KUALA LUMPUR, July 3 — More than 2,500 companies have been acknowledged as “Shared Prosperity Organisations” as of last month for implementing the productivity-linked wage system (PLWS), according to the Malaysia Productivity Corporation (MPC).
The sectors covered are manufacturing, services, construction, agriculture and mining and quarrying, it said.
Through PLWS and the e-Shared Prosperity Organisation (eSPO) acknowledgement certificate, MPC is strengthening the resilience of businesses so they are able to sustain beyond the COVID-19 pandemic and contribute to the national economic recovery initiative, said director-general Datuk Abdul Latif Abu Seman.
“With PLWS, the small and medium enterprises (SMEs) have the potential to achieve productivity and profitability gains.
“Therefore, this would also contribute to wage increases. The benefit from flexibility in their employees’ compensation systems and greater employees’ positivity would leads to employee employer engagements and harmonious industrial relations,” he said in a statement today.
The eSPO online platform was initiated by MPC for industry players to be self-assessed on their PLWS components and issued acknowledgement certificates for having implemented PLWS.
MPC said PLWS is a flexible and competitive wage system that distributes wealth created according to employers’ and employees’ performance and productivity in order to drive organisations’ shared prosperity and competitiveness.
The implementation of PLWS has been identified under the Shared Prosperity Vision 2030 and Malaysia Productivity Blueprint as a way to increase compensation and build the workforce of the future.
MPC said it seeks to create a greater awareness of and more participation in PLWS and eSPO among the SME community.
Towards this objective, a webinar on PLWS@eSPO for SMEs was jointly organised by MPC and the SME Association of Malaysia on June 23, 2021.
“The webinar highlighted that shareholders and management leaders of SMEs should view the current COVID-19 pandemic as a timely opportunity for them to introduce PLWS so as to modernise their employees’ remuneration processes in conjunction with operational cost reduction measures such as reducing operation hours, salary reductions and no-pay leave.
“Work performance incentives managed through PLWS can still be open to employees despite the pandemic so that productivity can be maintained or even improved on such as through multi-tasking and multi-skilling,” MPC said.
SMEs with eSPO acknowledgement certificates are viewed as businesses of choice based on the three components namely bonuses incentives, productivity or performance incentives and skills incentives.
SMEs that are interested to understand on how to implement PLWS can email MPC at email@example.com for advisory services. Professional consultancy services can also be arranged, it said.
For further details, visit the eSPO website, http://www.mpc.gov.my/espo/.