Enhancing training programmes key to achieving 80 per cent local workforce - Economists

SHAH ALAM - Economists predict that manufacturers will achieve the government's target of having 80 per cent local workforce by the end of 2024 through increased training.

Originally set for Dec 31, 2022, the deadline for compliance with the 80:20 local-foreign workforce rule in the manufacturing sector was extended by the government to the end of 2024.

Senior Research Fellow at the Social Wellbeing Research Centre (SWRC) of Universiti Malaya, Dr Zulkiply Omar, emphasised the importance of providing proper training to local graduates to upgrade their skills.

"It is crucial for them to receive the necessary training to enhance their skills.

"The long-term efforts should focus on promoting higher-level technological absorption through improvements in research and development (R&D). Manufacturers need to advance in technological absorption," he explained to Sinar Daily.

Zulkiply also highlighted the need to reduce dependency on foreign labor, particularly for low-skilled workers, and noted that workers anticipate increased productivity and wage growth.

Echoing Zulkiply's perspective, Universiti Utara Malaysia economist Dr K Kuperan Viswanathan, stressed that manufacturers must enhance the quality and quantity of training programs.

"To achieve an 80 per cent local workforce by the end of 2024, manufacturers will need to increase wages.

"The government should also control the influx of low-wage foreign workers into Malaysia," Kuperan said.