chairman1-211x300Resilient productivity growth is a key driver for our nation’s transformation journey towards a developed and high-income economy by year 2020. MPC as the productivity custodian has the principal role to lead both the public and private sectors on our national productivity agenda that facilitates national competitiveness in the global arena.

Malaysia continues with its strong competitiveness performance achieving top 20 most competitive economies in three international reports. In the World Competitiveness Yearbook (WCY) 2015, Malaysia is ranked 14th out of 61 (WCY 2014: 12th/60) economies, while in the Global Competitiveness Report (GCR) 2015-2016, Malaysia is positioned at 18th out of 140 (GCR 2014-2015: 20th/144) economies. Additionally, based on the new methodology used by the Doing Business (DB) Report 2016, Malaysia is placed 18th out of 189 (DB 2014: 20th/189) economies. Efforts to enhance competitiveness in our increasingly borderless business environment require participation from all parties. MPC as the nation’s lead agency in productivity and competitiveness works closely with ministries and agencies to uplift the nation’s competitiveness.

Focus is also given to competitiveness at state level to enable respective governments to identify strengths and opportunities for improvement and raise their performance. The State Competitiveness Report also serves as reference for stakeholders to develop strategy for future economic prosperity. The State Competitiveness Study uses the Global Competitiveness Index (GCI) methodology by the World Economic Forum (WEF). As part of the requirements of the methodology, MPC collaborates with higher learning institutions duly appointed as Competitiveness Partners (CP) to conduct the Competitiveness Opinion Survey (COS).

The Special Task Force on Service Delivery (PEMUDAH), established in 2007, was founded with the objective of bringing about closer collaboration between the public and private sectors, primarily to enhance public service delivery and to improve the business environment in Malaysia. PEMUDAH is the platform for synergistic collaborations via working groups, task forces and focus groups comprising stakeholders from the public and private sectors. These collaborations are intended to create a sense of urgency in the quest for a better Government service delivery, improving Malaysia’s competitiveness and ensuring that business is conducted more efficiently. Being in its 8th year, PEMUDAH, fully administered by MPC, remains relevant by benchmarking the practices of competitive nations to address challenges in enhancing Malaysia’s competitiveness. PEMUDAH is now not only tasked to address operational inefficiencies in service delivery, but is also assigned to review regulations to further reduce the burden of compliance by business community in Malaysia.

One of the core components used in the review of regulations is public consultation. MPC, in collaboration with ministries and agencies, have developed and published ‘Guideline on Public Consultation Procedures’ that requires the regulators to solicit feedback from stakeholders, interested parties and citizens in the policy-making process, thus displaying the Government’s commitment towards ensuring transparency and accountability.

Productivity still holds the key to a strong economic growth in the long term. A comprehensive database pertaining to industry performance and productivity is important to support and facilitate research activities. The research findings are converted into useful information as strategic input for the Regulatory Review and Enterprise Innovation teams at MPC to improve productivity dan competitiveness at organisational level. In an effort to produce high impact productivity and competitiveness research projects, especially in acquiring the latest statistical data on labour, MPC has forged strategic partnerships with relevant organisations, such as the Department of Statistics Malaysia (DOSM), the Institute for Labour Market Information and Analysis (ILMIA) and the Ministry of Human Resource (MOHR). These partnerships have enabled MPC to generate better data input and widened the coverage of the industry survey.

In terms of research output, 8 productivity and competitiveness research projects were completed in 2014 and disseminated to the industries by means of printed and electronic publications. Throughout the year, MPC has produced 21 printed publications with a distribution of 5,076 copies as well as 9 electronic publications.

The recognition programmes for Practitioner, Assessor and Consultant (PAC) and Quality Environment (QE) Specialist among industry players are aimed at designating productivity ambassadors or champions to promote and implement Business Excellence (BE) programmes in their respective organisations. The QE Management System Certification by MPC includes activities such as Quality Environment Practices (QE/5S), Innovative and Creative Circle (ICC) and Lean Management System. The participation of organisation in QE programme has proven to increase the organisation’s operational efficiency, reduce cost, improve teamwork spirit and also enhances the organisation’s competitiveness.

MPC also provides an avenue for organisations to share their best practices in the Lean Creanova Convention as well as the Team Excellence (TE) Convention at national and international levels. The impact from TE implementation projects has contributed to easier and more efficient work process, reduced wastages, eliminate non-value-added activities as well as improved productivity, quality and safety at work place. At the Annual Productivity and Innovation Conference & Exposition (APIC) 2015, a total cost savings of almost RM200 million from the ICC and QE/5S projects were recorded from the respective presenters by the participating companies.

MPC has collaborated closely with ministries and agencies as well as international organisations such as the Asia Pacific Economic Cooperation (APEC), the International Institute for Management Development (IMD), the Organisation for Economic Co-operation and Development (OECD), the World Bank and the Asian Productivity Organisation (APO). The local and international collaborations are strengthened to allow MPC personnel to further understand the methodology and tools used by the various bodies in addressing productivity and competitiveness challenges. The acquired inputs are deliberated and scrutinised to formulate the Nation’s productivity strategy and implementation.

It is high time that all of us either as industries or individuals to have a keen interest and to participate actively in productivity, innovation and competitiveness enhancement programmes organised by MPC. This is to ensure that a productive culture is inculcated within everyone. We at MPC hope that all Malaysians will join us and be committed in pursuit of enhancing our Nation’s productivity and competitiveness.

An organisation’s endeavour is very much dependent upon the involvement of all stakeholders. As such, I would like to put on record my deepest appreciation to MPC Board of Directors, Chairmen and Members of Consultative Panels, Taskforces, MPC management team and staff for their dedication and support. The continuous guidance from the Ministry of International Trade and Industry is highly appreciated particularly in ensuring the smooth implementation and success of our MPC programmes. I would also like to thank all ministries, agencies as well as local and international partners on the various collaborations undertaken and may these strategic relationships continue to bear fruit in the coming years.


Tan Sri Azman Hashim
Malaysia Productivity Corporation

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