driving productivity of the nation -...
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DRIVING PRODUCTIVITY OF THE NATION Malaysia Productivity Blueprint (MPB)
Sarimah Misman (Director, MPC)
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Projek usahasama di antara PBB dan Kerajaan
Persekutuan bersama Pertubuhan Buruh
Antarabangsa
( ILO) sebagai agensi pelaksana
Majlis Produktiviti Negara ( Incorporation ) Akta No. 19
ditukar menjadi Perbadanan Produktiviti
Negara
Perbadanan Produktiviti Malaysia telah ditawarkan
pada 21 Februari 2008
1962 2008 1991
Pusat Daya Pengeluaran
Negara
Perbadanan Produktiviti Negara
Perbadanan Produktiviti Malaysia
2 2
Transformasi . Inovasi . Perkongsian
3 3
MISI To deliver high impact services towards achieving performance excellence through innovation for the betterment of life.
VISION
MISSION
The leading organisation in productivity enhancement for global competitiveness and innovation.
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Providing value-added information on productivity, quality, competitiveness and best practices through research activities and databases;
Developing human capital and organisational excellence for building a knowledge-based society through training, systems development and best practices;
Conducting review on regulation and promoting Good Regulatory Practice to create a more competitive business environment; and
Nurturing innovative and creative culture for productivity and competitiveness through partnership programmes
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02
03
04
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Kepala Batas, Penang
Kuala Terengganu,Terengganu
Kota Bharu,Kelantan
Kuantan,Pahang
Kuching, Sarawak
Kota Kinabalu, Sabah
Johor Bahru, Johor
MPC HQ, Petaling Jaya, Selangor
MPC PJ8 Petaling Jaya, Selangor
MPC has consistently aligned its strategies with the nation's five-year economic plans
1. MPC data. Productivity levels based on constant 1987 prices between 1960 – 2000, and on constant 2000 prices in later periods. 2. Data and achievements for first column based on 1980-1990 information. 3. Productivity growth and level data from 2005 onwards are MPC estimates 4. National Chambers of Commerce and Industry of Malaysia 5. Over previous period average Source: MPC
Management
Training &
Advisory
Services
Research &
System
Development
Productivity &
Efficiency
Enhancement
Benchmarking
&
Best Practices
Competitiveness
&
Innovation
Industrialization
5.2%
RM13,768
Productivity
improvement
3.9%
RM17,233
Knowledge-driven
economy
2.4%
RM42,048
Balanced growth
3.8%3
RM48,552
Malaysia 5-yr Plan
Focus
Driving Productivity of the
Nation
3.7%4
RM92,300
1960 1990 1995 2000 2005 2010 2015
• Established as mgmt
training organisation
• 1st Nat'l Productivity
Campaign
• Consultative panels
for research focus
• 1st Annual
Productivity Report
• TFP measures for
national & sector
output
• Service Efficiency
Award by NCCI4
• Became partner
institute with IMD
and WEF
• Won UN Public
Service Award
• 2.5X increase in
programs and
participants5
• Secretariat to Doing
Business focus
groups
Smart
Regulation
Delivery
Management
Office
Beyond 2020
• 9 Nexus lead by Indusry champion
formed
• Institutionalise DMO in MPC to
coordinate , monitor , & evaluate
implementation of initiatives
2.3%2
RM13,029
Productivity Growth
& Level1
MPC Achievements
Improvement in
infrastructure
MPC's priorities have expanded since its inception
GDP growth
Labour productivity growth
CAGR
Employment growth
4.80% 4.48% 5.29%
3.13% 1.00% 1.82%
RMK8 RMK9 RMK10
1.62% 3.45% 3.40%
RMK-11 target
3.7%
5.6%
Source: EPU, DOS, RMK11, RMK10, RMK9, RMK8 Note: CAGR starts a year before the RMK period to take into account the growth in the first year of the RMK.1995-2015 data from DOS in chart at current prices. GDP values are based on 2010 prices, EPU. Employment growth RMK-11 target based on estimation from RMK-11 Appendix, A5-2, RMK11 targets are obtained from RMK11 document
2.1%
If productivity remains at status quo, Malaysia is at risk of losing value-add of ~RM120Bn
Malaysia’s Productivity sti l l lacks behind
Productivity level lacks behind developed countries and
80 70 60 50 40 30 20 10
0
4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5
3.6%
1.3%
2.0%
0.8%
-0.1%
1.1%
69
55 60
36
46
29
Malaysia Japan Korea
Singapore
Australia United States
Output per Hour Worked
Growth
grows slower compared to emerging Asia
Level of Productivity and Growth (Malaysia & selected Asian Countries) 2017
35 30 25 20 15 10
5 0
4.0 3.9 3.8 3.7 3.6 3.5 3.4 3.3
3.6%
3.4% 3.5%
3.9%
5
13 14
29
Malaysia Thailand Indonesia Vietnam
Output per Hour Worked
Growth
developed countries… Rank 2010 2016 2017
1 Luxembourg Luxembourg Luxembourg
2 Norway Norway Norway
3 Belgium Ireland Ireland
… … … …
10 Switzerland Sweden Sweden
11 Sweden Switzerland Switzerland
12 Austria Singapore Austria
13 Singapore Austria Singapore
14 Finland Australia Australia
… … … …
17 United Kingdom United Kingdom United Kingdom
18 Canada Spain Spain
… … … …
45 Chile Malaysia Malaysia*
46 Malaysia Chile Chile
… … … …
55 Sri Lanka Ecuador Thailand
56 Thailand Thailand Ecuador
57 Indonesia Indonesia Indonesia
Ranking of International Productivity for Malaysia is stagnant
Ranking by labor productivity per hour worked USD (2017)
*Malaysia ranked 45th out of 63 countries
• The Malaysia Productivity Blueprint (MPB) was launched by YAB Dato’ Sri Mohd Najib Tun Haji Abdul Razak on 8 May 2017 at the Prime Minister’s Office
• As per the targets set in the Eleventh Malaysia Plan (2016-2020), the MPB aims to achieve 3.7% labour productivity growth per annum.
• The private sector, in partnership with the Government will be the key driver for this productivity agenda.
Malaysia Productivity Blueprint
1.1%
9.6%
Mining and Quarrying
Construction
6.3%
2.2%
Malaysia Productivity Blueprint
11MP has set the target to achieve national labour productivity growth of …
Driving Productivity of the Nation
To achieve this national target, each sector must raise labour productivity growth to target levels
3.7% ; RM92,399
2017 2020
2.6%
4.1%
3.6%
Manufacturing
Services
Agriculture
4.2%
4.7%
1.5%
Year
2020
2017 3.6% ; RM81,039
annually
Main Economic Sectors Labour Productivity, 2015 and 2016
12
10
8
6
4
2
0
120,000
100,000
80,000
60,000
40,000
20,000
0
3.4 55,485
Services Construction Manufacturing Agriculture
1.4
106,647
12.4
40,018 2.8
68,166
RM Growth (%)
2015 Growth
2016
Pri
ori
ty S
ecto
rs
M&E 4.7% 5.7%
Chemicals 2.5% 4.7%
E&E 5.9% 3.8%
NATIONAL-LEVEL INITIATIVES
SECTOR-LEVEL INITIATIVES
ENTERPRISE-LEVEL INITIATIVES
Outline policy priorities to uplift national productivity • To be led by core government ministries and agencies • Targets governance of productivity policies impacting all economic sectors
Outline explicit sector strategies to address sector-level productivity barriers • To be led by key industry associations and anchor enterprises for each sector • Targets acceleration of productivity uplift, impacting large enterprises and SMEs at sector level
Outline specific enterprise strategies to enhance operations related to productivity improvement • To be led by management at enterprises (including SMEs) with guidance from sector Productivity Nexus • Targets productivity improvement at enterprise level
The Blueprint Outlines • Productivity must be addressed holistically and in tandem – at the national, sector and enterprise levels
• Strong coordination and governance are key to securing implementation certainty • Productivity needs to be top of mind movement and embedded into day-to-day work culture
Driving Productivity of the Nation
Talent Technology Structure Incentive
Environment Business
Mindset Productivity
Challenges
Thrusts
5 Strategic Thrusts aimed at addressing challenges impeding Productivity Growth across sectors
Restructuring workforce by raising the number of high-
skilled workers, tightening entry of lowskilled workers,
and meeting demands of the future economy
Strengthening the readiness of
enterprises to effectively adopt
and exploit technology and
digital advantage (such as 4th Industry
Revolution)
Reducing reliance on non-critical
subsidies, linking financial assistance and liberalisation efforts to productivity outcomes,
and strengthening industry positioning in higher value add
segments of the value chain
Addressing regulatory
constraints and developing a robust
accountability system to ensure
effective implementation of regulatory reviews
Embedding culture of productivity
through nationwide movement, and
driving accountability in productivity
performance through effective governance
mechanism
National level: 5 thrusts and 10 initiatives with 16 activities
Driving
Digitalisation &
Innovation
Securing a strong
implementation
mechanism
Forging a Robust
Eco-system
Making Industry
Accountable for
productivity
Building
Workforce
of the Future
Enforce structural changes to the workforce by formulating a comprehensive labour market policy including reducing
reliance on low wage and low skilled workers N1
Conduct national strategic workforce planning in anticipation of changing needs across the sectors N2
Strengthen readiness, knowledge and adoption of technology across sectors N3
Realign key grants, incentives, soft loans and other funding mechanisms to link productivity metrics
and outcomes to incentivise productivity improvement
N6
Accelerate efforts to enhance whole-of-government approach towards addressing regulatory constraints N7
Institutionalise a strong coordination and governance model to secure implementation certainty across government,
industries, and enterprise levels
N9
Strengthen digitalisation among SMEs through e-commerce and adoption of innovative technology N4
Gradually reduce reliance on non-critical subsidies, and ensure liberalisation efforts are linked to productivity outcomes N5
Establish an accountability mechanism for the implementation of regulatory reviews by the government N8
2
3
4
5
Launch nationwide productivity movement to inculcate stronger culture of productivity across all segments of society N10
1
Initiatives Thrusts
These initiatives complement other medium- and long-term incentives which are on-stream, such as implementation of the
National Education Blueprint. These initiatives must be implemented urgently over 18-24 months to accelerate productivity in the
ecosystem
9 Priority Subsectors
Retail and F&B Chemicals & Chemical Products
Electrical and Electronics
Machinery and
Equipment
Tourism Agro-food
ICT Professional Services
Private Healthcare
Contribute to 30% of Malaysia’s GDP, and 40% of total employment
Workforce Technology Industry Eco-system Structure
Driving Productivity of the Nation
Thrusts
Mind set
Led by 9 PRODUCTIVITY
NEXUS CHAMPIONS
YBrs. Dr. Nungsari Ahmad Radhi Agro-Food
YBhg. Dato’ Wong Siew Hai Electrical and Electronics
YBhg. Datuk Dr. Hapiz Abdullah Chemicals and
Chemical Products
Mr. Mac Ngan Boon Machinery and Equipment
YBhg. Dato’ Bruce Lim Aun Choon Retail and Food & Beverages
Mr. Ganesh Kumar Bangah ICT
YBhg. Dato’ Dr. Jacob Thomas Private Healthcare
Mr. Uzaidi Udanis Tourism
YBrs. Ts. Choo Kok Beng Professional Services
16
1 2 3 4
5 7
8
9
6
SECTOR-LEVEL INITIATIVES
PRODUCTIVITY NEXUS
Business Opportunity
Government Who oversees the Productivity Nexus The Delivery Management Office (DMO) under the Malaysia Productivity Corporation is responsible to monitor the successful transformation of sectors under the Nexus.
Productivity Nexus is a key agent empowered by industry associations which support enterprises to improve visibility of the implementation progress. The roles of Productivity Nexus are:
a. SUPPORT SECTOR-LEVEL INITIATIVE Improve awareness, understanding and adoption of sector level initiatives
c. ENABLE ENTERPRISES THROUGH KNOWLEDGE SHARING
Develop and disseminate tools for enterprises to implement productivity enhancement programmes
b. EMPOWER ENTERPRISES TO HELP THEMSELVES Productivity consultants and masterclasses to baseline challenges and share best practices
Industry Association
Productivity Nexus Champion
Industry Productivity
Specialist Productivity Tools
Business Community
9 Productivity Nexus 1.Retail and F&B 2.Electrical and Electronics 3.Chemicals and Chemical
Products 4.Machinery & Equipment 5.Tourism 6.Agro-food 7.ICT 8.Professional Services 9.Private Healthcare
Enterprise-Level Initiatives
Driving Productivity of the Nation
Strategy and Leadership
Source: MPB
• Enterprise Productivity Programme.
• provides a customised and hands-on approach to increase the productivity
• The firm-level intervention:
• diagnostic toolkits • using existing R&D intermediaries
(Public-Private Research Network (PPRN), PlaTCOM, Steinbeis and SIRIMFraunhofer)
Integrated diagnostic tools