Labour Policies and Institutions in the Eleventh Malaysia Plan: Aiming High, Falling Short

This paper examines the progress and shortfalls in Malaysia’s labour markets and institutions, and the policies proposed in the Eleventh Malaysia Plan (11MP). While the economy has steadily grown, labour market institutions and policies distinctly lag behind the standards, productivity levels and regulatory efficacy of advanced economies. Commitments to promote productivity and wage growth, boost employment especially for women and young workers, enhance labour market information and improve foreign labour management are welcome. Nonetheless, the 11MP insufficiently confronts labour market structures that perpetuate insecure, indirect and transient employment and overwork, impeding overall productivity gains and prolonging dependency on low-skilled migrant labour. Higher goals and deeper shifts are needed not only to increase productivity and wages per hour as the driving purpose, but also to institute laws and policies overseeing fairness, equality, discrimination, worker representation, social protection and gainful part-time employment.