“Under the recently launched Madani economy framework, one of the seven targets to be achieved is for Malaysia to be listed in the top 12 of the World Competitiveness Ranking.

“This also implies that our productivity growth is not transformative enough to lift the country out of the middle-income trap economy sooner,” the minister said at an online launch of the Productivity Report (PR) 2023 today.

Productivity levels, he said, will improve if the public and private sectors begin to prioritise employees’ well-being and decent standards of living.

“When this happens, it is much easier to enhance employee performance and profits, which in turn makes it easier to achieve sustainable productivity.

“All of this means that the investment, trade, and industry ministry and its agencies have a monumental task ahead. I am confident, however, that all of us are up to the task and committed to achieving those Madani economy targets,” he said.

This year, Malaysia’s productivity growth is expected to be moderate at 3% amid continuous challenges in domestic and global economies, he said.

The PR 2023, themed “Sustainable Productivity” and launched by the Malaysia Productivity Corporation (MPC), provides details of Malaysia’s productivity agenda.

MPC chairman Kamaruzzaman Johari said the agency is committed to amplifying productivity improvement initiatives by focusing on talent, technology and regulations.

“MPC’s efforts encompass a broad, far-reaching approach. Its macro-level interventions, policy recommendations, and framework are curated to enable a productivity-enhanced business environment,” he added.

The report also noted Malaysia’s commendable productivity, as well as competitiveness, which climbed five places to the 27th position in the World Competitiveness Ranking 2023 by the Institute for Management Development.

This was attributed to the country’s gross domestic product growth of 8.7% in 2022 and a stronger-than-expected recovery in productivity at 5.4%.