Low-skilled foreign workers create distortions to economy: BNM

Low-skilled foreign workers create distortions to economy: BNM

Foreign workers sewing clothes at Balqis TexTiles Sdn Bhd at Rawang, Selangor. NSTP photo by MOHD YUSNI ARIFFIN KUALA LUMPUR: Reliance on low-wage and low-cost production will weigh on Malaysia’s efforts to raise productivity and create higher-skilled and better-paying jobs.

Bank Negara Malaysia (BNM) said the country’s transition to a high-income economy requires a major shift from labour-intensive business models to those that are driven by productivity gains, technological edge and sophisticated technical know-how.

“The ease and availability of these low-skilled workers at a cheap cost create deep distortions that disincentive firms to transform,” BNM said in its 2017 Annual Report.The […]

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