend on them,” Mustapa
said at a briefing after the launch of Malaysia's Productivity Report
2011/2012.
At present, there are an estimated 1.8 million registered migrant
workers in the country. Of that, an estimated 700,000 are employed in the
manufacturing sector, which is still, to a large extent, stuck in the
low-value-added chain.
“We still need to import foreign labour at this juncture,” Mustapa
said, pointing out that many companies still faced difficulties in attracting
local workers as they tended to shun low-wage jobs.
“We need to ensure that as we cut down our dependence on foreign
workers over time, we will be able to find substitution in the local
workforce,” Mustapa added.
He expressed hope that when the minimum wage policy was fully
implemented, it would help address the problem of local industries attracting
Malaysian workers.
The Government had early this month announced a minimum wage of
RM900 per month for workers in Malaysia and RM800 per month for those in Sabah,
Sarawak and Labuan.
“The implementation of minimum wage provides better quality of life
to almost one third of the workforce or over three million private sector
economies.
“To the industries, minimum wage can be a strategy to shift from
cost-competitiveness to skills and productivity,” he added.
Mustapa stressed the need for Malaysia to modernise its labour
market to become a high-income economy.
He said industries needed to create modern jobs that shifted from
manual and routine tasks to automation, higher technology and higher value
creation, as these were prerequisites to greater productivity and
competitiveness as shown by some of the most competitive nations in the world.
It is noted that Malaysia needs to have a per capita income of
US$15,000 (RM48,000) and productivity level of US$28,140 (RM78,793) to achieve
high-income status by 2020.
According to the Productivity Report 2011/2012 compiled by Malaysia Productivity Corp
(MPC), Malaysia registered a productivity growth rate of 4.6% in 2011
compared with 5.8% in the preceding year. In terms of productivity level, there
had been an increase from RM51,407 in 2010 to RM54,023 in 2011.
To achieve a high-income status, Malaysia would therefore need to
register productivity growth rate of 4% to 5% annually from now till the end of
the decade.
MPC said Malaysia's economy was expected to sustain its growth
momentum in 2012, with productivity growing by more than 4%, driven by the
construction and services sectors.
The productivity levels of the construction and services sectors are
anticipated to grow by 5.6% and 4.9%, respectively, in 2012, compared with
3.09% and 4.92% last year.
Meanwhile, the productivity of the manufacturing sector is expected
to grow at a modest 2.3% compared with 1.97% last year, as the sector remain
affected by the spillover effects of the eurozone debt crisis and the
unresolved structural problems in the US economy.
Source : The Star
Date : 16 May 2012
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