Datuk Seri Tan Thian Poh, head of the Malaysian Textile Manufacturers Association (MTMA), recently urged domestic textile industry players to partner with Chinese manufacturers to digitize and automate manufacturing processes and systems to enhance productivity and income.
He said that the domestic textile sector had become stagnant, seen as labour-intensive, but it had now moved towards automation.
During a press conference at the China Textile City Overseas Mini Fair, Poh stated that Malaysia should use a productivity-linked system similar to the one used in China, in which manufacturers pay wages based on employee productivity.
A Malaysian publication reported him stating that there was a need to boost the country’s minimum wage, but the productivity level issue must be addressed since low productivity levels might damage competitiveness.
According to him, the most significant disadvantage for Malaysia is the availability of a workforce rather than the cost of employment. Foreign labour supply can only provide short- to medium-term answers, but it is not long-term viable for domestic players to rely on the government to continue supplying foreign labour. Malaysia should prioritize branding and commerce, particularly online selling, he says.
