Question 1
Explain four (4) measures which may be undertaken by the government to overcome the problem of labour shortage in Malaysia.
Answer:
Because of high economic growth during the Sixth Plan Period, the demand for labour increased which finally lead to manpower shortage. The government implemented various measures in the Seventh Plan Period to overcome the problem of shortage of labour. The four measures to overcome labour shortage are:
Enhancing the productivity of labour
The productivity of labour could be enhancing through greater effort of skill training and retraining. The new workers or existing workers will be provided with relevant training skills that more in demand such as ICT and accountancy. As a result, the trainees will become productive workers and there will be no need for more manpower involved.
Improving the education and skill delivery system
Government plays important roles in providing and improving the education and skill delivery system as well as expanding education and training facilities to the labour. By doing this, the supply of skilled and knowledge manpower can be increased.
Increasing the supply of R&D personnel
The R&D personnel includes providing scientists and technological will help the government to overcome the problem of labour shortage. Even though the process in research and development (R&D) is in high cost, the government still need to supply R&D personnel to the labour so that they can increase their effectiveness in their productions.
Encouraging greater capital intensity of production
In order to save on the use of labour, the government encourage greater capital intensity of production. As a result, it can reduce the reliance on foreign labour. The reliance on foreign labour will reduce the job opportunities for local workers to apply for the job. Besides, high cost is needed in hiring foreign labour in an organization.
As a conclusion, these measures taken by government can overcome the problem of labour shortage. The government will not faced problem of labour shortage which also affects the economic growth in a country.
Question 2
Discuss four (4) advantages of Privatization Policy
Answer:
Privatization is defined as the transfer to the private sector of activities and functions which were traditionally vested with the public sector. Privatization in Malaysia had been implemented much earlier than 1983 but did not involve transfer of assets or personnel. In 1983, the government then introduced the Privatization Policy. There are many advantages of having Privatization Policy. The four advantages are:
Benefits to the public
The public benefited from the privatization program as the facilities provided were made available earlier than they would have been if they were undertaken by government. Besides, they also benefited through the provision of more efficient and wider coverage of services such as rail services which reduced travelling time and contributed to the alleviation of the urban traffic congestion.
Gains to the government
Saving in capital to the government and a total number of employees were transferred to the private sector will reduce the administrative burden of the government. These saving have reduced the government’s borrowing which could be used for other sectors and finally government will be able to provide better investment climate for local and foreign investors.
Economic growth
Economic growth can be accelerating through greater private sector investment. The efficiency and increased productivity which commonly practiced by the private sector will also generate the growth. Privatization also provides opportunities for development and through the multiplier generates further effects. Besides, the development of new townships with commercial, industrial and residential areas and also further develop the tourism and trade sectors.
Technology transfer
Privatization enabled Malaysians to acquire new technologies and expertise either through collaboration with foreign equity holders, management contract or consultancy services. The construction of the Kuala Lumpur Tower enabled Malaysians to adopt state-of-the-art design and construction techniques. Malaysians are now able to operate and manage new technologies in specific areas of telecommunications technology and in the construction of LRT, which were previously dominated by foreign companies.
As a conclusion, in privatization there is also a lot of potential to grow as the scope is broad. The introduction of privatization policy will provide a lot of benefits to the country such as to the public and government in term of economic growth, technology transfer and others.
Prepared By:
Syahida Abd Aziz (2011)
UiTM Perlis
Diploma in Business Studies
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