PRODUCTIVITY & COMPETITIVENESS FORUM

IN CONJUNCTION WITH THE

LAUNCHING OF PRODUCTIVITY REPORT 2015/2016

THEME: “CHALLENGING THE FRONTIER, EMPOWERING PEOPLE"

16 June 2016, 10.00am

DewanPerdana MITI, Menara MITI

Welcoming Remarks by:

YBHG. TAN SRI AZMAN HASHIM

CHAIRMAN

MALAYSIA PRODUCTIVITY CORPORATION

Bismillahirrahmannirahim

The HonourableDato’ Sri Mustapa Mohamed

Ministry of International Trade and Industry

MPC Board of Directors,

Dato’ MohdRazali Hussain

Director General of MPC,

Distinguished Guests,

Ladies & Gentlemen

Assalamualaikum and a very good morning.

1.On behalf of MPC, I would like to thank our special guest, TheHonourableDato’ Sri Mustapa Mohamed, Ministry of International Trade and Industry, for his presence this morning, to launch theProductivity Report 2015/2016.

2.I would like to welcome representatives from industry associations, chambers of commerce and government agencies who are with us here. I would also like to take this opportunity to thank our MPC Competitiveness Partners who have assisted MPC in enhancing the country’s productivity, competitiveness, and innovation.

Ladies and Gentlemen,

3.The Productivity Report, anannual publication,reviews the country’s economic performance in terms of productivity, quality, competitiveness and innovation. It analyses and benchmarks the country’s productivity at the sectoral, national and international levels and provides recommendations for improvements. The Report,in its 23rdedition, maintains the theme “Challenging the Frontier, Empowering People”. Malaysia’s aspiration to be an advanced economy relies heavily on highly–skilled and well-trained human capital motivated towards higher-value and knowledge-based activities. Malaysians need to inculcate a more competitive and productive mindset at all levels of society to increase the country’s capacity for innovation and productivity.

4.In this regard, MPC complements one of the six game changers of the 11th Malaysia Plan; that is unlocking the potential of productivity. The game changers, once successfully applied, will accelerate Malaysia’s development and fundamentally change the trajectory of the country’s sustainable growth.

5.Malaysia’s approach to productivity is targeted to industry players and individual enterprises.Champions are identified to role-model change and ensure buy-in across stakeholders. The sole aim of these productivity champions would be to identify and create opportunities for boosting productivity within their respective industries. These Productivity Champions are change agents within companies who will then leverage their knowledge and know-how to implement productivity as well as business innovation tools and initiatives at the enterprise level.

6.In addition, existing trade bodies and industry associations will be recognized as productivity centres to provide a bigger impact in boosting productivity. These centres should be able to contribute valuable and more meaningful input to the enterprises, industries and influence policy-making in a much broader sense. Over time, these activities will give the Government more insight into the needs of each industry and allow it to formulate more effective policies to boost productivity growth.

Ladies and Gentlemen,

7.MPC continues to support the Government Transformation Program (GTP) agenda with pursuing Good Regulatory Practice (GRP). Under the Modernising Business Licensing initiative, up to date a total of 2,659 licences have been reviewed, re-engineered and reduced to 1,915 composite licences involving 13 states with an estimated compliance cost savings of RM1.7 billion per annum.

8.At the enterprise level, MPC facilitates local businesses with programmes designed to tap enterprise optimal capabilities, generating a cost savings of about RM200 million per annum from the Team Excellence projects in 2015 as well as RM2.75 million per annum from the LEAN projects. MPC’s latest offering is the Productivity Gain Measurement (PGM), a tool for assessing enterprise productivity performance before and after intervention. The use of both quantitative and qualitative productivity data and information will provide a measurement system that will enables enterprises to sustain its competitiveness and further enhance their productivity improvement programs.

9.Pushing on for more non-technological innovations, the enterprises need to be more receptive and creative in providing Service Excellence, which is beyond meeting customer’s satisfaction. Service Excellence mindset requires enterprises to fulfil customer’s ideal needs and customisation. This is only possible through measuring their customer satisfaction to assist in sustaining longer-term productivity.

Ladies and Gentlemen,

10.MPC has always beenengaging the public and private sectors to discuss on common issues and challenges concerning productivity and competitiveness at national, industry and enterprise levels. I am informed that the Productivity and Competitiveness Forum 2016 held thismorning had 250 participants. The Forum is forward-looking and practical in its focus, giving industry leaders opportunities to share and exchange views on the strategies needed formeaningful productivity collaborations.

11.In this regard, I would like to extend my appreciation to the Forum moderator and panelists representing the academia, public and private institutions. They are:

  • EncikMohdNazli Ahmad Mahyadin, Senior General Manager, Construction Industry Development Board (CIDB) Malaysia;
  • PuanNurlinDato’ Seri MohdSalleh, Principal Boston Consulting Group(BCG) Kuala Lumpur; and
  • EncikAzman Shah Mohamed Noor, Head of Operational Excellence, Group Sustainability & Quality Management, Sime Darby Berhad.
  • Moderator: YBhg.Dato’ Muhamad Noor Yacob, Chairman, Malaysia Automotive Institute (MAI).

Ladies and Gentlemen,

12.On that note, it is now my pleasure to invite the Honourable Minister of International Trade and Industry, Yang BerhormatDato’ Sri Mustapa Mohamed, to deliver his speech and subsequently to launch the Productivity Report 2015/2016.

Thank you.

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