18 Feb 2025

PETALING JAYA: The Malaysian Productivity Corporation (MPC) is studying amendments to the Malaysian Productivity Corporation Act 1996 to strengthen its role in driving higher productivity and promoting a more dynamic business environment.

In a statement issued today, the corporation said productivity enhancement is critical to Malaysia's long-term economic growth and competitiveness, and the amendment is in line with Malaysia's efforts to strengthen its position in the global economy and build a resilient, future-proof economic framework.

The Gap Between Malaysia and Countries Like South Korea Continues to Widen

The statement emphasized that although Malaysia has made progress in various economic sectors, its productivity growth remains below expectations, and the gap with countries like South Korea and Singapore continues to widen.

"Furthermore, the productivity targets set in Malaysia’s past development plans have been difficult to achieve, highlighting the importance of improving policies and frameworks to better support businesses and industries."

The statement pointed out that the study of this law is part of broader efforts to modernize Malaysia’s productivity landscape.

This issue was among the topics discussed at a recent meeting organized by the Ministry of Investment, Trade, and Industry, which focused on reviewing five key laws under the jurisdiction of productivity-related institutions.

According to the statement, amending the Productivity Corporation Act to better align with modernization will bring several benefits.

For the government, stronger productivity growth can support higher economic output, leading to increased revenue for public services and infrastructure development.

For businesses, improving efficiency and reducing regulatory barriers will help them stay competitive and achieve sustainable growth.

Meanwhile, for the people, higher productivity will contribute to better job opportunities, higher wages, and an improved quality of life.

The statement stressed that one of the main objectives of the legislative review is to position Malaysia among the world's top 12 most competitive economies.

To achieve this goal, the revised bill will focus on strengthening institutional capacity, enhancing business efficiency, accelerating digital transformation, and promoting public-private collaboration.

Source: Sin Chew Online