Kuala Lumpur: Malaysia's business growth is suffering from a shortage of skilled workers, with 42 per cent of sectors reporting it as a major constraint.

According to the findings of Grant Thornton's International Business Report (IBR), although the percentage was above the global average of 37 per cent, it was, however, lower than the regional average of 47 per cent.

"For the first time this century, regulations and red tape have been replaced by workforce issues as the number one problem holding back medium to large enterprises (MLEs)," said Grant Thornton in a statement here yesterday.

It said 37 per cent of the MLEs reported the availability of a skilled workforce as a constraint on business development, up from 34 per cent in 2007.

"The number of businesses reporting regulations and red tape has dropped from 37 per cent to 31 per cent. However, for Malaysia it remains unchanged at 28 per cent for both years," it said.

Grant Thornton said in the case of Malaysia, the shortage of skilled workforce was also due to many skilled Malaysians working overseas at more attractive salaries.

"Many skilled and professional Malaysians are working in Singapore, China, Australia and the Middle East," it said. SJ Grant Thornton managing partner, N K Jasani, said this was part of the globalisation process and would bring long-term benefits.

"In the meantime our educational institutions need to develop and train more skilled Malaysians while the MLEs consider raising their remunerations to more competitive levels," he said.

Source : PTI