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‘Effective human capital management key to high-income economy’

Effective human capital management is a key priority in Malaysia’s drive to achieve a high-income economy by 2020, says Minister in the Prime Minister’s Department Abdul Wahid Omar.

“As addressed in the 11th Malaysia Plan (11MP), an accurate assessment of talent supply and demand as well as the economic costs and benefits associated with the employment of immigrant labour is crucial to understand how Malaysia could leverage immigration policy to achieve this goal,” he said.

In launching the 13th Malaysia Economic Monitor report on ‘Immigrant Labour’ by the World Bank in Kuala Lumpur today, Abdul Wahid said productivity was the key to delivering the 11MP growth targets, whereby labour productivity was targeted to expand by 3.7 percent annually on average.

“To boost multi-factor productivity as a significant source of growth, industries will be encouraged to automate and innovate, and industry-led technical and vocational education and training will be strengthened.

“In addition, reducing our dependence on low-cost and low-skilled immigrant labour will go a long way to generate a productivity-driven production base,” he said.

Greater productivity and high-income jobs would ensure Malaysia’s goal of raising employees compensation as a percentage of gross domestic product (GDP) from 34.9 percent in 2015 to 40 percent by 2020, he added.

Meanwhile, the World Bank’s Malaysia Economic Monitor focuses on the critical role that immigrant labour plays in filling important gaps in the low- and mid-skilled jobs, helping to raise both the country’s GDP and create jobs for Malaysians.

The report also projected Malaysia’s growth to remain at 4.7 percent in 2015, and easing to 4.5 percent in 2016, an outlook that reflects some slowdown in domestic demand in the course of 2015 from tighter fiscal conditions which are expected to continue in 2016-2017.

- Bernama

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