The review aims to examine and analyze the current wage system and propose a new wage model that can be applied to increase labour compensation while promoting productivity and economic growth. This review resulted from the recommendations of the study Measures and Strategies to Increase Labour Compensation.

Released date: 

June 2024

Contact Person: 

Zul Ezwan Muhamad

(zulezwan@mpc.gov.my)

The publication by the Malaysia Productivity Corporation (MPC) outlines the Intensive e-Shared Prosperity Organisation (i-eSPO) program, which aims to enhance productivity and sustainability in Malaysian businesses. The i-eSPO program has shown considerable success, with 170 companies completing the program and substantial participation from diverse industries. For example, PERODUA Malaysia has been a strong advocate, highlighting the program’s effectiveness in promoting sustainable productivity and employee well-being. The program’s success is attributed to its ability to stimulate dialogue, knowledge sharing, and community building among organizations dedicated to shared prosperity and sustainability.

Released date:

June 2024

Contact Person:

Dr. Suriati Zainal Abidin

(ati@mpc.gov.my)

The Productive Discussion Forum on the Labor Market Scenario in Malaysia was held on 19th December 2023, with the theme "Labor Market Reform: Driving Productivity and National Competitiveness." Organized by the Malaysian Productivity Corporation (MPC), the forum has resembled panelists from employers, workers, economic experts, productivity specialists, and policy makers to delve into the issues and challenges in the Malaysian labor market. The discussions also aimed to examine the roles that all stakeholders and highlighted issues and initiatives that could ensure a robust labor market in Malaysia.

Released date: 

19 December 2023

Contact Person: 

Zul Ezwan Muhamad

(zulezwan@mpc.gov.my)

Studying a New Wage Model for Sustainable Business Growth involved reviewing and analyzing the current wage system, proposing an enhanced model to boost labor compensation, productivity, and economic growth. A comparative analysis highlighted Australia's wage governance as a model, with a statutory body overseeing the entire wage ecosystem, crucial for developing the proposed new model

Released Date:

December 2023

Contact Person:

Dr. Suriati Zainal Abidin

(ati@mpc.gov.my)

i-eSPO is a hybrid coaching program that helps SMEs to set up a wage system based on productivity and application of ESG principles. This system benefits both employers and employees by having a a structures wage system based on organization performance and / or employees’ performance.

Released date:

November 2023 

Contact Person:

Ummu ‘Ammarah Basyirah Hashim 

(ummu@mpc.gov.my)

In Malaysia, the workforce encompasses skilled expatriates and unskilled workers, both requiring valid permits—Employment Pass (EP) for expatriates and Visitor Pass (Temporary Employment or PLKS) for unskilled workers—mandated by the Immigration Act 1959/63. As of August 2023, there were 1,780,967 foreign workers with PLKS status. The Employment Act 1955, applicable in Peninsular Malaysia, outlines criteria for foreign employees, excluding expatriates who must earn at least RM3,000 a month and are not governed by the Act. The labor market faces challenges, including an overreliance on low-skilled foreign workers. To tackle this, a proposed Multi-Tier Levy Mechanism (MTLM) aims to regulate the influx of foreign workers and promote higher-value economic activities.

Released date: 

October 2023

Contact Person: 

Ummu ‘Ammarah Basyirah Hashim

(ummu@mpc.gov.my)

In 2022, foreign direct investment (FDI) constituted 67.5% of total investments, reaching RM130.7 billion, a 15% increase from the previous year. However, overall investments for 2022 decreased to RM297.5 billion, reflecting a 9.4% drop from the 2019 figure of RM328.5 billion. Concerns have been raised about Malaysia's competitive edge and appeal for high-impact industries due to delays in expatriate pass applications, with only 6.6% of the skilled workforce being expatriates, as highlighted in an industry engagement session.

Released Date: 

June 2023

Contact Person: 

Nurfayunie Pakhrururzi

(Nurfayunie@mpc.gov.my)

The report is divided into two main parts, with the first addressing labor displacement and shortage in Penang and its impact on employee compensation. The second part delves into measures and factors influencing changes in compensation, emphasizing the significance of raising labor compensation for economic improvement, uplifting low-wage workers to boost productivity, and proposing interventions. Additionally, the report assesses profit-sharing models, suggesting their potential to enhance productivity and income levels in Malaysian firms based on output-based performance.

Released date:

May 2023

Contact Person:

Siti Sakinah Mohd Zaki

(sakinah@mpc.gov.my)

A total of 106 companies participated in this award, marking the 2nd edition of the Shared Prosperity Organization Award. In the previous year, 18 organizations were recognized across various sectors and organizational sizes.

Released date:

October 2022

Contact Person:

Siti Sakinah Mohd Zaki

(sakinah@mpc.gov.my)