A Look at Malaysia's Current State of Labour Market
As the world enters the age of automation, countries are facing a problem of an aging workforce. The Malaysian Labour Market has gone downhill fast in just three decades, with an ageing workforce. Malaysia’s workforce consists of the older generation and fewer members of the younger generation. The number of people in working age has dropped significantly in recent years, which has led to a manpower shortage problem in Malaysia.
This shortage is partly due to Malaysia’s increasing economy where more people are looking for better jobs than what is offered by Malaysia’s low-skilled jobs, which includes agriculture and manufacturing industry. With better job prospects abroad, many Malaysians are leaving their home country in search for better life opportunities abroad.
What is the Cause of the Malaysian Talent Shortage Problem?
In Malaysia, the workforce shortage problem has been a concern for many years now. The decline in available labour in the labour market is one of the main causes of this problem. There are a few reasons behind this declining trend which include a changing economic structure and a change in demographic structure. For instance, the rapid industrial development triggered a major shift in its demographic structure with more people working in service-oriented sectors and fewer people working in agriculture-related sectors.
The Malaysian Government has tried to combat this problem with various initiatives such as providing skills training and re-training programmes, but these programmes haven’t been effective enough to solve the problem. The government should work more closely with companies to provide them with more incentives if they want to attract talents from abroad since it seems that Malaysians are not interested in working in these companies.
Why Is the Lack of Quality Labour Such a Big Issue for Businesses in Malaysia?
Malaysia has a major problem with a lack of quality labour. The country is facing a shortage of workers, which is causing the labour market to see an increase in wages and skills shortages. This issue hurts businesses as they have to pay more for labour and some companies cannot find skilled workers at all. The government needs to work harder to solve this issue by increasing the number of skilled workers or by implementing an effective workforce planning system.
The Importance of Ensuring High-Quality Foreign Labour
The idea of outsourcing work to people in other countries is nothing new. And with the rising cost of labour, it's becoming more and more popular. It's not just companies that are benefiting either - what about the workers who are getting hired?
With the rising cost of labour in Malaysia, many companies are looking for alternatives to solve manpower shortage. With foreign labour recruitment services from manpower supply agency in Malaysia, businesses hope that it will be an alternative solution to their manpower shortage issues.
Resolving the Issue Before it Gets Worse
The government has tried to address the issue with many programmes, but they have not been very successful. The government should focus on methods that are more effective in attracting Malaysians to work instead of trying to force them into the workforce. This might be putting more focus on creating jobs or improving Malaysia's competitiveness for foreign investment.
Besides, there is an urgent need to opening up opportunities for education and training to equip the workforce with skillsets that are needed. And finally, investing in R&D to make Malaysia an innovation-driven economy would also help address the problem of workforce shortage.
