Workers must power new economy, says PM

Prime Minister Datuk Seri Najib Razak wants workers to power a new economic model that will take the country to high-income status.

He said details of the economic model would be drawn up by an economic council to be set up for the purpose.

Najib said council members would comprise experts from Malaysia and abroad and provide input on how the nation could improve its economic position from the current high middle-income level to high-income level.

Najib was speaking after delivering his Workers Day message at the 2009 national Workers Day gathering in Bukit Jalil.

The prime minister said the increase in workers' output should not be merely through increased productivity but also via innovation and creativity.

"If we stress this, then we will be able to raise the productivity level not only incrementally but also by a quantum leap. And when we achieve this, naturally, workers can be paid much more."

Najib said the private sector, government-linked companies and even the government must look into raising workers' skills through innovation and creativity.

"This is the model I am stressing - a new economic model beneficial to workers that can attain for the nation a higher level of competitiveness.

We will not allow the country to remain as it is but find ways to achieve a quantum leap so that we can be in the high-income bracket."

Touching on the retrenchment fund proposed by the Malaysian Trades Union Congress, Najib said it was being studied as a long-term measure to assist jobless workers during hard times.

He said the Human Resources Ministry was in the midst of discussions involving the setting up of the fund.

The ministry's proposal would be brought up to the cabinet, he said.

Najib said the government would be looking at enhancing the Employees Provident Fund's retirement withdrawal scheme.

He said the present disbursement depleted the savings too soon, or between three and 10 years after retirement, when life expectancy was now in the 70s.

He urged workers and employers to maintain industrial harmony and continue as the backbone of the country's progress and development.

He said the three-way relationship between employers, workers and the government must be based on mutual help.

"Employers must understand the aspirations of the workers, while the workers should contribute with dedication, and the government discharge its responsibilities through positive policies to stimulate the economy."

Najib called on employers to provide better working conditions and employment terms to attract local workers.

"I hope employers do not take the easy way out by offering job opportunities to foreigners because of their lower pay. Give the locals a chance, too."

He hoped the unemployment rate would be kept at a minimum although it was likely to rise from 3.1 per cent last year to four per cent this year.