Malaysia's Labor Productivity Increases by 3.7% in 2025
Malaysia's labor productivity per hour worked rose by 3.7% in 2025, with value added per hour at 44.5 ringgit. Labor productivity per employed person increased by 3.4%, reaching 102,672 ringgit. Strong performance was noted in manufacturing, services, and export-oriented industries, supported by digitalization and automation. The Department of Statistics Malaysia projects a positive outlook for 2026, emphasizing efficient workforce utilization and potential investments in technology and skills development.
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In 2025, Malaysia's labor productivity per hour worked increased by 3.7%, reaching 44.5 ringgit. Labor productivity per employed person rose by 3.4%, totaling 102,672 ringgit. All major economic sectors reported gains, attributed to improvements in manufacturing, services, and export-oriented industries, alongside ongoing digitalization and automation. The Department of Statistics Malaysia anticipates a favorable outlook for 2026, highlighting efficient workforce utilization and the importance of investments in technology and skills development to enhance competitiveness.
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