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Borneo Post
9 hours ago
- Business
- Borneo Post
M'sian manufacturing body urges govt support for automation, job redesign to tackle labour shortage
Soh says while manufacturers are investing heavily in automation and digitalisation, these transitions require capital, time and skilled talents, which remain in short supply. KUCHING (June 21): The Federation of Malaysian Manufacturing (FMM) has suggested the government introduce targeted incentives for automation and support for job redesign to maintain manufacturing as a competitive and inclusive sector. According to FMM president Tan Sri Soh Thian Lai, while manufacturers are investing heavily in automation and digitalisation, these transitions require capital, time and skilled talents, which remain in short supply. He said the latest Department of Statistics Malaysia (DoSM) data had confirmed that manufacturing wages in Malaysia were rising steadily and surpassing national averages. 'Employers in the sector remain committed to offering fair and competitive compensation, but urgent support is needed to address persistent labour shortage. 'The reliance on foreign workers stems from a shortage of willing and skilled local workers, not from any strategy to suppress wages. 'A balanced, data-driven and skills-based human capital strategy is crucial for us to remain competitive and inclusive,' he said in a statement, issued in response to DoSM's Monthly Manufacturing Statistics, which indicated that the average salary in the manufacturing sector rose to RM3,460 per month in April this year, reflecting a 1.2 per cent year-on-year increase. In comparison, the average monthly salary across all formal sectors stood at RM3,441 in the fourth quarter of last year, highlighting that manufacturing wages continued to outperform the national average, Soh pointed out. Additionally, he said total wages paid in the manufacturing sector climbed to RM8.31 billion in April 2025, marking a 2.4 per cent year-on-year increase. He added that the median wage across all formal sectors was recorded at RM3,045, while manufacturing median wages ranged between RM2,764 and RM3,052, well above the national minimum wage of RM1,700. 'FMM acknowledges that the data clearly demonstrates manufacturing wages in Malaysia are not only competitive, but are continuing to rise steadily. This affirms that employers in the sector are offering fair compensation, and it also counters the claim of the workers being underpaid. 'Despite competitive wage levels, the manufacturing sector continues to grapple with acute labour shortages, especially in 3D (dirty, dangerous, and difficult) job categories.' He emphasised again that the local workers were not being displaced by cheaper foreign labour, adding that hiring foreign workers involved considerable costs and regulatory compliance. 'Furthermore, even when wages offered exceed the national minimum wage, many of these roles remain unattractive to the local job-seekers.' As such, he recommended the government to expand technical and vocational education and training (TVET) programmes and industry-led training initiatives to the manufacturing sector and strengthen them, as well as to formalise informal workers and improve the enforcement of wage-related regulations. 'The government should also establish tripartite labour planning councils for collaborative workforce strategies. 'We reiterate our support for a voluntary, productivity-linked Progressive Wage Policy (PWP) that encourages wage growth aligned with skills enhancement and measurable performance, rather than arbitrary increases. 'A business-friendly and voluntary PWP, grounded in clear performance metrics, would gain manufacturers' support and ensure that wage increases are sustainable and linked to worker capability,' added Soh.


New Straits Times
15-05-2025
- Business
- New Straits Times
Malaysia's labour demand continues to rise by 1.4pct in Q1 2025
PUTRAJAYA: Malaysia's labour demand rose 1.4 percent in the first quarter (Q1) of 2025, reaching 9.06 million jobs compared to 8.94 million in the same period last year, according to the Employment Statistics released today by the Department of Statistics Malaysia (DOSM). Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth is in line with Malaysia's improving economic performance, projected to continue supported by resilient domestic demand. Of the total jobs recorded, 97.9 percent were filled, while the remaining 2.1 percent were vacant. He said the number of filled jobs rose 1.4 percent year-on-year to 8.87 million in Q1 2025, compared to 8.75 million in the same quarter last year. All sectors contributed to the growth, with the services sector leading at 1.8 percent, followed by manufacturing (1.5 percent) and construction (0.5 percent). In terms of economic activity, the services sector accounted for the largest share of filled jobs at 52.8 percent or 4.69 million, followed by manufacturing at 26.9 percent (2.38 million), and construction at 14.1 percent (1.25 million), he added. Commenting on the distribution by skills category, Mohd Uzir said the majority were in the semi-skilled category, accounting for 5.55 million or 62.5 percent of total filled jobs. This was followed by 2.23 million jobs in the skilled category and 1.09 million in the low-skilled category. On current labour demand, he noted that job vacancies rose 1.2 percent year-on-year to 194,100 in Q1 2025, up from 191,900 in the same quarter last year. He said the manufacturing sector remained the main contributor to job vacancies, making up 57.3 percent of total vacancies, with the electrical, electronic and optical products sub-sector recording 33,900 vacancies, followed by 20,200 vacancies in the petroleum, chemical, rubber and plastic products sub-sector. The agriculture and construction sectors reported 31,800 and 25,400 vacancies, respectively. By skills category, semi-skilled roles accounted for the largest share of vacancies at 56.3 percent (109,200), while skilled and low-skilled roles made up 24.4 percent (47,400) and 19.3 percent (37,500), respectively. On job creation, Mohd Uzir reported that a total of 33,200 new jobs were created in Q1 2025, an increase of 3.4 percent from 32,100 jobs recorded in the same quarter last year. "The rise in jobs created, especially in skilled and semi-skilled categories, may encourage individuals to pursue higher education and specialised training, building a workforce with expertise and innovation," he noted. He stated that Malaysia's labour demand is set for continued growth, reflecting the nation's commitment to strengthening its economic foundation and achieving sustainable development. The manufacturing sector remained a key driver, with the Monthly Manufacturing Statistics reporting a 1.1 percent year-on-year increase in employment within the sector during the quarter, he explained. "This trend aligns with the objectives of the New Industrial Master Plan 2030 (NIMP 2030), which aims to drive employment growth and enhance workforce capabilities within the manufacturing sector," he said.


The Star
15-05-2025
- Business
- The Star
Labour demand continues rising, growing 1.4% in Q12025
PUTRAJAYA: Malaysia's labour demand rose 1.4% in the first quarter of 2025, reaching 9.06 million jobs compared to 8.94 million in the same period last year, according to the Employment Statistics released on Thursday (May 15) by the Statistics Department (DOSM). Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth is in line with Malaysia's improving economic performance, projected to continue, supported by resilient domestic demand. Of the total jobs recorded, 97.9% were filled, while the remaining 2.1% were vacant. He said the number of filled jobs rose 1.4% year-on-year to 8.87 million in Q1 2025, compared to 8.75 million in the same quarter last year. All sectors contributed to the growth, with the services sector leading at 1.8%, followed by manufacturing (1.5%) and construction (0.5%). In terms of economic activity, the services sector accounted for the largest share of filled jobs at 52.8% or 4.69 million, followed by manufacturing at 26.9% (2.38 million), and construction at 14.1% (1.25 million), he added. Commenting on the distribution by skills category, Mohd Uzir said the majority were in the semi-skilled category, accounting for 5.55 million or 62.5% of total filled jobs. This was followed by 2.23 million jobs in the skilled category and 1.09 million in the low-skilled category. On current labour demand, he noted that job vacancies rose 1.2% year-on-year to 194,100 in Q1 2025, up from 191,900 in the same quarter last year. He said the manufacturing sector remained the main contributor to job vacancies, making up 57.3% of total vacancies, with the electrical, electronic and optical products sub-sector recording 33,900 vacancies, followed by 20,200 vacancies in the petroleum, chemical, rubber and plastic products sub-sector. The agriculture and construction sectors reported 31,800 and 25,400 vacancies, respectively. By skills category, semi-skilled roles accounted for the largest share of vacancies at 56.3% (109,200), while skilled and low-skilled roles made up 24.4% (47,400) and 19.3% (37,500), respectively. On job creation, Mohd Uzir reported that a total of 33,200 new jobs were created in Q1 2025, an increase of 3.4% from 32,100 jobs recorded in the same quarter last year. "The rise in jobs created, especially in skilled and semi-skilled categories, may encourage individuals to pursue higher education and specialised training, building a workforce with expertise and innovation," he noted. He stated that Malaysia's labour demand is set for continued growth, reflecting the nation's commitment to strengthening its economic foundation and achieving sustainable development. The manufacturing sector remained a key driver, with the Monthly Manufacturing Statistics reporting a 1.1% year-on-year increase in employment within the sector during the quarter, he explained. "This trend aligns with the objectives of the New Industrial Master Plan 2030 (NIMP 2030), which aims to drive employment growth and enhance workforce capabilities within the manufacturing sector," he said. - Bernama


The Star
08-05-2025
- Business
- The Star
Manufacturing sector sales value 3.7% y-o-y at RM164.3bil in March 2025
KUALA LUMPUR: Malaysia's manufacturing sector sales value rose 3.7 per cent year-on-year (y-o-y) at RM164.3 billion in March 2025 as compared to a 4.7 per cent y-o-y growth at RM153.1 billion in February 2025, according to the Department of Statistics Malaysia (DOSM). Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth in sales value in March 2025 was mainly driven by the food, beverages and tobacco sub-sector, which recorded a strong growth of 11.8 per cent y-o-y in March 2025 (February 2025: 14.5 per cent). "This was followed by the electrical and electronics products and non-metallic mineral products, basic metal and fabricated metal products sub-sectors at 7.4 per cent (February 2025: 7.8 per cent) and 4.0 per cent (February 2025: 4.4 per cent), respectively,' he said in the department's Monthly Manufacturing Statistics for March 2025 released today. He said the sales value of export-oriented industries, representing 70.9 per cent of total sales, expanded by 4.6 per cent y-o-y in March 2025 (February 2025: 5.8 per cent). "Furthermore, the manufacture of computer, electronics and optical products also rose by 8.0 per cent (February 2025: 7.8 per cent), while the manufacture of rubber products grew by 7.5 per cent (February 2025: 8.4 per cent),' he added. Similarly, Mohd Uzir said the domestic-oriented industries grew by 1.8 per cent y-o-y in March 2025, after registering a y-o-y increase of 2.3 per cent in February 2025. On a month-on-month basis, he said both export and domestic-oriented industries rebounded by 8.6 per cent and 4.2 per cent, respectively. Commenting on the number of employees, Mohd Uzir said there are 2.39 million persons engaged in the manufacturing sector during March 2025, a 1.1 per cent y-o-y rise (February 2025: 1.2 per cent). On a month-on-month basis, the number of employees in this sector decreased by 0.2 per cent. He said the salaries and wages paid in the manufacturing sector also posted a y-o-y increase of 1.8 per cent (February 2025: 2.0 per cent), amounting to RM8.4 billion in March 2025, while a month-on-month comparison showed a 0.4 per cent drop. "Subsequently, the sales value per employee went up to RM68,805 (2.6 per cent), while the average salaries & wages per employee was RM3,508, rose by 0.7 per cent year-on-year,' he said. For the manufacturing sector's performance in the first quarter of 2025, the sales value was registered at RM475.6 billion, a 4.0 per cent rise, compared to the same period of 2024 (4Q 2024: 4.4 per cent). The number of employees was up by 1.1 per cent to 2.39 million persons, while salaries and wages increased by 1.8 per cent to RM25.3 billion, with the sales value per employee standing at RM199,108, a 2.9 per cent growth. - Bernama