From the Tiny Acorn Grows a Mighty Oak

Malaysia Productivity Corporation (MPC) to boost productivity for Malaysia's long-term growth

Bottlenecks, delays, excessive regulation and a lack of resources can contribute to inefficiency within our business ecosystem. Entrepreneurs have to spread their focus between improving the mobility of resources or manpower, to easing the facilitation of trade and exports of their goods. This is how productivity has become one of the most important factors in Malaysia’s long-term growth, as it can influence how quickly businesses can adapt to macroeconomic challenges or sudden shifts in the global economy. 

In line with the objectives of Industry 4.0, the Malaysia Productivity Corporation (MPC) has vowed to revamp the way our nation tackles productivity in our workforce and industry structure. Under the Eleventh Malaysia Plan, productivity was identified as the most crucial aspect of implementation, calling for initiatives to boost productivity in a focused and targeted manner. Thus, the Malaysia Productivity Blueprint which identified 9 key productivity nexuses that were segmented into national, sectoral and enterprise levels. 

Since the Blueprint was introduced in 2017, Malaysia’s private sector has led the reforms of industrial growth into becoming more internationally competitive by 2020. This article highlights how industries have transformed their regulations and resources in a more balanced and transparent manner. These include innovations in labour, technology and dealing with bureaucratic red tape. 

As the leading organisation in productivity enhancement, the MPC spearheads initiatives that focus on consistently improving the nation’s productivity. They have adapted their course of action in many different ways, to accommodate a variety of stakeholders in the private and public sector, as well as enhancing efficiency within both government and independent bodies. Now that we are in at the age of the Internet of Things (IoT) and must adapt to working digitally, there can be many bottlenecks that crop up within the enterprise level. Thus, MPC has been mandated in accordance with the Tenth and Eleventh Malaysia Plan to improve the progress of key economic sectors, towards the creation of a holistic and conducive business ecosystem.

These key sectors have become known as the 9 Productivity Nexuses, which encompass businesses in private healthcare, machinery & equipment, chemicals & chemical products, electrical & electronics, agro-business, ICT, professional services and retail (including food & beverage). MPC is responsible for overseeing the productivity initiatives led by each Nexus, but they have also pledged to consistently design new approaches to aid SMEs and MNCs combat failures within their regulatory system and workforce productivity. 

Dato’ Abdul Latif Haji Abu Seman, Director-General of MPC

Dato’ Abdul Latif Haji Abu Seman, Director-General of MPC, shares on how digitalisation will boost Malaysia’s long-term productivity growth, and MPC’s action plans to steer itself into the direction of Malaysia’s digitalisation. 

Digitalisation is inevitable, and MPC has welcomed the boom and potential of digitalisation in recent months. MPC will assist the Digital Productivity Nexus (DPN) as one of the 9 sectoral productivity nexus established in the Malaysia Productivity Blueprint, and effectively aid implementation of all their announced incentives. These initiatives will benefit industry players by empowering businesses to adopt digitalisation in the bid to boost productivity. 

Digitalisation can be a boon to a country’s long-term development. It can spell productivity growth for a nation, and highly productive economies have proven themselves capable to adapt quickly to technological changes. DPN is relentlessly spurring this evolution forward and has embarked on the “Go BIG with Digital” initiative which aims to achieve breakthrough productivity via technological innovation. The goal of creating huge and drastic impacts in businesses will be achieved by catalysing a new wave of productivity growth, strengthening integrity and empowering the adoption of good values and best practices that can lead to improved productivity within companies. 

MPC has taken the opportunity to pursue productivity culture-building programmes with external organisations using online platforms with industries and other government agencies. MPC has wasted no time in setting up virtual advisory services through webinars, virtual advisory clinics and virtual training. 

They are in the midst of encouraging productivity training in institutes of higher learning to one-up the competition. These online platforms are used for knowledge sharing, with video competitions and prize-giving incentives on the Productivity Linked Wage System (PLWS). 

Experts are also given the opportunity to conduct online training such as C-Suite Executive Training for aspiring business leaders, or those looking to embark on “new norms” and how to engage and maximise their employees’ productivity during the Recovery Movement Control Order (RMCO). 

During this period, MPC worked together with technical experts to help facilitate the business recovery process for SMEs by using e-Business Solutions to rebuild morale and revive local businesses. Effectively, the quarantine period could be used productively, as a chance for firms to enhance their own soft skills. Other types of online facilitation are the KOPI CHAT session, an online business consultancy on Cost-Effective 14.0 Solutions, Understanding New Normal for SMEs, Module Revision, and Pitching session. A total of 14,104 participants attended these programmes, with an average of 150 participants per programme.