Kuala Lumpur:The adoption of technology and business scaling is essential for increasing company productivity and enabling wage growth, according to Economy Minister Akmal Nasrullah Mohd Nasir.

According to BERNAMA News Agency, Akmal emphasized that enhancing productivity to support wage growth requires the involvement of both employees and employers. He highlighted the need for wage increases to be balanced with productivity improvements not only among workers but also at the employer level.

He further explained that adopting technology and scaling up businesses are crucial strategies for strengthening the capabilities of micro, small, and medium enterprises (MSMEs). As these enterprises grow more effectively, they will be able to share the benefits of growth with their workforce.

The minister identified the manufacturing sector as a key target for productivity improvements, suggesting a shift towards comprehensive technology adoption rather than reliance on low-cost labor, including foreign workers. This initiative aligns with the 13th Malaysia Plan, which aims to reduce the dependency on foreign workers from 15% to 10% by the end of the plan period.

Akmal also mentioned that using energy-efficient machinery or equipment can help reduce operating costs for companies. He pointed out that government matching grants are available for energy efficiency audits, while specific funds for technology adoption and productivity enhancement are managed by the relevant ministries.