KUALA LUMPUR: Malaysia’s labour productivity rose at a healthy rate in the second quarter (Q2) supported by strong growth in value added and employment.
The Ministry International Trade and Industry (MITI) said labour productivity as measured by value added per hour worked grew 2.4 per cent, while value added per person employed grew at 2.8 per cent.
Its minister Datuk Darell Leiking said among the challenges in sustaining productivity growth are the external factors.
He said nevertheless, during this quarter, Malaysia’s economy grew at 4.9 per cent and productivity grew at 2.2 per cent, amid the global scenario.
“Gross export registered growth of 0.2 per cent, which is supported by export of manufactured goods in resource-based and non-resource-based exports that includes iron and steel and chemicals and chemicals products as well as commodities.
“Further, in total stock of foreign direct investment, Malaysia registered growth of 10.3 per cent indicating that Malaysia continues to be an international investment destination with its business-friendly approach, exhibiting Malaysia’s ability to sustain its positive productivity growth,” he said.
The ministry said with the growth in value added of 4.9 per cent and total hours worked of 2.4 per cent, Malaysia’s labour productivity as measured by added value per hour worked by all persons, including employees, proprietors, and unpaid family workers, grew 2.4 per cent in Q2.
Construction sector continues to register the highest growth in productivity per hour worked at 3.3 per cent compared to other sectors in the five main economic sectors.
Services and manufacturing sectors, both recorded 2.5 per cent growth, while agriculture sector grew at 2.2 per cent.
Mining and quarrying sector experienced a contraction of 0.7 per cent due to growth in hour worked (3.5 per cent) is larger than the growth in value added (2.9 per cent).
MITI said it is evident that the services sector’s performance was supported by the growth of all its subsectors namely real estate and business services subsector, financial and insurance subsector and transport and storage subsector.