Technology adoption and business scaling can support higher wages, says minister
Manufacturers should adopt technology more widely rather than depend on cheap labour, Economy Minister Akmal Nasrullah Mohd Nasir said.
Economy Minister Akmal Nasrullah Mohd Nasir said companies can improve productivity through technology adoption and business scaling, giving them greater scope to pass growth gains to employees through higher wages.
Speaking to Bernama after an appearance on Bernama TV’s Ruang Bicara, he said productivity efforts should address employers’ capabilities as well as those of their workers. Wage increases need to be accompanied by productivity improvements at both levels, he said.
For MSMEs, Akmal Nasrullah identified technology adoption and financing for business scaling as ways to build capabilities. More effective scaling could enable these businesses to distribute some of their growth proceeds to workers, he said.
He urged wider use of technology in manufacturing instead of dependence on cheap labour, including foreign workers. He linked this approach to the 13th Malaysia Plan’s target to lower reliance on foreign workers to 10 per cent from 15 per cent by the plan’s end.
Akmal Nasrullah also said energy-efficient equipment could lower operating costs. Government matching grants are available for energy efficiency audits, he noted, while the relevant ministries oversee details of specific funds supporting technology adoption and productivity improvements.
