Kuala Lumpur:Malaysian manufacturers are being urged to hasten the adoption of automation to enhance productivity and decrease reliance on foreign labor, according to Deputy Investment, Trade and Industry Minister Sim Tze Tzin.

According to BERNAMA News Agency, the government has progressively reduced the foreign workforce quota from approximately 20 percent to 15 percent. Currently, foreign workers constitute 13 percent of the total workforce, with a target to decrease this to 10 percent by 2030.

Sim emphasized that while the reduction is gradual, the pace of automation adoption is too slow. He noted that every sector has been informed about these changes and understands the challenges. The adjustments are designed to give businesses time to adapt without being abrupt.

Excessive dependence on foreign workers may deter companies from investing in automation and upgrading their manufacturing processes. Sim pointed out that industries tend not to automate when foreign labor is easily accessible, limiting their potential for advancement and keeping the nation at a middle-income level.

He highlighted that Malaysia has been trapped in a middle-income status for over 30 years. To achieve a high-income economy, the country must enhance productivity, skill sets, and economic complexity.

Analysis of productivity trends shows that while Malaysia, South Korea, and Singapore had similar trajectories in the 1970s and 1980s, South Korea and Singapore experienced stronger productivity growth in the 1990s. Sim stressed the importance of addressing this issue for Malaysia to advance towards high-income nation status and adopt advanced technologies, which would elevate income levels.

Sim urged manufacturers not to wait until 2030 to implement automation. Although some are making the transition, it is happening too slowly, and he encouraged them to begin the process immediately.