Data from Bank Negara and the Nikkei Malaysia manufacturing purchasing managers index (PMI) compiled by IHS Markit Ltd paint a bleaker picture. More than half of the workforce are employed in the services sector with the manufacturing sector employing about 16%. Manokaran says the monthly contribution value growth rate from the EPF’s members have moderated, signalling weak wage growth in recent years. “On average, given that 65% of household income is from paid employment, signs of wages growth moderation could weigh on household income growth going forward,” Manokaran says. He adds that the state of labour market and income growth are among the key underlying factors in assessing the state of economic growth outlook.

Source: The Star October 08, 2016 00:03 UTC