Volatility in Malaysian Skilled Labour Market: Evaluating Manufacturing Sector

Abstract

Labour, capital, natural resources and entrepreneurship are the primary factors that contribute to and influence economic growth in a country. These components are all used to produce a country's Gross Domestic Product, or total output of goods and services. Without all four components, a country would have no business and industry to meet the wants and needs of its people; and by augmentation, minimal economic activity and growth. Malaysian Institute of Economic Research has highlighted skilled labour shortage as one of the main factors behind Malaysia’s slower economic growth forecast for 2011-2012 on account of ongoing structural weaknesses in Malaysia. Weaknesses in skilled labour market hinder economic growth and impede flow of Foreign Direct Investment to Malaysia; hence, it is crucial to transform Malaysia's labour profile from one of non-skilled and semi-skilled to a highly skilled and professional work force. This paper discusses the Malaysian Skilled Labour Market Digressions, highlights the factors that cause skilled labour market volatilities, and offers possible solutions to bridge the theory and practice gap in the manufacturing sector.

Key Words: Manufacturing Sector, Skilled Labour, Economic Growth, Gross Domestic Product, Foreign Direct Investment,