NIMP 2030 Integrates Quality Benchmarks On Higher Value-added Job Creation - Economist 

By Danni Haizal Danial Donald

KUALA LUMPUR, Feb 20 (Bernama) -- The New Industrial Master Plan (NIMP) 2030 integrates clear quality benchmarks by refocusing employment targets on higher value-added job creation, said an economist.

bootstrap slideshow

Putra Business School Associate Professor Dr Ahmed Razman Abdul Latiff said job creation under NIMP 2030 will be driven by industrial upgrading and technology adoption rather than by labour expansion alone.

“NIMP 2030 embeds quality benchmarks by shifting employment targets toward higher value-added activities, with clear emphasis on productivity-linked wage growth, formalisation, and skills-intensive roles,” he told Bernama.

He said specific skill sets, such as digital engineering, data analytics, automation, robotics, advanced materials, and system integration, could be emerging under NIMP 2030.

bootstrap slideshow

“I could see that larger firms and multinational corporations can transition more effectively but skill absorption among small and medium enterprises (SMEs) and mid-career workers might be uneven, which probably requires more targeted reskilling pathways.

“The national training and upskilling frameworks can be aligned with industry needs through industry-led curriculum, modular certifications, and closer collaboration with firms. However, challenges in execution remain, especially in translating training outcomes into immediate productivity gains,” he said.

Ahmed Razman also suggested that the government introduce targeted policies, incentives, or capacity-building measures to ensure SMEs participate and benefit from NIMP 2030’s industrial transformation agenda.

“Some targeted incentives under NIMP 2030 could include automation grants, digital adoption support, tax incentives, and technical advisory programmes tailored to SMEs’ requirements.

“These measures can lower cost barriers and enable SMEs to integrate into higher value supply chains rather than remain low-margin suppliers,” he said.

Overall, concrete steps and initiatives to further integrate job creation under NIMP 2030 could translate into higher labour productivity, stronger real wage growth and a more resilient and technology-driven industrial base.

“These outcomes will translate into improved living standards through better quality jobs, higher incomes and more sustainable economic growth for the country,” he added.

Meanwhile, Universiti Malaysia Kelantan Faculty of Entrepreneurship and Business Dean Professor Dr Roselina Ahmad Saufi proposed a fundamental shift in employment methods by introducing the concept of “quality-adjusted jobs” under NIMP 2030.

She said under this approach, employment targets would be weighted based on wage levels and wage growth, job sustainability, and skills intensity, ensuring that policy and firm behaviour prioritise job quality rather than sheer headcount.

“I would also suggest embedding wage growth directly into employment key performance indicators by requiring jobs counted toward national targets to meet minimum quality thresholds.

“Jobs that fail to meet these thresholds would be either discounted or excluded from incentives altogether, while wage progression would be tracked over time and linked to post-creation performance rather than initial salary levels alone,” she said.

To strengthen employment outcomes further under NIMP 2030, Prof Roselina called for job sustainability to be built into target design through a durability requirement, whereby jobs would only be fully recognised if they are retained for at least two to three years and are not primarily temporary.

“Longer job retention, clear internal career pathways, lower involuntary turnover, and demonstrated investment in workforce retention would attract higher recognition, discouraging short-term hiring practices and encouraging long-term human capital development,” she said.

Under NIMP 2030, the Ministry Investment, Trade and Industry targets manufacturing sector value-added of RM587.5 billion, the creation of 3.3 million job opportunities and an increase in median salary to RM4,510 by 2030.

Following the launch of NIMP 2030 on Sept 1, 2023, the manufacturing sector’s value-added to the gross domestic product rose by 4.7 per cent year-on-year, or RM4.2 billion, as of the second quarter of 2024, while the number of jobs increased by 0.9 per cent or 200,000.

-- BERNAMA