KUALA LUMPUR: Malaysia’s labour productivity as measured by value-added per hour worked maintained at 2.4 percent in the second quarter, while value-added per person employed grew at 2.8 percent versus 2.2 percent recorded in the first quarter, according to the Ministry of International Trade and Industry (Miti).
The labour productivity per person employed which grew at 2.8 percent reflected a 4.9 percent growth in value-added and a 2.1 percent growth in employment, it said.
“Labour productivity per person employed is calculated by dividing real value added by the number of employed person by all persons, including employees, proprietors, and unpaid family workers,” it said in a statement yesterday.
Miti said productivity growth could be maximised through the utilisation of physical inputs by way of enhancing the application of knowledge embodied in the capital, labour and new technologies.
Continued growth in productivity would lead to enhanced standard of living as it will improve Malaysia’s wellbeing by raising income per capita while enhancing society’s quality of life.
However more needs to be done, to improve further in the areas mentioned, said Miti.
“Among the challenges in sustaining productivity growth are the external factors. As an open economy, Malaysia’s productivity performance is also affected by the global economic scenario, especially on trade and investment.
“In the second quarter, the global economy grew moderately at 3.2 percent due to a slowdown in several major economies caused by trade tension and declining confidence,” it said.
Nevertheless, Miti said Malaysia’s economy grew at 4.9 percent amid global scenario and gross export registered a growth of 0.2 percent supported by the export of manufactured goods in resource-based and non-resource based exports which includes iron and steel, chemicals and chemicals products as well as commodities.
In the total stock of foreign direct investment, Malaysia’s registered growth of 10.3 percent which indicated that the country continues to be an international investment destination with its business-friendly approach, exhibiting Malaysia’s ability to sustain its positive productivity growth. – Bernama
