We celebrate this year’s Labour Day for the first time under a new government that is sympathetic to workers’ rights. A flurry of reforms carried out by this Government, from increasing the minimum monthly wage to RM1,100 throughout Malaysia to improving workers welfare, will help to raise the quality of our growth while making it more inclusive.
The Government is cognisant that Malaysian workers only earned 35% of GDP in 2017. This is well below the share recorded in developed economies like Singapore and the United States where the ratios were higher at 41% and 43% respectively. That is the level Malaysia should aspire to as we join the ranks of developed economies.
The Government is formulating market-based solutions to raise the income of Malaysian graduates, while addressing unemployment problem especially among our youth and unemployed graduates. Job creation for Malaysians is needed when the country is experiencing a structural change arising from competition of low-cost country like Vietnam, digital disruption caused by the transition into the digital economy and Industry 4.0 as as well as the advent of new technology that have the potential of destroying low-productivity jobs. To shield existing workers from job losses caused by digital disruption, new jobs must be created.
Monthly income supplements to encourage employers to employ workers as lower cost and encourage workers to work for a more reasonable pay is one of the options that is being studied. Further, we have to expose our workers to the latest technology, be it automation, artificial intelligence and robotics to enhance our productivity, competitiveness and wages.
The Government is encouraging investment into new sectors directly relevant to the Industry 4.0 that will create high-quality jobs for all Malaysians. Total approved foreign direct investment rose 48% to RM80.5 billion in 2018 from RM54.4 billion last year. These investments are estimated to create approximately 50,000 new jobs beginning this year as the projects are realized on the ground.
But we do not want just any job. We need jobs that uplift us instead of trapping us in a vicious cycle that threatens to leave us with little security during an emergency. We need jobs that supports shared prosperity.
To succeed, we must unite together as one nation against those irresponsible elements who divide us by using sentiments of racial and religious hatred and fears. Only by moving forward together as one people, including both employers and employees, celebrating diversity, respecting our differences, encouraging women to work and upholding workers’ rights can we enjoy shared prosperity.