Malaysia's Productivity Sees Moderate Growth in 2023

Malaysia's productivity recorded moderate growth in 2023, with efforts focused on adopting artificial intelligence (AI) and enhancing research and development (R&D) capabilities. The productivity per employee increased to RM96,692, driven by initiatives to streamline processes and foster innovation across industries.MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz highlighted the transformative potential of AI in boosting productivity and efficiency in the workforce. AI adoption among knowledge workers has been substantial, contributing to improvements in performance and operational effectiveness.

Malaysia's Productivity Report echoed similar sentiments over adopting tech and improving R&D processes."Adopting technology an implementing modern management practices are pivotal for boosting productivity across industries," the report read. "This enhances workplace efficiency and effectiveness, encourages innovation, and optimises resource utilisation."

The need to boost productivity comes as Malaysia aims for a strong productivity growth of 3.8% annually in 2024 and 2025, according to the report.

"This objective demonstrates the government's commitment to enhancing productivity and efficiency across the economic domain, guaranteeing that Malaysia is making progress towards achieving the goals of the MADANI Economy framework," it read.