How will SPV2030 increase annual incomes despite stagnant wages?

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SPV2030 Aims to Boost Incomes Through Comprehensive Strategies Beyond Just Addressing Stagnant Wages

The Shared Prosperity Vision 2030 (SPV2030) aims to elevate annual incomes, thereby fostering greater spending power and a more robust economy. This vision is underpinned by a multi-faceted strategy that includes upskilling the workforce, modernising the education system, attracting investment, and addressing the evolving nature of employment. While the challenge of stagnant wages is acknowledged, the SPV2030's approach focuses on creating a high-skilled, high-income economy through policy reform and political commitment.
Enhancing Workforce Skills and Adaptability

A core component of SPV2030 involves a significant push for workforce upskilling and reskilling. This initiative acknowledges that the modern economy demands a diverse skill set, moving beyond single specialisations to embrace multiple competencies. The Human Resources Development Fund (HRDF) plays a crucial role by collaborating with employers to provide training, funded by a one per cent levy on registered businesses. This is essential for enabling the workforce to adapt to Industrial Revolution 4.0 technologies and to fill semi-skilled and skilled positions, which constituted the vast majority of recorded job positions in Q2 2019 (62.3% semi-skilled, 24.4% skilled).
Reforming Education for Future Job Markets

The education sector is being reformed to align with the future demands of the job market, aiming to bridge the gap where graduates are currently occupying semi-skilled roles. Plans include introducing foundational digital skills, such as artificial intelligence components, to students as early as Standard Four. Furthermore, technical and vocational education and training (TVET) programmes remain vital for developing skilled tradespeople, ensuring a continued supply of essential workers like mechanics and plumbers. Universities are also undergoing reforms to increase their autonomy, fostering an environment more conducive to innovation and responsiveness to industry needs.
Addressing Technological Disruption and Job Transformation

SPV2030 is designed to navigate the challenges posed by technological advancements, including the potential displacement of mid-skilled jobs and the rise of premature deindustrialisation. The vision recognises that job losses due to technology are not new but require a shift in mentality towards job creation and adaptation. The strategy emphasizes the need for a new Industrial Master Plan to address contemporary industrial and technological challenges, building upon the framework of previous plans like IMP 2006-2020. This forward-thinking approach involves planning for the third decade of the 21st century and working backward to implement necessary changes.
Fostering Inclusive Economic Growth and Social Protection

The vision aims to create a fair economic model that prioritises the B40 group without neglecting other segments of society, moving away from race-based policies. It seeks to increase the average household annual wage, with a target aspiration of RM125,000 from the current RM90,000. Recognizing the changing nature of work, SPV2030 also addresses the need for robust social protection measures, including safety nets for informal and non-standard employment, to cushion the impact of technological disruptions on those unable to adapt. The manufacturing and services sectors, which accounted for the largest share of vacancies in Q2 2019 (55.6% and 20.1% respectively), are key focus areas for SPV2030.

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How will SPV2030 increase annual incomes despite stagnant wages?

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