PUTRAJAYA: Labour reforms, including improving efficiency and productivity, is crucial not only in developing human capital but in addressing job mismatches, says the Prime Minister.
Tun Dr Mahathir Mohamad said adressing this was crucial as job mismatch contributed to graduate
underemployment, unemployment and slow wage growth, as well as over-dependence on foreign labour.
"All these have serious implications for the economy and for businesses.
"Do note that the government will be reviewing labour laws to improve the labour market, ensure greater transparency and further safeguard the welfare of workers, " he said in his keynote address at a roundtable discussion with International Business Chambers on Thursday (Aug 1).
Dr Mahathir said for Malaysia to remain the preferred choice for foreign investors, there was a need to provide a conducive environment to encourage the inflow of foreign capital and technology.
He added that it was also important to strengthen the competitiveness of Malaysia’s industries in the global market.
The Prime Minister pointed out that the Fourth Industrial Revolution (Industry 4.0), artificial intelligence (AI), innovation, automation, Internet of Things (IOT) and other technological advancement would impact all industries.
"We may also say with certainty that Industry 4.0 will change the kinds of jobs needed across all market sectors.
"It is important to note, however, that while change and disruption are the new normal, talent and their developmental needs continue to be vital, " he said.
Dr Mahathir stressed that much needed to be done to ensure that human capital possessed the right skills to value-add and were creative, empathetic and interactive in a technology-driven landscape.
It would also be essential, he added, that the public and private sectors worked closely together to drive the development of an Industry 4.0 ecosystem that would to fully optimise all sources of talent, be they local graduates, the Malaysian diaspora, skilled foreign talents or Malaysia's insufficiently leveraged pool of latent talent.