LABOUR COST IN MALAYSIA 2016 Final Report - National Labour Cost Survey 2016 (F | Page 21

2.4
Moving Forward: Recommendations
It is proposed that this labour cost survey be conducted on an annual basis. Annual data can be
used to develop a comprehensive understanding of the evolution of labour cost in Malaysia, as
well as to enable a more robust assessment of employment and wage policies. In addition, the
data could be used to assess the impact from the changes in labour cost at both the national and
industry levels.
A crucial component for a successful implementation of this survey on an annual basis is the
enforcement of the Employment Information Act 1953 to ensure full participation by the
establishments. Similar national surveys such as the National Employment Returns, National
Wage Index and this Labour Cost Survey could also be integrated in the future to ensure a more
efficient data collection process and to reduce survey fatigue among respondents.
In terms of survey scope, subsequent labour cost surveys should incorporate public sector data
as well to enable a holistic evaluation of both public and private sector labour cost.
Moving forward, analysis of this labour cost survey data should include comparison with other
domestic datasets such as the Labour Force Survey. Data from the Environmental Scan of
selected industries can also be leveraged to enhance the industry-level analysis. Once a series of
data is available, it could be analysed and benchmarked against labour cost data from regional
countries to better understand Malaysia’s labour cost changes and position vis-à-vis other
countries.
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