4.4 Increasing Productivity
Malaysia’s growth has been primarily labour- and capital-driven.
Our labour supply is limited and the population growth will not match the
constant 7-8% annual GDP growth rate indefinitely. The fight for
limited capital around the world is becoming intensive (as described in
a recent cover-story by Newsweek). Soon the growth rate of labour
and capital supply will reach a plateau. Once this happens, inflation
rates will catch up with GDP growth, which will stagnate the economy.
To further maintain the economic growth, productivity must be increased. An information grid like the NIG must be in place in order to boost productivity, so that even with the decline in the supply of new labour and financial resources, working members of the society can still collectively increase the total output of the country. With increased productivity, increased per capita income in real terms will also follow.
There are various socio-economic benefits to derived from having the NIG in place, as explained in the Benefits chapter. The NIG, with its potential ability to help each party to achieve more quality work using less resources and time, will increase efficiency which is an important denominator in any formula for increasing productivity.