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MPC organizes study mission on Productivity-linked Wage Systems

31 Aug 2023

The Malaysia Productivity Corporation (MPC), in association with the APO Secretariat, organized an individual-country observational study mission (IOSM) on Productivity-linked Wage Systems (PLWS) in Kuala Lumpur, 2–4 August. Six participants from the Bangladesh Ministry of Industries and National Productivity Organisation joined the mission. The face-to-face IOSM provided an overview of Malaysia’s productivity initiatives and the evolution of its PLWS to promote the adoption of best practices and new models of PLWS in Bangladesh.

PLWS, known for its adaptability and competitiveness, apportion profits based on the performance and productivity of both employers and employees, contributing to shared prosperity and competitiveness. Initiated by the Malaysian government in 1996, PLWS has bolstered national labor productivity, even prompting highly skilled Malaysians to return from abroad and contribute to their homeland. The experience of Malaysia is a useful example for other APO members considering the establishment or innovation of PLWS.

Guided by two local resource persons, the study mission provided insights on the concept of PLWS and the e-Shared Prosperity Organization (eSPO) as well as case studies of PLWS implementation. Site visits included the KPJ Rawang Specialist Hospital and SGS Malaysia to observe and discuss the best practices of eSPO. The design of the study mission was aligned with the SDG targets outlined in the National Productivity Master Plan for 2021–2030 of Bangladesh. Establishing robust PLWS could ensure both business productivity and employee well-being.

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