News & Articles Improving productivity key to strong growth
Improving productivity key to strong growth
2 Nov 2015
LABUAN: THE key to Malaysia sustaining its strong economic growth lies in the improvement of its productivity level, said a World Bank senior economist.
Norman Loayza, who is the lead economist of the bank’s development research group, said pushing for innovation alone was not enough and that only higher productivity would be effective.
“Malaysia has a lot to go for in an economy that will be reaching maturity,” he said at the Labuan International Business and Financial Centre’s (IBFC) 25th anniversary conference, here, over the weekend.
For instance, he said while Malaysia was as strong as Singapore in terms of innovation, it was not as well-placed when it came to technology readiness. Efficiency was also another area where there had been uneven progress, noted Loayza.
However, he praised Malaysia for its quality physical infrastructure. Finance was an area in which Malaysia had stayed the course and made substantial progress, he said, adding that the country was a leader in macroprudential measures and there was ready access to credit and finance.
“It does its preparation in good times through prudent macroeconomic and financial policies, targeted social insurance and protection and a flexible private sector (that reacts quickly to shocks).”
To improve its productivity and efficiency, basic education levels had to be improved and more women encouraged to enter the labour force, Loayza added.
The recently-concluded Trans Pacific Partnership talks offered a good opportunity for Malaysians, he said, as one study found the economy would see a 20 per cent growth with the ratification of the agreement.
Norman Loayza, who is the lead economist of the bank’s development research group, said pushing for innovation alone was not enough and that only higher productivity would be effective.
“Malaysia has a lot to go for in an economy that will be reaching maturity,” he said at the Labuan International Business and Financial Centre’s (IBFC) 25th anniversary conference, here, over the weekend.
For instance, he said while Malaysia was as strong as Singapore in terms of innovation, it was not as well-placed when it came to technology readiness. Efficiency was also another area where there had been uneven progress, noted Loayza.
However, he praised Malaysia for its quality physical infrastructure. Finance was an area in which Malaysia had stayed the course and made substantial progress, he said, adding that the country was a leader in macroprudential measures and there was ready access to credit and finance.
“It does its preparation in good times through prudent macroeconomic and financial policies, targeted social insurance and protection and a flexible private sector (that reacts quickly to shocks).”
To improve its productivity and efficiency, basic education levels had to be improved and more women encouraged to enter the labour force, Loayza added.
The recently-concluded Trans Pacific Partnership talks offered a good opportunity for Malaysians, he said, as one study found the economy would see a 20 per cent growth with the ratification of the agreement.
Source: nst.com.my