INTERVENTION : HLPF 2025 - SDG 8 (DECENT WORK AND ECONOMIC GROWTH)

MALAYSIA INTERVENTION STATEMENT

MINISTRY OF ECONOMY, MALAYSIA

Advancing Sustainable, Inclusive, Science and Evidence-Based Solutions for the 2030 Agenda for Sustainable Development and Its Sustainable Development Goals for Leaving No One Behind

SDG 8 (Decent Work and Economic Growth)

Mr. President,

Excellencies, Distinguished Delegates,

Ladies and Gentlemen,

1. Under the MADANI Economy framework, Malaysia aims to become one of the world’s top 30 economies by 2033, with a female labour force participation rate (FLFPR) of 60% and a labour income share of 45%. As of 2024, the FLFPR stands at 56.5%, while the labour income share was 33.1% in 2023.

2. In 2024, Malaysia’s economy grew strongly with real GDP increasing by 5.1%, up from 3.6% in 2023 and above the projected range of 4% to 5%. This growth was driven by strong domestic demand, higher investments and a rebound in exports. The positive momentum sets a confident outlook for 2025, despite possible challenges ahead.

3. The labour market showed positive progress in 2024, with the unemployment rate dropping to 3.2% and the labour force participation rate rising to 70.6%. However, challenges remain, including low wages, skills mismatches, limited value-added jobs, and high dependence on foreign workers.

4. The Progressive Wage Policy (PWP) is part of labour market reforms aimed at raising workers’ salaries in line with productivity growth. It supports existing wage initiatives like the Minimum Wage Order, Productivity-Linked Wage System (PLWS), and collective bargaining. The PWP is voluntary, incentive-based, and tied to productivity.

5. The PWP also supports broader strategies such as the New Industrial Master Plan 2030 and the National Energy Transition Roadmap, which focus on creating high-quality jobs in areas like the green economy, advanced technology, and digital services. These efforts aim to boost the economy by generating more high-skilled, high-income job opportunities.

6. In conclusion, by addressing labour market challenges, Malaysia is paving the way for a more inclusive and future-ready economy. These efforts will continue to play a key role in improving the socio-economic well-being of the people and supporting sustainable national growth.

Thank you.