Productivity is the key to high income economy

Increase in productivity necessary for high income status, says Mukhriz

Wednesday March 7, 2012 MYT 3:34:31 PM

PETALING JAYA: To achieve the status of a high income nation under Vision 2020, Malaysia needs to increase productivity, said Deputy Minister of International Trade and Industry, Datuk Mukhriz Tun Mahathir.

“The minimum wage policy has become an ongoing debate, and the important thing is, the ability of the government to strike a balance between increasing the income of the people and ensuring higher productivity,” he said.

He was speaking to reporters after officiating the Malaysia Productivity Corporation’s (MPC) CreaNova 2012 here today.

Comparing the productivity in different sectors, Mukhriz said a lot more can be done to improve the agriculture sector.

MPC director-general Datuk Razali Hussain said the organisation has consistently organised programmes, such as CreaNova 2012, to increase productivity.

“From our statistics, the labour cost constitutes an average 30 per cent for a company, while the rest is for materials and energy.

“Companies must address this issue, and any increase in cost must be balanced out on productivity,” he added.

The one-day CreaNova 2012, themed, “The Power of Collaborative Innovation”, brings together a seminar on Material Flow Cost Accounting (MFCA), a photography contest and the launch of the Malaysian Innovators’ book, “Everyone Can Innovate”.

CreaNova 2012 also addresses the issue of material and energy costs.

The event today also witnessed the signing of a memorandum of agreement between the MPC and the Malaysian National News Agency (BERNAMA), on the dissemination of productivity and competitiveness information and publication.

This will be done through the news agency’s Library and Infolink Service (BLIS). – Bernama

Source: http://biz.thestar.com.my/news/story.asp?file=/2012/3/7/business/20120307143621&sec=business

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