Wage stagnation and productivity

Creating an economy in which employers compete for productive and skilled workers matched with high productivity growth would raise wages.

IN Malaysia, the trend towards wage stagnation or “slow and moderate” wage growth has caught the attention of policymakers, compelling them to find new ways to make work pay more and be more predictable.

There were explanations for these wage trends, mainly as the product of economic and industrial structures and policies, social forces as well as supply and demand-side mismatch and shift linked to the skill set, productivity and technological change, which has favoured the more skilled over the less skilled.