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