Government pushing AI, R&D to boost productivity
Malaysia's productivity saw "moderate" growth in 2023, with the government pushing for the adoption of AI and enhancement of research and development (R&D) processes in a bid to achieve strong productivity growth.
The productivity level per employee went up to RM96,692 in 2023, slightly up from the RM895,858 in 2022, according to Malaysia's Productivity Report 2024.
"The country's productivity growth was moderate but still positive, at 0.9% last year," the report read.
Source: Productivity Report 2024
Investment, Trade, and Industry (MITI) Minister Tengku Datuk Seri Zafrul Abdul Aziz said adopting AI will help Malaysia to greatly improve its productivity, The Sun reported.
"AI's potential to simplify complex and mundane tasks boosts productivity and opens doors to creativity and strategic thinking," he said in a speech read by MITI secretary-general Datu Hairil Yahri Yaacob at the launch of the Productivity 2024 report.
"A study on generative AI on skilled workers indicated that AI improved performance by around 40%."
The minister added that enhancing R&D will also increase economic complexity.
"In R&D, process innovation is equally as important as product innovation and critical to boosting productivity," he said in the speech.
In Malaysia, over eight in 10 knowledge workers are now using AI, according to the 2024 Work Trend Index. Its widespread utilisation comes following warnings from former Human Resources Minister V. Sivakumar over the need to retrain 50% of Malaysia's workforce to prevent significant labour disruption.
Productivity report 2024
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.
