KUALA LUMPUR, 18 September 2019 – Malaysia’s labour productivity rose at a healthy rate in the second quarter supported by strong growth in value added and employment. Labour productivity as measured by value added per hour worked recorded growth of 2.4%, while value added per person employed grew at 2.8%.
Minister of International Trade and Industry, Datuk Darell Leiking said among the challenges in sustaining productivity growth are the external factors. Nevertheless, during this quarter Malaysia’s economy grew at 4.9% and productivity grew at 2.2%, amid the global scenario.
With the growth in value added of 4.9% and total hours worked of 2.4%, Malaysia’s labour productivity as measured by added value per hour worked by all persons, including employees, proprietors, and unpaid family workers, grew by 2.4% in the second quarter of 2019.
Construction sector continues to register the highest growth in productivity per hour worked at 3.3% compared to other sectors in the five main economic sectors.
Further analysing the services sector’s labour productivity performance, as being one of the lead contributors to Gross Domestic Production (GDP), it is evident that the sector’s performance was supported by the growth of all its subsectors namely real estate and business services subsector (4.7%), financial and insurance subsector (4.6%) and transport and storage subsector (3.7%).
From the second quarter of 2018 to the second quarter of 2019, Malaysia’s labour productivity per person employed grew at 2.8%, reflecting a 4.9% growth in value added and a 2.1% growth in employment.
Strengthening productivity is a vital element in making the economic growth more resilient and sustainable. International Monetary Fund (IMF), Managing Director, Christine Lagarde states that among the key ingredients to stimulate Malaysia’s productivity are improving governance and tackling corruption, investing in high–quality education, and boosting labour force participation of women.
Continued growth in productivity will lead to enhanced standard of living as it will improve Malaysia’s well-being by raising income per capita while enhancing society’s quality of life.