Kuala Lumpur: Malaysia’s productivity has demonstrated growth, but not at a sufficient pace, especially when compared to other economies that have evolved from similar economic conditions, stated Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He highlighted the comparative example of Malaysia and South Korea, both of which transitioned from low-income to middle-income nations, with aspirations for high-income status. In the 1970s, both nations were heavily reliant on agriculture and natural resources.
According to BERNAMA News Agency, between 1996 and 2022, South Korea’s productivity level grew at an average annual rate of 2.9 percent, while Malaysia’s productivity increased at a more modest rate of 1.6 percent per year. Tengku Zafrul expressed these concerns during his speech before witnessing the signing of a memorandum of understanding (MoU) between Malaysia Productivity Corporation (MPC) and Siemens Malaysia Sdn Bhd. Subsequently, he launched the Siemens Xcelerator Experience Centre.
Tengku Zafrul remarked that despite Malaysia’s steady growth, there is potential for more progress, particularly in light of the strong foundation established through industry reform initiatives under the New Industrial Master Plan 2030 (NIMP 2030) and other policy measures under his ministry. He noted that these initiatives have attracted a continuous inflow of high-quality foreign investment, especially in sectors like semiconductors, aerospace, and the digital economy.
He further emphasized the need for Malaysia to act swiftly and be more agile in executing its industrial initiatives without delay, stating, “Time, tide, and technology will wait for no one.” He underscored the importance of not just policy formulation, but its disciplined execution, coupled with a whole-of-nation approach. He pointed out that one of South Korea’s success factors is its investment in research and development (R and D), which accounts for over 4.0 percent of its GDP, mostly driven by the private sector. In contrast, Malaysia’s R and D investment stands at just 1.0 percent, predominantly government-driven.
Meanwhile, MPC announced in a statement that its collaboration with Siemens aims to train 10,000 industrial talents over the next three years. The Siemens Xcelerator Experience Centre will integrate advanced technologies such as digital twins, AI, and cloud computing to support industrial talent upskilling and sustainable workforce development. This initiative intends to drive Malaysia’s industrial transformation and economic growth agenda, as outlined in the NIMP 2030.
MPC further added that these efforts are expected to enhance national GDP by creating more opportunities for industries and promoting higher wages for local workers.