SHAPING THE FUTURE HOW CHANGING DEMOGRAPHICS CAN POWER HUMAN DEVELOPMENT

Equal pay and
reliable, affordable
childcare will open
opportunities for
more women in
paid employment
Governments need to focus on strategies that
will strengthen business confidence and support
private sector growth that will in turn advance
job growth.
Without a stable macroeconomic environment
and good governance, corruption knocks
a significant percentage off growth, while weak
rule of law opens the door to instability, insecurity
and uncertainty. Political turmoil and road
closures (hartals) as in Bangladesh, or street
demonstrations, as recently seen in Thailand,
pose significant challenges to business operations.
When production is halted due to a lack
of stability, countries lose their competitive edge,
and domestic and foreign direct investment is
diverted to other markets, with jobs vanishing
in the process.
Increase labour force participation of women:
Labour force participation of women remains a
major challenge in the region. A large number of
female workers remain outside paid employment
due to family responsibilities. While the contribution
of unpaid work at home is significant,
it should be more equally shared, and women
should also have equal opportunities to pursue
paid employment. Bringing more educated
women to the workforce could deliver a boost
BOX 2.2:
Bringing more women into the workforce in Malaysia
Malaysia has attained gender parity in education
up to the tertiary level, but there is still a significant
gender gap in the workforce, where less than half
of women participate. At 47 percent in 2014, the
labour force participation rate is among the lowest
in South-east Asia. Nearly two-thirds of mothers
who choose to stay at home cite family care as the
primary reason.
to productivity. In 2012, 47 percent of students
enrolled in tertiary education were women. Yet
many female college graduates never join the
workforce, a tendency that will prevent the region
from reaping a full demographic dividend.
Countries in East Asia that achieved a higher
dividend had a higher proportion of women in
the labour market. For example, China’s female
labour force participation rate at 64 percent is
far above the world average of 51 percent. Some
countries have taken proactive steps to boost
women’s employment, such as Japan, which
by 2020 aims to have women in 30 percent of
leadership positions in the government. The
Malaysian Government has announced new
policies aimed at bringing more educated women
to the workforce (Box 2.2). Critical policies to
encourage women’s employment include ensuring
equal pay and rights, safety and security, reasonable
parental leave, and reliable, cost-effective
provision of childcare, among others.
SUPPORT GROWTH OF BUSINESSES,
ENTREPRENEURS AND MARKETS
The private sector is vital for job creation. Supporting
businesses and entrepreneurs to provide
new opportunities entails promoting a healthy
strategic areas in Malaysia’s 2015 budget. The
Government is partnering with private firms to ease
women’s participation, including by offering tax
incentives and grants to companies for providing
quality day-care facilities and hiring mothers. The
Government recently launched Career Comeback
Grants for companies who bring back women who
have taken career breaks.
Non-participation poses a big loss to the economy,
given that the country has invested heavily in
women’s education. A World Bank study in 2012
estimated that women’s greater participation could
provide a growth dividend of up to 0.4 percent a
year. Malaysia aims to achieve high-income status
by 2020, but cannot do so without bringing more
women into the workforce.
‘Upholding the role of women’ is one of seven key
Initiatives to strengthen women entrepreneurs
comprise the Micro Credit and Small Business
Loan Scheme, Get Malaysia Business Online and
the Women Exporters Development Programme.
By 2016, all Malaysian companies will be required
to disclose their degree of gender diversity in their
annual reports. Female labour force participation
is key to the 11th Malaysia Plan for 2016-2020,
‘’Enhancing labour market operations to maximize
efficiency and effectiveness.’’
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Sources: Bloomberg 2014, World Bank 2012b, Economic Planning Unit, Prime Minister’s Department, Malaysia, 2015.