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Boosting productivity in Malaysia


  • Hidekatsu Asada


  • Stewart Nixon


  • Vincent Koen


Productivity growth is essential to providing sustainable increases in living standards. Malaysia has reached a development stage where growth needs to be driven more by productivity gains than the sheer accumulation of capital and labour inputs. The 11th Malaysia Plan (2016-20) sets an ambitious labour productivity growth target of 3.7% per year, well above the 2% average growth recorded from 2011 to 2015. Co-ordinated structural reforms will be necessary to achieve the productivity improvements needed to attain high-income country status. Areas where reforms would deliver the greatest boost to productivity include increasing the quality of education and skills training, spurring innovation, adopting information technology more widely, fostering a well-functioning competition policy framework, improving the functioning of the labour market and the regulatory framework for small and medium-sized enterprises, fostering regional integration and raising public sector productivity. Renforcer la productivité en Malaisie Une amélioration soutenue du niveau de vie de la population n’est pas possible sans croissance de la productivité. Au stade de développement actuel de la Malaisie, la croissance doit reposer davantage sur des gains de productivité que sur l'accumulation des facteurs de production. Le 11ème Plan Malaisie (2016-2020) a fixé un objectif ambitieux de croissance de la productivité de 3,7% par an, bien au-dessus du taux de 2% enregistré entre 2011 et 2015. Des réformes structurelles coordonnées seront nécessaires pour réaliser les gains de productivité requis pour accéder au statut de pays à revenu élevé. Les réformes qui auraient le plus d’impact à cet égard touchent à la qualité de l’éducation et de la formation, à l’innovation, à un recours plus large aux technologies de l’information, à la politique de concurrence, au fonctionnement du marché du travail, au cadre réglementaire pour les petites et moyennes entreprises, à l’intégration régionale et à la productivité dans le secteur public.

Suggested Citation

  • Hidekatsu Asada & Stewart Nixon & Vincent Koen, 2017. "Boosting productivity in Malaysia," OECD Economics Department Working Papers 1370, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1370-en
    DOI: 10.1787/e8985a5b-en

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    More about this item


    competition; education; innovation; insolvency; performance review; productivity; public sector; regional integration; regulatory reform; skills; SMEs; structural reform; trade;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • F1 - International Economics - - Trade
    • G3 - Financial Economics - - Corporate Finance and Governance
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • I0 - Health, Education, and Welfare - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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