KUALA LUMPUR, 30 JUNE: Malaysia’s global competitiveness was placed 25th out of 64 economies in the World Competitiveness Yearbook 2021, an increase from 27th place in 2020. Malaysia was ranked second among 190 economies in dealing with construction permits in the World Bank’s Ease of Doing Business 2020 ranking, according to International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali.
“However, while this demonstrates that reform initiatives are working, there is still more to be done to ensure that our regulations are agile enough to respond to changes,” he said during the virtual official launch of “Productivity Report 2021 — Boosting Productivity: Reset, Reform, Rebound” in his speech.
Meanwhile, Datuk Abdul Latif Abu Seman, director-general of the Malaysia Productivity Corporation (MPC), said the Productivity Report 2021 takes a different approach this year, focusing directly on the issues and challenges that impede productivity growth in the face of the worst health and economic crisis, as well as the recommended solutions to overcome these obstacles.
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This year’s topic for the study summarizes the process — reset and reform — that finally leads to a productivity rebound in addressing the pronounced obstacles to productivity and in the drive to enhance its growth.
“The report’s suggestions are in line with the government’s goal, which includes different economic stimulus programs and recovery strategies. The ideas, if properly implemented, are projected to boost productivity development and, as a result, improve company revival and recovery,” he added in his welcome speech.
Regulations have a significant part in the corporate climate, according to Abdul Latif, because they make it easier to do business.
“It’s more important than ever to address industry regulatory concerns, particularly from enterprises hit by the epidemic, in order to speed up their recovery.”
“To eliminate superfluous regulatory burdens on firms and design policies that are more conducive to business efficiency, regulatory reform is required.” PEMUDAH, or the Special Taskforce to Facilitate Business, has been consistent in regulatory reforms, with MPC as the secretariat,” he stated.
Meanwhile, Mohamed Azmin stated in the report that the prognosis for Malaysia is optimistic, as seen by the National Covid-19 Immunization Program, which is on track to reach as many residents as possible as rapidly as possible.
“In addition, the government has launched and implemented a number of stimulus measures to help businesses and the rakyat in general. To address concerns such as unemployment, revenue loss, and the business environment, incentives and programs are developed.
“Digitalisation and technology adoption will continue to receive a lot of attention as strategies for accelerating economic recovery. With these coordinated measures in place, there is a sense of expectation that 2021 will be a watershed moment for both holistic health and economic recovery,” he said.
According to the minister, the Covid-19 pandemic has generated an unprecedented health and economic disaster, hurting people’s lives and livelihoods, culminating in a 5.5 percent drop in productivity growth last year as a result of the jarring interruptions.
“We’ve worked hard to overcome the challenges by creating possibilities that have transformed the course of our life for the better,” he said.
According to Mohamed Azmin, Bank Negara Malaysia (BNM) forecasted that Malaysia’s economy will develop at a rate of 6 percent to 7.5 percent in 2021 in its first-quarter performance report published in May 2021.
According to him, this indicates a comeback in labor and capital productivity, which is supported by a broad-based economic recovery across most sectors.
“While brave but necessary measures to flatten the curve of infections were implemented in 2020, the government, armed with valuable virological data, implemented more cautious measures in 2021 to prevent the virus from spreading exponentially, pivoted on the overarching goal to protect the lives of the rakyat while simultaneously ensuring the country’s economic growth,” he added.
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According to Azmin, government policies must be more flexible to accommodate quick changes. Continue reading
