MPC Reviewing Act 408 To Accelerate Productivity Growth
Kuala Lumpur, 18 February 2025 – Strengthening productivity is essential for Malaysia’s long-term economic growth and competitiveness.
Considering this, the Malaysia Productivity Corporation (MPC) is conducting a comprehensive review of the Malaysia Productivity Corporation (Incorporation) Act 1996 [Act 408] to enhance its role in driving productivity improvements and fostering a more dynamic business environment.
This review aligns with national efforts to strengthen Malaysia’s position in the global economy and build a resilient and future-ready economic framework.
MPC highlights that while Malaysia has made progress in various economic areas, productivity growth has been slower than expected, and the gap with countries such as South Korea and Singapore has widened.
Additionally, past productivity targets set in Malaysia’s development plans have been challenging to achieve, underscoring the importance of refining policies and frameworks to better support businesses and industries.
The review of Act 408 is part of a broader initiative to modernise Malaysia’s productivity landscape.
This was one of a key topic of discussion during a recent Townhall Session organised by the Ministry of Investment, Trade, and Industry (MITI), which focused on reviewing five key Acts under its purview.
The session underscored the need for updated legislation to create a more enabling environment for businesses, enhance public service delivery, and boost overall economic efficiency.
The modernisation of Act 408 is expected to bring significant benefits:
· For the Government – stronger productivity growth supports higher economic output, leading to increased revenues that can be channelled into public services and infrastructure.
· For Businesses – improved efficiency and reduced regulatory hurdles will help businesses remain competitive and achieve sustainable growth.
· For Citizens – higher productivity contributes to better job opportunities, higher wages, and an improved quality of life.
One of the key objectives of this legislative review is to position Malaysia among the world’s top 12 most competitive economies, as measured by the World Competitiveness Ranking.
To achieve this, the revised Act will focus on:
· Strengthening Institutional Capacity – empowering MPC to lead impactful productivity reforms.
· Enhancing Business Efficiency – streamlining regulations to create a more business-friendly environment.
· Accelerating Digital Transformation – supporting the adoption of technology to drive productivity growth.
· Fostering Public-Private Collaboration – engaging businesses, industry leaders, and policymakers to develop a productivity-driven economy.
“This initiative is not just about improving productivity metrics. It is about ensuring Malaysia continues to thrive as a leading economic powerhouse in Asia.
By modernising Act 408, MPC is committed to supporting businesses, enhancing government efficiency, and contributing to a better quality of life for all Malaysians,” said Zahid Ismail, Director General of MPC.
MPC encourages business leaders, industry players, and policymakers to take part in ongoing discussions and share insights to help shape a more productive and competitive Malaysia.
About Malaysia Productivity Corporation (MPC)
MPC is a statutory body under the Ministry of Investment, Trade and Industry (MITI). It drives national productivity holistically at the national, sectoral, and enterprise levels through three main thrusts: developing future talent, driving digitization and innovation, and building a robust ecosystem. It collaborates strategically with the private and public sectors by emphasising productivity as a key agenda to boost productivity growth and national competitiveness, ultimately leading to shared well-being and prosperity.
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