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:

Oct 2022

Contact Person:

Siti Sakinah Mohd Zaki (sakinah@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)

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 Dec 2023

Contact Person: 

Zul Ezwan Muhamad

(zulezwan@mpc.gov.my)

Technical Working Group on Human Capital (TWGHC) was established to address issues related to human capital. Its main goal is to review existing policies and regulations to make them more efficient and effective, ultimately boosting the country's productivity by developing a skilled workforce. The TWGHC collaborates with stakeholders and industry players, analyzes current policies, and seeks input from various groups, including trade associations and academic institutions. The aim is to provide well-informed recommendations to PEMUDAH, enhancing human capital policies for economic growth, productivity, and competitiveness.

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: 

Oct 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)