KUALA LUMPUR: Malaysia will address pressing issues such as mismatch of labour demand and supply as well as red tape and regulatory setbacks in its upcoming economic plans.
The plans will also address low technology adoption by local companies, Minister in the Prime Minister's Department in charge of the economy Datuk Seri Mustapa Mohamed said.
He said the government would present three major plans in the next nine months namely the medium and long-term economic recovery plan, 2021 Budget and 12th Malaysia Plan (12MP).
Slated to be presented to Parliament for approval early next year, the 12MP will outline the key strategies and initiatives that will serve as a guiding principle in navigating Malaysia for the next five years (2021 to 2025.)
The 12MP will establish a clear strategic direction in ensuring inclusive and meaningful socioeconomic development to achieve a more prosperous society by 2030.
"The plan will be aligned with the Shared Prosperity Vision 2030 and the United Nations' 2030 Agenda for Sustainable Development.
"In the 12MP, new economic sectors and areas will be identified and developed to create economic opportunities for the rakyat," Mustapa said.
He said the Covid-19 pandemic had exposed various vulnerabilities in the local economy and at the same time provided a window of opportunity to implement radical reforms.
He said competition had become more intense in the last couple of decades even before the pre Covid-19.
This posed challenges for policymakers with a lot of catching up needed for the country to maintain its economic competitiveness in the Asean region.
"Bold strategic shifts are necessary to address low value-added economic activities, inequitable income distribution and regional disparity.
"Development for all, addressing wealth and income disparities, and achieving a united, dignified, and prosperous nation must be our clarion call," he said in his keynote address at the 2020 Malaysian Banking and Finance conference here today.
Mustapa added that the government would do its best to boost Malaysia's economic competitiveness and attract quality investments.
The government recently launched "MyMudah" initiative to streamline unnecessary bureaucratic hurdles.
It is also aimed at assisting companies and businesses which were burdened by red tape and bureaucracy.
Citing the World Bank, he said businesses in Malaysia needed 17 days to deal with procedures related to starting a business compared to only 1.5 days in Singapore and Hong Kong and eight days in South Korea.
Mustapa said the country's high reliance on low-skilled foreign workers was contracting the economy's ability to compete effectively.
This was due to the mismatch between labour demand and supply, in particular the unemployment of youth and fresh graduates with the low percentage of skilled workforce.
"Less than a third of our workers are in the skilled category. This has barely improved in the past 10 years. In 2019, non-citizen workers make up about 32 per cent of total employment in the agriculture sector.
"Additionally, 23 per cent in the construction sector, 22 per cent in the manufacturing sector and about 10 per cent in the services sector," he said.
Mustapa said the government had also upgraded the national employment services portal, MYFutureJobs, providing job that matches services for job seekers to secure work tailored best to their skills and competencies.
"When there is a mismatch between the skills of the job seekers and the jobs available, they will be linked to opportunities to be reskilled and retooled," he said.
The government will also ramp up the country's digital agenda with the acceleration of technology adoption and automation, especially for small and medium enterprises.
"This will not only increase efficiency and productivity, but will also help to reduce the reliance on low-skilled workers," he said.