Recently, the Malaysia Productivity Corporation released the annual Productivity Report 2016/2017, giving an account of the country’s productivity performance in 2016. Malaysia’s productivity rose 3.5% in 2016, up from 3.4% in 2015, but was slower than the 3.7% growth target set for the 11th Malaysia Plan. Similarly, the 1.9% growth rate of the all-important total factor productivity was also lower than the targeted growth rate of 2.3%.
Subscribers of i Capital would know that productivity is one of the favourite topics of i Capital and Tan Teng Boo because sustainable economic growth and development can only be achieved though continued improvement in productivity, in particular total factor productivity. An ongoing increase in total factor productivity is the main reason why developed countries can stay competitive despite rising cost of labour. Although the prime minister has launched the Malaysia Productivity Blueprint last month, aimed at raising the country's productivity to new heights, the low profile given to it is a concern. It is at risk of becoming just another one of the many blueprints that the government has unveiled over the years and the colour changed due to dust gathering on its cover!