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MALAYSIA
MALAYSIA
The Study on Applying Development Experience
on Third Country Training Programme in
Malaysia
Final Report
August 2018
Japan International Cooperation Agency (JICA)
International Development Center of Japan Inc. M S
J R
18-002
Table of Contents
List of Figures and Tables ........................................................................................................................................ i
Summary .................................................................................................................................................................. ii
1. Study Outline ................................................................................................................................................... 1
1.1. Background and Objectives of the Study ........................................................................................... 1
1.2. Procedure and Schedule of the Study ................................................................................................. 1
1.3. Deliverables ........................................................................................................................................ 2
1.4. Study Team Members ......................................................................................................................... 2
2. Approach to Improving Effectiveness of TCTP ............................................................................................ 3
2.1. Ongoing Practice ................................................................................................................................ 3
2.2. Suggestions for a More Participatory Sessions of TCTP ................................................................... 3
2.3. Structure of Training Materials .......................................................................................................... 4
3. Occupational Safety and Health: Development and Experience ................................................................. 7
3.1. Malaysia ............................................................................................................................................. 7
3.1.1. Occupational Safety and Health Act – DOSH History and Turning Point ..................................... 7
3.1.2. History of DOSH ............................................................................................................................ 9
3.1.3. Serious Accidents ......................................................................................................................... 10
3.1.4. Policy Transition, Background, and Tasks ................................................................................... 10
3.1.5. Other Efforts by the Government ................................................................................................. 13
3.1.6. Influential External Factors on Efforts into Safety and Health .................................................... 14
3.1.7. Roles Fulfilled by Japan’s ODA in Safety and Health in Malaysia ............................................. 16
3.2. Japan ................................................................................................................................................. 18
3.2.1. From Meiji Restoration (1870’s) to the end of the Second World War (1945) ............................ 18
3.2.2. From End of Second World War (1945) to the Establishment of the Industrial Safety and Health
Act (1972) ...................................................................................................................................... 19
3.2.3. From Enactment of Industrial Safety and Health Act (1972) to End of Showa Era (1989) ......... 23
3.2.4. From 1989 to Present.................................................................................................................... 26
3.2.5. International Relations.................................................................................................................. 28
3.2.6. Future Tasks .................................................................................................................................. 29
3.3. Preparation of Training Materials..................................................................................................... 29
4. Productivity .................................................................................................................................................... 33
4.1. History of Productivity Development .............................................................................................. 33
1) Malaysia ........................................................................................................................................... 33
2) Japan ................................................................................................................................................. 36
3) Now and the Future .......................................................................................................................... 38
4.2. Preparation of Training Materials..................................................................................................... 38
4.3. Discussion questions and possible points of discussion ................................................................... 39
Appendices ............................................................................................................................................................. 43
1. Training Materials for OSH ..................................................................................................................... 45
1.1 PowerPoint ........................................................................................................................................ 47
1.2 Facilitator’s Guide ............................................................................................................................. 57
1.3 Handout for Participants .................................................................................................................... 73
2. Training Materials for Productivity ......................................................................................................... 95
2.1 PowerPoint ........................................................................................................................................ 97
2.2 Facilitator’s Guide ........................................................................................................................... 105
2.3 Handout for Participants ................................................................................................................... 115
3. List of Interviewees ............................................................................................................................... 129
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List of Figures and Tables
Figure 2.1 Structure of Training Materials ................................................................................................ 5
Figure 3.1 Trend of Occupational Accidents and Diseases in Malaysia .................................................... 9
Figure 3.2 Number of Occupational Cases Reported and Occupational Disease Rate ........................... 12
Figure 3.3 Morning tool box meeting for team communication and transition briefing ......................... 16
Figure 3.4 Team members pointing at the center of the circle and speaking up together “ensure safety OK”
and “zero injury OK” at the end of the meeting, similarly to KYT (hazard prediction training) .... 16
Figure 3.5 The equipment supplied for assistance ................................................................................... 16
Figure 3.6 Occupational Accidents in Japan............................................................................................ 23
Figure 4.1 LEP trainees in a Japanese Company ..................................................................................... 34
Figure 4.2 Labour movement in Japan after WW Ⅱ ................................................................................ 36
Figure 4.4 Dr. Deming (right in the left picture) and Deming prise (right) ............................................. 36
Table 3.1 History of DOSH ....................................................................................................................... 9
Table 3.2 Occupational Safety and Health Legislation in Malaysia ........................................................ 10
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Summary
1．Study Outline
Third Country Training Programmes (TCTPs) are conducted for participants from developing countries by
other developing countries. Malaysia has provided training in the TCTP on various topics through
collaboration between the Malaysia Technical Cooperation Programme (MTCP) and JICA.
Participants have been inspired from Malaysia’s developments through the TCTPs. However, they could gain
more if the TCTPs could share with them Malaysia’s development journey. Japan’s experience may also be
helpful in that regard. The purpose of this new approach is for the participants to use this knowledge to reflect
on the experience in their own country in order that they can plan ahead to anticipate potentially similar
challenges.
Based on the understanding above, this study has prepared a set of training materials to introduce the
development experience of Malaysia and Japan with an aim at contributing to more effective TCTPs. Training
materials are developed for occupational safety and health (OSH) and productivity. The study was carried
out between October 2017 and June 2018 by a JICA’s study team under the supervision of JICA Malaysia
Office. The field surveys were conducted three times within the period. The study has received advice,
comments and cooperation from the Department of Occupational Safety and Health (DOSH), the Ministry of
Human Resources and the Malaysia Productivity Corporation (MPC). The study team comprises:
- Dr. Jinichiro Yabuta (Leader/Training), Advisor, International Development Center of Japan Inc.
- Mr. Eizo Yamamuro (OSH), Certified Safety and Health Consultant, Japan Association of Safety and
Health Consultants, Tokyo Branch, and
- Mr. Hiro Okuda (Productivity), Professor, Josai International University
Project deliverables comprise this final report and training materials on OSH and productivity. The training
materials consist of power point, facilitator’s guides and handouts for the participants, respectively.
2．Approach to Improving Training Effectiveness
Effectiveness of training depends on its framework such as targets, the length of period, scope and common
features of participants. This study assumes a training programme of about two-weeks each on OSH and
productivity. These courses are developed for government officials and thus have a broad scope. The
participants will be engaged in planning, assigning and working on the tasks. Training for the participants of
this nature will enable them firstly to gain basic understanding of the issues, background and approach of the
subjects and topics, and secondly to apply their understanding to their countries.
Malaysia has abundant experience in conducting international training courses, including TCTP. However,
there are still scope for improvement. Firstly, many of them transfer specific knowledge and introduce the
latest trends, but lack sufficient discussion on why and how such knowledge or trends have come about.
Without such discussion, there is still a large gap in understanding how the current knowledge and trends in
Malaysia could be applied to the reality of their countries. This gap tends to discourage participants from being
interested in the possibility to utilize what they learn in their countries. It is more important to know how
Malaysia made their achievements: the kinds of challenges that were faced and how they were overcome.
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Secondly, many training courses are lecture-based, thus tend to offer limited opportunities for the participants
to think for themselves and discuss among themselves on background contents and possible use of the
information given in lectures. Efforts have been made to encourage participants to exchange information and
ideas between themselves. Such efforts will hopefully provide answers to specific questions about the situation
in Malaysia, or the use of a specific education technic as an end in itself.
Therefore, a key principle for improving training effectiveness will be to encourage the participants to think
and discuss among themselves so that they understand the essence of subject matter and take away useful
lessons and knowledge gained through the training. Under this principle, emphasis is given to the
understanding of historical trends and institutional environment of the subject matter. Another emphasis is the
methods of training: it is to stimulate thought and discussion among the participants, e.g. providing sufficient
length of time and hints for discussion, promoting group discussions and guiding discussions through the
process of action plan making. An attempt will be made by the study team to summarize, in the form of training
materials, the long-term experiences of OSH and productivity in Malaysia and Japan, respectively.
3．Occupational Safety and Health
(1) Malaysia’s Experience
The administration for OSH began in the 19th century with a primary purpose to maintain and operate
equipment and machinery for the tin mining industry, then a major export industry. In the 1960’s, safety and
health issues became a major policy matter as manufacturing industries began to expand rapidly. The Factories
and Machinery Act (FMA) was established in 1967. At that time, its coverage was limited only to the mining,
manufacturing and construction industries. In addition, it was not exhaustive in either punishment, employer’s
responsibility or compensations. As the FMA was being implemented, industrialization accelerated and
resulted in a continued increase in the number of occupational accidents, including a number of severe ones,
that triggered public interest in the OSH. For about 10 years, DOSH considered revisions to the FMA to
overcome its limitations. At the same time, DOSH also learned from the OSH experience in other countries
including those of International Labour Organization and United Kingdom.
Having decided on the approach, the Occupational Safety and Health Act (OSHA) was established in 1994. It
marked a turning point in the management of OSH. OSHA is more extensive and more comprehensive than
FMA in that it covers all types of industry and imposes heavy penalties on employers. OSHA also has shifted
the emphasis of OSH administration from the government to the employer. It moved from regulation by the
government to self-regulation by the employer. FMA is administered in parallel with OSHA up to the present
date.
However, it takes time to strengthen the employer’s awareness and to build their capacity for taking
responsibility for OSH. The government made an intensive effort to strengthen the institutional support for
self-regulation such as a platform for government-private sector communication, enforcement and consultation
at the state level, training facilities, social security, support for awareness raising activities by NGOs, and
support for research and educational institutions. The five-year plans for OSH known as OSH Master Plan by
the Ministry of Human Resources have been an important base to ensure the flow of funds for the institutional
support.
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In this manner, OSH has steadily been implemented. However, awareness and capacity of OSH are still limited
in SMEs. They are still widely recognized to be high risk industries for OSH, especially in the construction
sector. A high priority is thus given to the SMEs under the ongoing OSH policy.
(2) Japan’s Experience
OSH administration in Japan started as early as in the beginning of the 20th century. The Factory Law was
established in 1911. However, social policies had low priority as the government gave the utmost priority to
strengthening the military. After World War II, a full-fledged labour administration was established as a
national effort to adopt democracy. The Labour Law 1947 set out the employees’ rights and spelled out
employers’ responsibilities for their employees. Relating to OSH issues, a number of laws were introduced to
meet the most pressing needs. In 1955, the first Five-Year Plan for Industrial Accident Prevention was
formulated and agreed among the representatives from the government, the employers and the employees.
Similar plans up to the present eleventh version were subsequently drawn up.
Japan started to experience rapid economic growth since the late 1950s. It was accompanied with an equivalent
increase in the number of industrial accidents in the 1960s. Eventually it was brought to a head in 1963 when
a large coal mining explosion resulted in killing 483 persons. These accidents attracted a lot of attention from
mass-media and triggered national concerns over OSH. As a result, Japan Industrial Safety and Health
Association (JISHA) was created in the next year.
Shortly afterward, the number of occupational accidents decreased drastically from the mid-1970s to the 1980s
through OSH initiatives of the government and the private sector. On the government’s part, OSHA was
established in 1972. It stated the role of the government, the division of responsibility within work place,
responsibilities of the main contractor for accidents caused by their subcontractors, the industrial doctor system
and restrictions on work with hazardous materials and toxic substances. An emphasis was also placed on the
government to increase and bolster the expertise of OSH staff in research institutes and universities.
On the part of the private sector, efforts were made to strengthen self-regulation by incorporating safety
concerns into the lines, risk prediction (known as KYT), and initiating an OSH assessment. This approach
aims to reduce risks through preventive measures rather than as an after-thought. The Association of Safety
and Health Consultants was formed in 1983 to provide technical support in OSH to private companies.
Furthermore, the introduction of OSH management system at the company level was made in mid 1990s that
incorporates a plan-do-see cycle for OSH.
4．Productivity
(1) Malaysia’s Experience
In Malaysia, the leading players of productivity improvement were the government and foreign industries. In
the early 1960s, the government created the National Productivity Council (NPC) in order to develop human
resources for industrialization. The NPC produced managers and experts for industries. Together with
engineers trained under the Look East Policy (LEP), they form an important human resource base for
industrialisation. In addition, foreign organizations such as the Association for Overseas Technical Scholarship
(AOTS) and the Asian Productivity Organization (APO) also helped in building the capacity of the industrial
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human resource base.
At that time, the business community of Malaysia were concerned with increasing productive capacity than
productivity. In the SME sector, which comprise most of the establishments, owners and managers invested
more in physical resources such as factory and equipment rather than in human resources.
In the early 1970s, with the adoption of export-oriented industrialisation policies and programmes, the nature
of manufacturing industries changed. Multinational companies (MNCs) were being attracted to set up base in
Malaysia, and their high-tech approach required skills and talent. Thus, the quality of the human resource base
became one of the key factors in attracting foreign investments. The MNCs subsequently contributed to
improving quality and productivity in the entire manufacturing sector through local purchase of parts and
materials.
To further accelerate development of the human resource base, the government also established the Human
Resources Development Fund to accelerate training in enterprises, especially among SMEs. The SMEs were
an important element in the development of supply chains.
In response to this process, the NPC was given a pioneering role in productivity and quality improvement. The
NPC is the predecessor of the Malaysia Productivity Corporation (MPC). With the change in name, MPC’s
main role shifted from human resource supply for industries to awareness raising, methodology development
and information dissemination on productivity improvement. At present, MPC promotes benchmarking and
best practice, industrial productivity database, and regulatory review practice.
(2) Japan’s Experience
Productivity improvement was initiated and sustained with private sector initiative. The Manufacturing sector
suffered from many labour disputes immediately after the Second World War. In this period, business leaders
visited European countries and the US to learn about the productivity movement. They learnt that the western
country’s strong competitiveness was due to the productivity of the production process and the quality of their
products. This lesson led to the establishment of the Union of Japanese Scientists and Engineers (JUSE) in
1946 and Japan Productivity Center (JPC) in 1955. Both these organisations have been the major pillars for
productivity improvement. JUSE led this movement mainly from the viewpoint of quality control, while JPC
led from the viewpoint of harmonious labour relations. In the 1950s, labour representatives were still
suspicious of productivity improvement. JUSE and JPC jointly organized seminars and training courses for
both management and labour representatives, and convinced them that, in Japan, a strong competitiveness
depends on their common understanding of product quality and productivity. This experience suggests that
harmonious labour relations do not come from Japanese culture but from policy efforts.
In the early 1960s, quality control circle, or QC circle, began to be advocated. It is a voluntary, continuous and
work-site-based movement for improving product quality. The QC circle came partly from the experience of
productivity improvement and is complemented by harmonious labour relations. It was first introduced by
Toyota and showed successful results. The basic idea of the QC circle is to control product quality through the
participation of workers in the manufacturing process. Entering the 1970s, there was a common understanding
that product quality could not be improved on factory floor alone but required the entire company to be aligned
to this objective. This understanding is called total quality control or total quality management. JUSE and JPC
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have played important roles in the improvement of product quality and productivity using their expertise, and
its promotion through awareness campaigns and information dissemination.
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1. Study Outline
1.1. Background and Objectives of the Study
TCTP is to train the participants from developing countries in relatively advanced developing countries, or the
third countries. It is a part of South-South Cooperation. TCTP started in Malaysia in 1983. It has attracted
participants from Asia, Africa, Middle East and other developing regions in many subjects such as private
sector development, education and environmental management.
Meanwhile, Malaysia showed steady and favourable growth since independence and reached a GDP per capita
amount exceeding 9,360 USD in 2016. It will be a fully developed country within some years away, with a
widening difference in development between Malaysia and many developing countries. Under the
circumstances, it might be useful for participants from developing countries to imagine their future by exposing
themselves to the present achievement of Malaysia. However, it may even be more useful for them to think of
possible ways to solve their pressing issues by obtaining some insights into the process and background of the
Malaysian achievement as well.
In this way, TCTP could more effectively promote the sharing of experience between Malaysia and developing
countries. In addition, Malaysia itself could share the interest with developing countries by comparing the
experience of Malaysia and other countries, Japan in particular.
In an effort to make TCTPs more effective, this study is aimed at incorporating in some of the TCTP
curriculums the materials to introduce Malaysian and Japanese experience with special reference to OSH and
productivity. Among other subjects, these subjects have been highlighted in consideration of substantial
achievements and possible application of the programs under the Department of Occupational Safety and
Health (DOSH) and the Malaysia Productivity Corporation (MPC). In fact, OSH and productivity are major
pillars to support sustainable development of Malaysia.
1.2. Procedure and Schedule of the Study
The study has been undertaken by a JICA’s study team with support and advice from DOSH and MPC, and
under the supervision by JICA Malaysia Office. Study procedure and schedule have been as follows:
1) Works in Malaysia I: Middle of October 2017
Exchange information and ideas with JICA, DOSH, MPC and relevant Malaysia-based consultant on the
work plan and those to be interviewed
2) Works in Japan I: Middle to Late October 2017
- Prepare Inception Report
- Collect and analyse relevant materials and information and conduct interviews to relevant experts on
the changing issues and policies for OSH and productivity in Malaysia and Japan
3) Works in Malaysia II: January 2018
- Exchange information and ideas with DOSH and MPC on the Inception Report
- Conduct interviews to those recommended by OSH and productivities on the changing needs, issues
and capacities of OSH and productivity in Malaysia, and the features and significance of Japanese
2
experience in OSH and productivity
4) Works in Japan II: February to March 2018
- Synthesize results of the works in Malaysia II
- Prepare drafts of training materials and final report
5) Works in Malaysia III: March 2018
- Exchange information and ideas on the drafts of training materials and final report
6) Works in Japan III: April to May 2018
- Finalize the training materials and the report based on the discussions with DOSH/MPC as well as
JICA.
1.3. Deliverables
- Inception Report
- Draft Final Report
- Final Report
- Training materials on OSH and productivity, comprising (1) automatic slideshow with voiceover, (2)
facilitator’s resource guide and (3) brochures for participants
1.4. Study Team Members
- Dr. Jinichiro Yabuta, Leader and Training
- Mr. Eizo Yamamuro, Occupational Safety and Health
- Mr. Hiro Okuda, Productivity.
It was supported by PE Research Sdn Bhd, a Malaysia-based consultant especially in the preparation of
the training materials.
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2. Approach to Improving Effectiveness of TCTP
2.1. Ongoing Practice
Ongoing training sessions are quite effective in transferring knowledge on the current practice of OSH or
productivity from Malaysia to elsewhere. However, gaps between Malaysia and countries where participants
come from are sometimes too large for them to absorb the knowledge. They sometimes take the knowledge
without getting insight in why and how Malaysia has come up with the present situation. They do understand
the knowledge, but not many participants are motivated to make use of the knowledge for their own countries.
This situation tends to result in a unilateral communication in training sessions, with a limited opportunity for
the participants to think and discuss by themselves. A lecturer asked many questions to the participants and
encouraged them to think by themselves. However, the lecturer unfortunately answered for all the questions
by himself without waiting for participants to respond. Role playing is sometimes introduced. It is useful to
encourage participants to experience knowledge and learn from the experience. However, more effort would
be needed to encourage participants to think by themselves.
2.2. Suggestions for a More Participatory Sessions of TCTP
The observations above entail the following suggestions:
1) Training Material
(1) Reducing the gaps felt by participants
The training materials presented in this study does not only introduce the latest situation and success cases but
also make it clear that both Malaysia and Japan once suffered from varying problems, solved the problems
through varying methods and efforts, and finally came up with the present situation. In this way, the training
materials are expected to encourage the participants to think that they could also do the same based on their
own effort, not attributing achievements of Malaysia and Japan to the Malaysian and Japanese people.
(2) Providing the participants with clues to think
The training materials are expected not to transfer detailed knowledge but to let the participants have a broad
perspective on the development trends and think about issues for development of their countries by taking
some cue from the experience of Malaysia and Japan. The training materials are thus supposed to explain
socio-economic background, trigger, event, players and consequence of major changes in development process.
2) Training Method
(1) Ask Questions
One of the major outputs expected from this TCTP is the participants’ basic awareness and understanding on
the topic. It is in this regard that facilitators are encouraged to guide the participants to give their full attention
to the TCTP, whereas some of them tend to remain passive.
A stress should be given to throwing questions. The questions should not be answered by facilitators. They
should wait until participants try to answer by themselves. This process is more important than the answers
themselves. The facilitators are not supposed to prepare questions to confirm understanding of the
participants/participants on the Malaysian or Japanese experiences but to review such experiences in the
4
context of the countries they are from.
A question for instance would be “Which initiative would work better in the OSH improvement of your country,
government or private?” The facilitators may encourage participants to think further by asking “Why so?”
There is no universal answer to the question of this kind. The facilitators would encourage the
participants/participants to continue to discuss on possible options or option-mix for different conditions in
different countries.
(2) Let the participant have time to think by themselves
Malaysian and Japanese experiences are introduced by a power point slide show of no more than 10 minutes
as a material for the participants to discuss the issues and future perspectives of OSH of their countries. In an
attempt at stimulating their thought, handouts could be distributed to the participants to show possible issues
and/or formats for answering the issues.
(3) Promote the exchange of information and ideas among themselves
Intensive communications among participants with different socio-economic background are an advantage of
combined training for those from different countries. This TCTP also emphasizes the exchange of information
and ideas among participants on top of knowledge transfer from facilitators and lecturers to the participants.
The exchange could be more effective when a training program assumes a common target for the participants.
To this end, this program incorporates the preparation of action plans at its end. Facilitators are expected to
encourage the participant to come up with some key concepts for the action plans through the exchange in this
session.
2.3. Structure of Training Materials
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Figure 2.1 Structure of Training Materials
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3. Occupational Safety and Health: Development and Experience
3.1. Malaysia
3.1.1. Occupational Safety and Health Act – DOSH History and Turning Point
1) Before Independence in 1957
Primary industries such as tin mining, rubber, and palm oil industry had been developed since the 1870s. At
that time, steam boilers provided power for the tin mining industry. The steam boiler, which was equipped with
gears and rubber belts rotating at high speed, were at risk of explosion or wreckage. The first boiler inspector
was appointed in 1878 to carry out safety inspection on boilers for the Bureau of Mines. Then boilers and
engines were inspected twice a year. Each state had its own regulations until they were unified into one
Ordinance on Steam Boilers in 1908.
The first Ordinance on Machinery replaced the Ordinance on Steam Boilers in 1914. The boiler inspectors
became machinery inspectors as well, whose charge extended to internal-combustion engines, hydraulic
turbines, and other machines. As most machines were used in the mining industry, these inspectors were under
the Bureau of Mines. In 1952 the machinery and boiler section were moved to the Machinery Department as
other industries started to overtake mining in the use of machines. A second Ordinance on machinery in 1953
abolished the states’ own ordinances on machinery.
2) From Post-Independence to Implementation of OSHA, 1957 to 1994 (FMA Period)
The Factory Machinery Act (FMA, Act No. 132) was enacted in 1967 and 8 ordinances prior to the Ordinances
on Machinery were abolished. FMA included even business sites that operated without machinery and was
applicable to any business site with 5 or more workers in the manufacturing, mining, quarrying, and
construction industries. As a result, FMA covered only 24% of workers in the 1980s. FMA introduced a lot of
prescriptive details following the then laws and regulations in the UK and ILO standards. Since FMA described
how the machinery was to be designed and manufactured, it was appropriate for manufacturing, but not for
other industries. The Inspectors’ role covered not only safety of machines but also labour safety in the factories
where machines were used. Although there were regulations on safety, health, and welfare, they were not
completely enforced, and the Act lacked many aspects of health. In addition, safety and health were viewed as
the government’s responsibility and so could be improved only if the government’s inspection and supervision
were more stringent.
As industries became more diverse, so did the occupational hazards and risks. The Machinery Department was
renamed Factory Machinery Department (FMD), and to cope with industrial changes, it was reorganized into
several sections. In the 1970s, when several cases of lead poisoning occurred FMD set up a section on industrial
health to investigate the disasters. As a result, the Lead Regulation was passed, setting exposure limits and
controls. During this period other regulations on occupational health were passed to deal with asbestos, mineral
dust and noise. In the early 1980s, as the petroleum and gas industry developed, the petroleum and gas
companies experienced many disasters. To cope with that, the Petroleum (Safety Measures) Act was enacted
in 1984, and the FMD set up the petroleum safety division in 1985.
3) From Implementation of OSHA to Present
The Occupational Safety and Health Act (OSHA) (Act No. 514) were enacted in 1994 to respond to the
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increasing number of occupational accidents that resulted from the rapid growth of the economy since the
1980s, and also to overcome the limitations of FMA. As a result, OSHA extended its coverage to about 90%
of workers then, excepting sailors and soldiers. As a result, FMD was renamed Department of Occupational
Safety and Health (DOSH).
OSHA is based on the principle of self-regulation, requiring consultation between the government, labour, and
management. After 10 years of study of OSH in UK, Australia, Japan, and other countries, OSHA was enacted
in 1994. It was modelled on UK’s Occupational Safety and Health Act, which was also based on the philosophy
of self-regulation.
Although labour welcomed OSHA, managements objected, fearing it might be costly. Instead of DOSH
providing directives, self-regulation meant that management was to implement their own safety measures that
were “as far as practicable”. This was seen to mean any mitigating action taken for a hazard and its risk at the
workplace will depend on the severity of the hazard or risk and choosing the best possible option after
consideration of its suitability and cost.
When the concept of self-regulation was first implemented, neither the government nor companies were
prepared because of the lack of knowledgeable, skilled personnel and institutional infrastructure for
implementation. Hence DOSH focused on building up the infrastructures and the capacity for self-regulation.
After 24 years of OSHA, it can be said that self-regulation is now in place. So, in the DOSH Master Plan of
2020 the objective has moved to creating of a ‘safety and health’ culture at the workplace.
DOSH has proposed to rationalize the provisions of FMA and OSHA. It is due for presentation to the cabinet
in the near future.
4) Master Plan for Safety and Health
The 2015 master plan for OSH was established in May 2009. It aimed to ensure workers operate in a productive,
safe and healthy environment. Further, the master plan, covering the period 2016 to 2020, aimed to accelerate
the promotion, preservation, and improvement of OSH as fundamental to achieving Malaysia’s 2020 Vision.
Specifically, it is aimed to reduce the labour accident rate per 1,000 workers from 2.81 in 2015 to 2.53 in 2020,
and the labour fatality rate per 100,000 workers from 4.84 in 2015 to 4.36 in 2020. The present challenge is
that the recent labour accident rates have stagnated. As a comparison, in Japan, the labour accident rate per
1,000 workers was 2.3 in 2015, and the labour fatality rate per 100,000 workers was 1.8 in the same year. To
achieve these targets, the government will strengthen its leadership in safety and health.
As industrial development in Malaysia continues to advance, improvements in OSH are crucial for maintaining
a sound social economy.
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3.1.2. History of DOSH
Over the years, DOSH changed its organizational structure to reflect changes in the economy and industry as
it promoted safety and health. Its history from the era of the FMA is summarized below:
Table 3.1 History of DOSH
1970 The Machinery Department was renamed “Factory Machinery Department”
1985 The Industrial Hygiene Division was established. (See 2005 below).
Petroleum Safety Division was established.
The Petroleum Development Act was passed in 1974, and Petronas, a government owned
company, was established to develop all oil and gas resources. In the early 1980s, the petroleum
and gas companies encountered many OSH issues. In response, the Petroleum (Safety Measures)
Act was enacted in 1984 together with the Transportation of Petroleum through Pipeline (Safety
Measures) Regulation 1985. The petroleum safety division in DOSH was set up in 1985. At
that time factory machinery inspectors doubled up as petroleum inspectors.
1994 The Occupational Safety and Health Act (OSHA) was enacted, and FMD was renamed the
Department of Occupational Safety and Health (DOSH); their inspectors became the
‘occupational safety and health officers’. In the early 1990s, new hazardous and dangerous jobs
were created by the rapidly developing manufacturing and construction industries. DOSH was
reorganized into 6 divisions and 13 state offices.
2005 The Industrial Hygiene Division was separated into three divisions to cope with increasing
number of investigations of occupational diseases caused by harmful chemicals. They were:
Occupational Health Division: in charge of occupational diseases and carrying out of medical
examinations;
Chemical Management Division: in charge of investigations into the handling of chemical
substances and indoor atmosphere environment; and
Source: SOCSO
Figure 3.1 Trend of Occupational Accidents and Diseases in Malaysia
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Industrial Hygiene Division: in charge of noise, ergonomics, heat, confined space, workplace
illumination, and calibration of testing equipment.
2007 The Forensic Engineering Division was established as a result of a cabinet decision after a
construction accident in 2006. This Division provided technical assistance to investigations
carried out by the state offices, especially in cases where the public was involved.
2014 SME and Non-Factory Sector Division established.
In Malaysia, 97.3% of all firms are small and medium-sized enterprises (SMEs). They account
for 62% of all reported accident cases and 32% of all occupational disease cases. Due to this high
occurrence of accidents and occupational diseases, the SME division was established to give
priority to promoting and enforcing awareness of safety measures in SMEs. In addition, the
division was set up to deal with the increasing accident rates occurring in non-factory sectors
such as agriculture, fisheries and tertiary industries.
OSH legislation in Malaysia is summarized below:
Table 3.2 Occupational Safety and Health Legislation in Malaysia
Act FMA 1967 OSHA 1994
Regulation 19 8
Order 2 2
Cord of Practice 7
Guideline 54
In contrast, Japan’s Industrial Safety and Health Act had 18 ordinances, 185 notifications, 45 public notices,
and other notes.
3.1.3. Serious Accidents
Inscribed in the collective memory is the serious fire and explosion accident at the Bright Sparklers Fireworks
factory in Sungei Buloh in 1991, resulting in 22 fatalities, 103 casualties and damage to surrounding property
of RM1 million. A Royal Commission report said the company failed to implement safety measures to handle
and store highly inflammable chemical substances, and there was non-compliance of existing regulations and
lack of enforcement by related government agencies. The case was a wake-up call to government agencies and
the public on the importance of safety at the workplace.
3.1.4. Policy Transition, Background, and Tasks
1) Self-Regulation
In UK, a regulation was passed every time a bad accident occurred. The number of regulations increased so
much that even supervisors were not able to keep track of them. Lord Robens headed a commission in 1972 to
look into this matter and streamlined the legislation on Safety and Health at Work. The report controversially
stated that a nation’s laws and regulations are limited in preventing labour accidents, and that the self-
regulation by employers would be more effective. On acceptance of this report, the UK government passed a
new Health and Safety at Work Act in 1974. This Act was epoch-making as it stipulated only basic
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requirements and called for self-regulation by employers on detailed safety measures. The responsibility for
safety and health shifted from compliance with laws and regulations to self-regulation. After 25 years of
implementation, fatalities in 2009 decreased by 81% when compared with those in 1974. The concept of self-
regulation received high accolades from organizations and other nations. It was later introduced as the
underlying principle for the EC codes, ILO conventions, ISO codes, and Occupational Safety and Health
Management System (OSHMS).
After studying several nations’ laws and regulations on OSH for 10 years, Malaysia passed its own OSH Act
in 1994, modelled on the UK’s self-regulation-based Occupational Safety and Health Act 1974. Under FMA,
it was the responsibility of the government to ensure safety by carrying out inspection of machines. OSHA
1994 shifted this responsibility to the business’ management under the principle of self-regulation. At that time
private companies did not have enough the knowledge and skill on safety and health issues to self-regulate.
Hence DOSH embarked on providing safety and health training and developing infrastructure and capacity for
promoting safety and health. Since then larger enterprises have instituted their own safety and health
management systems, but small and medium-sized enterprises (SMEs) that make up 97.3% of all the
enterprises still have difficulties in doing so. After 24 years the Master Plan of 2020 set the target to ensure
progress from self-regulation to developing a culture of safety and health at the workplace, regardless of size.
2) Occupational Safety and Health Management System (OSHMS)
To-date, only 1% of enterprises have implemented the OSHMS in Malaysia and it is mostly by larger
enterprises. In contrast the implementation rate in Japan is currently 7% only; despite the notification issued
in 1999 to promote OSHMS. The reasons for such a low adoption rate were that it was not well understood
how to introduce OSHMS, and that there were insufficient qualified personnel to promote it.
To deal with this problem, Japan’s Ministry of Health, Labour and Welfare supported the Japan Association of
Safety and Health Consultants in the AEAN+3 OSHNET Dialog, where the SME OSHMS Guidelines were
developed in 2010. This enables small and medium-sized enterprises (SME) to easily implement OSHMS
based on the ILO guidelines. The Small Medium Industry and Non-Factory Sector Division in DOSH plan to
promote the above OSHMS guidelines to SMEs in 2018.
OSHMS is included in the Third Country Training Program (TCTP), especially when the training is provided
by the Japan Industrial Safety and Health Association (JISHA) under JICA’s other training programs. Hence
participants in the training are required to propose an action plan to implement OSHMS.
OSHMS was expected to be a breakthrough in reducing accident rates in Japan and Malaysia, but the
implementation rate for OSHMS in both countries had been far from satisfactory. It is suggested that in order
to improve this rate further guidance is required, including training for the implementation of a simplified
OSHMS. On that basis, use of OSHMIS is recommended as a new method for the sustained reduction of
accident rates. Although OSHMS may look attractive at first glance, the focus should remain on the reduction
and prevention of accidents in routine activities.
3) Chemical Substance Management
The Chemical Management Division was established in 1994, enforcing the regulations on handling of
chemical substances in industry. Reporting occupational diseases started only 3 years ago. While there are
40,000 reported cases of injuries from occupational accidents, only 3,000 cases of occupational diseases were
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reported (5,617 cases in 2015). (In contrast, 117,910 cases were reported for occupational injuries and 7,361
cases for occupational diseases with 4 or more lost days in Japan)
Occupational diseases are investigated in cooperation with doctors and nurses seconded from the Health
Ministry. It appears that the knowledge of occupational diseases caused by hazardous chemical substances is
not sufficient among the medical staff, business management, labour, and the public. The investigation into the
causes is further complicated because symptoms may appear much later, after the employee has changed jobs.
In accordance with existing laws and regulations, employers must manage hazardous and harmful substances
using available technology, knowledge, human resources, and budget for its safe handling as much as possible.
4) Safety and Health Training
Various industrial associations and non-profit organizations are currently involved in safety and health training.
They include FMM (Federation of Malaysian Manufacturers), NIOSH (National Institute of Occupational
Safety and Health), MBAM (Master Builders Association, Malaysia), CIDB (Construction Industry
Development Board), MSOSH (Malaysian Society for Occupation Safety and Health), SOCSO (Social
Security Organization), SMEAM (SME Association Malaysia), MTUC (Malaysian Trade Union Congress),
and MIHA (Malaysia Industrial Hygiene Association) as well as DOSH.
In general, occupational accidents and diseases are caused mostly by the lack of knowledge about the properties
of hazardous or harmful substances and how to handle them. It is necessary for safety and health training to be
conducted all levels since knowledge is a key to accident prevention.
For example, the appointment and training of safety officers is required by law, and their training has to be
certified by NIOSH. Safety officers are increasing in number because of legal requirements, easy availability
of courses, and a training-fee support system provided from the Human Resource Development Fund (HRDF).
The Fund reduces the financial burden of course fees on the management. It is proposed that training should
be mandated by law as in Japan, where training is stipulated in the laws and regulations.
5) Line Management of Safety and Health—Clarification of Management Responsibility and Safety
Source: SOCSO, Trend of Occupational Accidents and Diseases in Malaysia
Figure 3.2 Number of Occupational Cases Reported and Occupational Disease Rate
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Awareness
The Factory Machinery Act (FMA) premise was that the government was responsible for regulating OSH.
However, the Occupational Safety and Health Act (OSHA) prescribed that responsibility to those who created
the risk (employer) and with those who work with the risk (employees).
In Japan, 4 years after enactment of the Industrial Safety and Health Act, fatalities decreased from 5,631 in
1972 to 3,345 in 1976. This was because the management was given clear responsibility for safety and health.
This illustrates that top management’s awareness is imperative for improving safety and health at the
workplace.
However, it is difficult to raise management’s awareness on safety. Although it is successful in Japan, it not so
in Malaysia even though it is legally prescribed. This is because managements in many struggling SMEs
perceive that safety promotion is costly and does not contribute directly to profits.
One interviewee expressed the opinion that the only way to improve the management’s safety awareness was
to wait for a generational change. If this is true, teaching safety and health should begin at the school level. In
view of this, the master plan of 2016-2020 has included such a program. Meanwhile, legal enforcement is
important and as such DOSH has proposed a change to increase the penalties to be paid by companies found
contravening the existing laws and regulations.
3.1.5. Other Efforts by the Government
1) Social Security Organization (SOCSO)
Established in 1971, SOSCO has been providing three main services, i.e. accident compensation, rehabilitation,
and promotional activities for accident prevention. Employers pay 1.75%, and workers’ pay 0.5% to SOCSO
for the insurance under to the Employee Social Act 1969.
Last year the amount of accident compensations paid out was about 4 billion RM. Since 1992, compensation
paid for commuting accidents have been increasing in number and amount. Presently, there is no one agency
in charge of accident prevention so there is no progress for reducing traffic accidents. The accident
prevention section was established in SOCSO in 2007 to manage the increasing number of commuting
accidents. It spends about 4 million RM yearly to promote accident prevention. No national system was present
for compensation before the establishment of SOCSO in 1971.
Foreign workers are not covered by the Act, so they are excluded from the compensation from SOCSO, but
employers are required to buy private insurance for them before a work permit can be issued. ILO has pointed
out that this exclusion is discriminatory towards foreign workers.
Besides commuting accidents, SOCSO faces another challenge. Occupational diseases are not well reported
because there are not enough occupational doctors. Medical doctors were seconded from Ministry of Health
since 1971 and certain regulations relating to occupational diseases arising from asbestos, mineral dust, lead
poisoning and noise were raised since the 1980s. It was noted then that there had not been enough qualified
doctors to diagnose occupational diseases, so efforts have been put into training doctors specializing in
occupational diseases. The numbers have grown to the point where for 2018, the Ministry of Health has
proposed that government clinics will have one day set aside to specifically deal with patients with
occupational diseases.
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2) National Institute for Occupational Safety and Health (NIOSH)
NIOSH was conceived in 1985 as one of requisites for self-regulation under ILO recommendation and with
support from ministries, management associations, and labour unions. It was established in 1993 and its four
main activities are: training, consultation, research and development, and information delivery. It provides fee-
based training to private enterprises. The key to the sustainability of NIOSH is fee-based training in addition
to supporting funds from the government and SOCSO.
NIOSH was formed as a company with its own board of directors headed by a director seconded from DOSH.
It started with an endowment fund from SOCSO. The Institution received assistance through the Technical
Cooperation Project, Japan, for 5 years from 15 Nov. 2000 to 14 Nov. 2005. NIOSH currently boasts of a
membership of 350.
Since 1999, the training is wholly Malaysian in nature. About 70 –75 % of the training modules at NIOSH are
regulatory in nature, with the balance non-regulatory ones such as awareness programs. Cross-fertilization in
the training provided is ongoing with other developing countries, either by dispatching facilitators from
Malaysia to foreign countries or receiving foreign participants into Malaysia.
3.1.6. Influential External Factors on Efforts into Safety and Health
1) Entry of European and American Companies
After a foreign company discovered oil in Sarawak in 1910, the oil and gas industry flourished. The foreign-
owned petroleum and gas companies encountered many safety issues. Experts in safety and health, including
industrial hygienists, were sent from their parent companies in the US and UK for investigation and to provide
guidance in setting up of OSH Management systems. Relevant parties including the national petroleum
company, PETRONAS, have learnt much from those foreign companies in the 1990s.
In order to transfer this knowledge and experience to other industries, the Malaysia Industrial Hygiene
Association (MIHA) was established in 2003 as a pioneer in the industrial hygiene in Malaysia. MIHA boasts
a membership of 900.
2) Japanese Companies’ Efforts in Safety and Health (Voluntary Activities of Bottom-up Type)
Many Japanese companies invested in the textile and electric/electronic industries in the 1970s because of
cheap labour. At present, there are approximately 1,400 Japanese companies operating in Malaysia. Many of
them have replicated the safety and health systems of their Japanese parent companies. They have trained many
competent workers through their in-house training in OSH. These include bottom-up approaches such as
hazard prediction training (KYT), near-miss reporting, tool-box meeting, 5S (housekeeping and habit), risk
assessment by groups, and workplace inspection. This is one of the reasons why Japanese companies’
performance on safety and health in Malaysia has significantly improved.
Below is a description of the efforts put into safety and health by a Japanese company operating in Malaysia:
The company is a 100% subsidiary of a Japanese company and started its operations in 1992, manufacturing
sintered machinery parts such as powder metallurgical bearings. It has 200 employees comprising 162
Malaysians and the balance being Bangladeshis. There are also 3 Japanese in the positions of president, plant
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manager, and quality control manager. Their shipment value per month is about 100 million Japanese yen. The
company has obtained ISO 9001 and OHSAS 18001 in 2003, and ISO 14001 in 2013 certification.
Occupational accidents have decreased from 6 injuries without lost time in 2016 to 2 injuries (dust caught in
an eye and fall from a step ladder) without lost time in 2017. No commuting accidents have been reported.
Two safety officers are appointed from the general affairs section and are in charge of safety management in
the plant.
Safety and health activities organized include a monthly general meeting, confirmation of compliance in safety
and health, sharing of information on accident cases occurring in other companies, and traffic safety programs.
General inspection of the workplace is also conducted, followed by a report with photos, and proposed actions
for improvement. The employees are required to participate in training relevant to their jobs and on attending,
are required to sign the training record.
Facilitators from outside agencies are called in to provide the training in ergonomics, material handling, forklift,
confined space, and so on, with focus on regulatory compliance. Standard operating procedures are set for each
operation. So far, no case of hearing loss has been reported in the company. The DOSH state office has not
been to the plant for inspection yet. Physical examination for the employees is conducted once a year. Smoking
is allowed only at a specified area to curb passive smoke. These practices on safety and health follow
requirements prevailing in Japan.
3) Hazard Prediction Training (KYT)
KYT is a distinctive voluntary activity in the area of occupational safety in Japan. In Japan it is common to see
a work team conduct KYT at the start and close of work, with all members in the team pointing and speaking
up on safety issues they face at work.
In Malaysia, it was learned from several interviewees that KYT is being implemented in large-sized enterprises,
but not in small and medium-sized enterprises. The vice-president of the Small and Medium-sized Enterprises
Association in Malaysia (SMEAM) did not know about KYT. The scene where team members are actively
participating in a meeting is not common in Malaysia. It would be due to cultural differences in work functions.
It was observed, however, that a certain Japanese company was implementing KYT routinely and under the
managers’ strong leadership displayed hazard prediction (KYT) sheets with illustrative pictures. On the whole,
KYT is still new in Malaysia.
KYT is included in the Third Country Training Program (TCTP), specifically in the training is conducted by
the Japan Industrial Safety and Health Association (JISHA) under JICA’s “Group and Region-Focused
Training in Japan”. In Japan, several KYT versions have evolved so that they can be applied in different types
of companies. Pointing and speaking up in the meetings is not necessarily followed in some companies. It is
desirable to choose and suggest the different KYT types so that the program can fit the respective countries.
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Figure 3.3 Morning tool box meeting for team
communication and transition briefing
Figure 3.4 Team members pointing at the center
of the circle and speaking up together “ensure
safety OK” and “zero injury OK” at the end of
the meeting, similarly to KYT (hazard
prediction training)
3.1.7. Roles Fulfilled by Japan’s ODA in Safety and Health in Malaysia
Japan’s Official Development Assistance (ODA) for Safety and Health in Malaysia covered technical
assistance described below.
1) Project for Capacity Building of NIOSH in Occupational Safety and Health
(1) Outline
This project was conducted between November 2000 and November 2005. It was to enhance the functioning
of the National Institute of Occupational Safety and Health (NIOSH) through technical assistance, capacity
building of human resources, and improved information collection.
Figure 3.5 The equipment supplied for assistance
(2) JICA’s Cooperation
Malaysia requested for technology transfer in OSH and the items below were provided through JICA:
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⚫ Measurement, assessment, and improvement of harmful substances in the working environment
⚫ Design of local exhaust ventilation system
⚫ Ergonomics and work management
⚫ Physical examination of workers handling harmful substances
⚫ Biological monitoring method
⚫ Training for personnel working on industrial hygiene
⚫ OSH management in small and medium-sized enterprises
⚫ Guidance and advice for the government administration of safety and health
⚫ For the project, JICA was the coordinator. Japan’s Ministry of Health, Labor and Welfare dispatched a
leader and two experts in health control, and Japan Industrial Safety and Health Association (JISHA) sent
experts in industrial hygiene. In total, there were 9 long term experts and 37 experts for shorter periods.
Thirty participants participated in the training in Japan. In total, the assistance cost about 200 million
Japanese yen, which included supply of the equipment and materials, mainly analytical equipment.
(3) Achievement
A detailed evaluation of the NIOSH project was made in 2005 on the key aspects of the technical support:
relevance of the objectives, technical aspects, human resource development, effectiveness of information
collection, efficiency of experts dispatched and use of supplied equipment and materials, enhancement of OSH,
project impact in terms of increase in the awareness of government and business, continued needs identification,
and project sustainability. In technological aspect, the evaluation found that the frequency of measurements
increased as NIOSH staff members learned the technologies to measure work environment. The evaluation
also found an increasing number of those workers who go to medical check-up since opening of the
occupational health centre. In human resource development aspect, the evaluation identifies improvements in
contents and staff of training. In conclusion, the project received a high endorsement.
During this study, a member of the NIOSH staff explained with confidence to the study team about the project
and the equipment. The study team confirmed that NIOSH still makes use of the technology transferred through
the project for ongoing research and analysis.
2) Project for Improving Occupational Safety and Health Administration of DOSH
(1) Outline
The OSH Master Plan for Malaysia, First Phase 2005-2010 prepared by DOSH emphasized three areas of
legislation, effective law enforcement and awareness raising. Action plans were prepared for each of these
areas. The Malaysian government requested to the Japanese government for technical cooperation in the law
enforcement and the awareness raising.
The project was implemented between April 2007 to April 2012. It was aimed at improving the administrative
capacity of OSH to reach a level being comparable to those of advanced countries. A major target of the project
was the construction industry and small and medium-sized enterprises.
(2) JICA’s Cooperation
The project was designed to strengthen the capacity of Ministry of Human Resources and DOSH to manage
OSH. Specifically, it aimed to improve their administration, procedures, inspection and supervision. Training
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programs were conducted in Malaysia and Japan for the purpose of awareness raising and dissemination of
OSH. The project cost was about 130 million Japanese yen.
A total of 47 participants were trained in Japan for 4 years at JICA training centers since 2007. Training was
provided by JISHA, the University of Occupational and Environmental Health, and the Japan Construction
Occupational Safety and Health Association. Further training was conducted at the DOSH state offices as well
as in Kuala Lumpur for 76 participants in SME supervisory training and for 79 participants in construction
supervisory training.
(3) Achievements
Many members of the DOSH staff interviewed by the study team had been trained in Japan and are in
leadership roles as directors to design policies and enforce programmes on OSH. Occupational accident rate
was 2.81 persons per 1,000 workers in 2015. It is close to the rate being 2.3 persons in Japan in the same year.
Based on this achievement, Malaysia is now a leading country in OSH, which host the TCTPs on
administration, policy making and legislation for OSH.
3) Third Country Training Program (TCTP)
DOSH is taking an active lead role in the TCTP on OSH for government officials in Cambodia, Laos, Myanmar,
Viet Nam. The training in construction safety was provided for participants from Laos, Myanmar, and Vietnam
during the period from 2013 to 2015. The training was expanded to cover the OSH area for small and medium-
sized enterprises, with participants from the three countries above and for Cambodia in 2016 and 2017.
Malaysia developed the training materials, arranged or invited facilitators, while Japan bore a half the cost
through JICA.
3.2. Japan
3.2.1. From Meiji Restoration (1870’s) to the end of the Second World War (1945)
1) Industrial Development and Emerging Problem of Industrial Safety and Health
After the Meiji Restoration, Japanese industry developed rapidly in areas such as textiles, mining, and steel
under the government policy of "increasing wealth and military power" and "encouraging new industries".
While large-scale modern businesses served as the core engine for the development with strong support by the
government, many small-to-medium-sized factories also emerged. Labour in these factories were mostly
female or young workers, who were forced to work under harsh working conditions. These included poor
dormitory environments and long- working hours that usually included working at night. As a result, many
workers were affected with tuberculosis. The disease did not stay at the factories only but started to spread into
farm villages when the infected workers returned to their homes. This situation not only affected the labour
supply for the industrial development in Japan, but also had an adverse impact on the draft system. As the two
situations were seen to be the key to "increasing wealth and military power", Both countermeasures and
changes in social policy were required for the protection of workers.
2) Establishment of Factory Law and Related Regulations
The government appeared to have put in policies on the protection of workers since 1882, and even in the
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Factory Law 1911. The Factory Law was enforced in 1916 despite controversial arguments that arose. Besides
the 1911 Factory Law, other legislation relating to occupational health enacted included the Ordinance on
Ancillary Dormitory to Factory 1927, the Ordinance on Factory Harm Prevention and Health 1929, the
Ordinance on Safety and Health for Soil and Stone Collection Pit 1935, the Ordinance on Safety and Health
for Civil and Building Work 1937. In 1931, the Labour Disaster Assistance Act and the Liability Insurance Act
were also passed. It established the employer’s liability for labour disaster assistance.
3) Government Organization in Charge of Labour Issues
Under the Labour administration after the Second World War ended, industrial safety and health affairs were
taken over by the social department of the Health and Welfare Ministry.
4) Movement in the Private Sector
(1) Industrial Welfare Association
In the private sector, the movement for labour protection arose due to concerns about the tragic situation of
workers. The Industrial Welfare Association, the first private association in Japan to be concerned with the
industrial safety and health, was established in 1925. It is regarded as the first of the current accident prevention
associations.
Kurashiki Labour Science Research Institute
Before the Industrial Welfare Association, Magosaburo Ohara, the president of Kurashiki Spinning Company,
had established the Kurashiki Labour Science Research Institute in 1921. It was needed to investigate health
control measures for female workers for his factory. The Institute has since contributed significantly to
industrial hygiene. This Institute was subsequently renamed the ‘Ohara Memorial Labour Science Research
Institute’.
(2) National Safety Week, National Safety and Health Exposition, and National Industrial Safety Convention
The first National Safety Week was launched in July 1928 at the suggestion of the social department of the
Internal Ministry with the support from the Industrial Welfare Association. In 1931, the first National Safety
and Health Exposition was held during the third National Safety Week. The first National Industrial Safety
Convention was held in 1933. In those days, some of the large-scale companies had started their own safety
and health activities with originality and ingenuity. From then safety and health activities burgeoned in private
companies. These events were suspended during Second World War, but they were revived after the war and
have continued till today.
3.2.2. From End of Second World War (1945) to the Establishment of the Industrial Safety and Health Act
(1972)
1) Establishment of Labour Standards Act and Subsequently Enhanced Regulations
After the end of the Second World War, the democratization policy that was promoted by the Allied Forces
caused significant changes in Japanese politics, economy, and social structure. In the area of industrial safety
and health, it was ground breaking when the Labour Standards Act 1947 replaced the Factory Law 1911. The
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Act expounded the ideal that workers have the right to work in safe and healthy environments and that
employers are obligated to secure that right. During the chaos after the Second World War, requirements for
industrial safety and health as set out in the Labour Standards Act were generally ignored, but over time these
requirements were gradually accepted by large companies.
Subsequent amendments (below) were passed to enhance the legislation set under the Labour Standards
Act 1947:
Health Manager System, 1949
Safety Manager System, 1952
Regulations for Boiler Engineer and Crane Operator 1952
Ordinance onBoiler and Pressure Vessel 1959
Ordinance on Prevention of Disorder with Ionizing Radiation 1959
Ordinance on Designation of Production-Prohibited Harmful Substances 1959
Ordinance on Prevention of Organic Solvent Poisoning, 1960
Ordinance on Prevention of High Pressure Disorder 1961
Ordinance on Crane Safety 1962
Ordinance on Prevention of Lead Poisoning 1967
Ordinance on Gondola Safety 1969
Regulation for Prevention of Electrical Accident 1969
Regulation for Prevention of Mechanical Accident 1970
Ordinance on Prevention of Disorder with Specific Chemical Substances 1971
Ordinance on Prevention of Oxygen Deficiency Disease 1971
Ordinance on Industrial Hygiene in Office 1971
2) Publication of Labour Accident Prevention Plan
As the Japanese economy developed, labour accidents drastically increased in number. To improve the situation
in 1958 the government formulated the first five-year plan for labour accident prevention. Since then the labour
accident prevention plan has been updated every five years, resulting in significant achievements. The plan
stipulates the actions to be taken by the government, businesses, and related associations. During the
development of the plan the labour policy council consulted these three parties. Hence the plan is not only a
plan of the government but is also endorsed by labour and management. This approach gives all parties a sense
of ownership and makes implementation more effective. The 13th labour accident prevention plan was
circulated in April 2018.
3) Establishment of Pneumoconiosis Act and Labour Accident Prevention Association Act
Besides the Labour Standards Act, two other important laws that were passed in relation to industrial safety
and health were the Pneumoconiosis Act (1960) and the Labour Accident Prevention Association Act (1964).
The Pneumoconiosis Act stipulated the health controls and compensation required for dust workers who
contracted pneumoconiosis, inclusive of silicosis. The Act continues to apply to date, but with amendments.
The second law was the Labour Accident Prevention Association Act. This was aimed at establishing the
associations set up to support management in their voluntary efforts towards labour accident prevention, and
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to provide a legal basis for the labour accident prevention plan. Although the act remains in force today, much
of the provisions on the labour accident prevention plan have been transferred into the Industrial Safety and
Health Act.
4) History of Government Organization
(1) Establishment of Labour Ministry
The Labour Ministry was separated from the Health and Welfare Ministry on 1 September 1947. This ministry
was to deal with labour issues which were considered fundamental to the democratization of Japan after the
Second World War. At the same time the Labour Standards Bureau was set up under the Labour Ministry. The
bureau in turn established the Safety and the Health Department (renamed as the Industrial Health Department
a year after) to administer industrial safety and health affairs. In addition, a local labour standards bureau and
a labour standards inspection office (currently there are 334) was established in each prefecture.
(2) Enhancement of Government Organization
To deal with rapidly increasing labour accidents since 1960, a section for labour accident prevention was set
up in the Labour Standards Bureau in 1965. In 1967 this section was upgraded to the “Safety and Health
Agency.” However, in 1968 during the first administrative reform of the government since World War 2, it was
renamed “Safety and Health Section” in the Labour Standards Bureau. To date the section continues to manage
industrial safety and health.
5) Private Sector Activities
(1) From Industrial Welfare Association to National Industrial Safety Joint Association and National
Industrial Heath Association
While Japan was embroiled in war, the Industrial Welfare Association was integrated into the Great Japan
Industrial Patriotic Society. The Association restarted as the “Industrial Labour Welfare Association” in March
1946, a year after the end of the war. In addition, an Industrial Safety Association was established in September
1946. At the same time, several other private safety and health associations were also formed at the local level.
Thus, the momentum gathered towards the establishment of a National Safety and Health Association in 1953.
Although its activities included industrial health, the Association focused on prevention of labour accidents.
The National Industrial Health Week was first held in 1950 and over time it became a national event on
industrial health. In the meanwhile, activities for industrial health in the private sector gradually became
widespread. The health manager system that was introduced in 1947 resulted in health managers being
appointed to business sites across the nation. They were organized at the prefecture level, then in geographical
blocks, and eventually for the whole nation. With this development in the background, the National Industrial
Health Association was set up in December 1959, and this meant the emergence of a full-fledged national
association aiming to promote industrial health.
The functions of both National Industrial Safety Joint Association and National Industrial Health Association
were subsequently taken over by the Japan Industrial Safety and Health Association in 1964.
(2) Establishment of Japan Industrial Safety and Health Association and of Labour Accident Prevention
Associations for certain types of industry
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As labour accident prevention activities in the private sector gradually became more widespread, the safety
and health levels in business sites improved gradually. At the same time, with rapid economic growth, industrial
activities expanded, and technology innovation changed beyond expectations. Under such circumstances,
labour accidents stayed at a very high level despite the concerted efforts of all parties. This situation led to the
recognition that management themselves would have to take the initiative and improve the level of industrial
safety and health at their workplace because supervision and instructions from the government has limitations.
Thus, it was necessary to enhance the functions of both National Industrial Safety Joint Association and
National Industrial Heath Association, They had been operating as private associations for labour accident
prevention, but now it required the backing of the law.
Thus, the Labour Accident Prevention Association Act was enacted in 1964. In August 1964 the Japan
Industrial Safety and Health Association and Labour Accident Prevention Association were established for
each of five key industries, namely construction, land-based cargo handling, port cargo handling, forestry, and
mining (although the Mining Labour Accident Prevention Association was subsequently dissolved in March
2014.)
6) Momentum toward Establishment of Industrial Safety and Health Act
(1) Frequent Occurrence of Labour Accidents and Growing Public Demand for Prevention Measures
The Japanese economy had rapidly grown on the basis of technology innovation since 1955. This included
technology innovation advancing in every area, new raw materials, new manufacturing processes and new
equipment. As a result, it caused increasing labour accidents and new occupational diseases. The worst record
was in 1961 when there were 6,712 fatalities and nearly 500,000 victims, with eight or more lost days (see
Figure 1). Thus, labour accidents became an urgent concern, and safety and health measures had to be given
greater attention. The focus was centered on prevention of labour accidents, especially explosions, fire, and
injuries.
(2) Establishment of Industrial Safety and Health Act
The Labor Standards Act 1947 was an epoch-making Act as it was concerned with labour protection inclusive
of industrial safety and health. But many conflicts arose later between the regulations and the changes in social
demands due to the recast industrial structure that accompanied the expansion of economic activities. Thus, a
separate Industrial Safety and Health Act was established in 1972.
This Act was to operate in conjunction with the Labour Standards Act, which stipulated the minimum standards
of working conditions for a secure safety and health environment for labour. It also promoted the regulations
for a comfortable working environment by advancing comprehensive and well-planned measures that
included:
⚫ Clarification of the responsibility structure for the safety and health management in business sites
⚫ Establishment of standards for prevention of harm
⚫ Promotion of the business management’s voluntary activity for safety and health
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3.2.3. From Enactment of Industrial Safety and Health Act (1972) to End of Showa Era (1989)
1) Clarification of Business Management’s Responsibility on Industrial Safety and Health Act
When the Industrial Safety and Health Act came into force, previous ordinances under the Labour Standards
Act were abolished. Under the Labour Standards Act the employer was designated as the main party
responsible for the prevention of labour accidents; however, the Industrial Safety and Health Act extended this
responsibility to management. It clarified that management was responsible for the prevention of labour
accidents. It further stated that management was responsible for controlling contractors in the prevention of
labour accidents at construction and ship-building sites that operated on multi-level contracts. It can be said
that these regulations emphasized to management that their responsibility for safety was a major factor
preventing accidents. It is evident from Figure 1 that fatalities by labour accident decreased within 5 years,
from 5,631 in 1972 to 3,302 in 1977 (decreased by 2,329)
2) Enhancement of Measures for Lifestyle-Related Diseases in General Medical Examination
Previously, during the compulsory medical examination of workers, the main examination was for tuberculosis.
After the Industrial Safety and Health Act was enacted, the examination items were extended to include
lifestyle-related diseases. Later, in 1988 and 1989, further examination items were added.
3) Enhancement of Safety and Health Training
Provision of training was considered an important pillar in the Industrial Safety and Health Act. In chapter 6
of the Act management has the obligation to provide safety and health training to workers. For effective
implementation of this requirement, the Act also stipulated that the government was to provide the support via
Figure 3.6 Occupational Accidents in Japan
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training of facilitators, improving on their qualifications, development and promotion of training methods,
supply of relevant training materials and enhancement of training facilities. Thus, the Act helped to advance
the training for safety and health.
(1) Safety and Health Training Promotion Plan
The Labor Ministry promoted the training systematically by developing the first Safety and Health Training
Promotion Plan in 1971. This was done even before the enactment of the Industrial Safety and Health Act. The
plan laid out the way for basic training. However, upon the enactment of the Industrial Safety and Health Act,
the Ministry formally set up an Outline of Safety and Health Training Promotion in April 1974 to further
enhance the method of training. It did so by introducing an appropriate structure for the training and clarifying
the roles of the government, associations, and companies. This outline remains effective today, though with
some revisions.
(2) Inauguration of Safety and Health Training Center
The Labor Ministry inaugurated the Tokyo Safety and Health Training Center at Kiyose, Tokyo, in 1973 and
the Osaka Safety and Health Training Center in 1978. Both centers were to be operated by the Japan Industrial
Safety and Health Association. They were given the task of providing the training for leaders in companies for
a fee. This was done through their main program called “Trainer Providing Safety and Health Training for Site
Supervisors” for the Labour Ministry. Both centers also provide training to instructors and experts to meet the
requirements of the Industrial Safety and Health Act. These include foreman training (article 60 in the act),
employment training, training at job change, special training for workers involved in hazardous or harmful
jobs, and the like. Regulatory training programs at the centers comprise 90%, while the remaining 10% of all
the programs are voluntary ones. About 130,000 participants in Tokyo (as of March 2017) and about 102,000
people in Osaka (as of March 2010) have completed various programs at these centers. These graduates in turn
have implemented grass-root training and played active leadership roles to promote the safety and health in
companies across the nation.
In addition, the Labour Ministry established the Construction Safety and Health Training Center to train
supervisors in the construction industry and entrusted its operations to the Construction Accident Prevention
Association.
It can be seen that these training centers have admirably fulfilled their role in promoting worker safety and
health.
4) Establishment of University of Occupational and Environmental Health
Furthermore, upon enactment of the Industrial Safety and Health Act, physicians who were previously called
“health managers”, were renamed “occupational physicians”. These physicians were given the task of
implementing health control at business sites. However, a health manager under the Labour Standards Act was
required to receive directives from the employer, but an occupational physician under the Industrial Safety and
Health Act stands on equal footing with the management with regards to health control of workers. As such
the authority of an occupational physician was strengthened but came with greater responsibility. To meet that
heightened responsibility in 1978 the University of Occupational and Environmental Health was specially
established as an educational and research institute to promote and train occupational physicians. Funds from
the Occupational Medical Science Promotion Foundation (a special account of the Workers’ Accident
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Insurance) were allotted yearly to meet the major operating costs of the university.
The university has since turned out many physicians specializing in occupational medicine. They have played
active roles in research and also acted as contract occupational physicians for many companies, contributing
to the occupational physician system as envisioned by the Industrial Safety and Health Act.
5) Establishment of System of Industrial Safety Consultants and Industrial Health Consultants
Companies, especially small-to-medium-sized ones, often lack technical as well as financial capabilities to
take safety and health protection measures on their own. These companies, when faced with various safety
and health problems, need external expert knowledge and experience and to take advice from them. To meet
this need adequately, the Industrial Safety and Health Act also stipulated the establishment of an Industrial
Safety and Health Consultant system. Today over 10,000 consultants are registered in the system.
6) Promotion of Measures to Maintain and Enhance Workers’ Health
As workers age, diseases found increasing were hypertension, hyperlipidaemia, and diabetes. To reduce the
occurrence of such diseases, it was necessary to foster healthy lifestyles. Thus, guidelines on measures to
maintain and enhance workers’ health in business sites were published as an amendment to the Industrial Safety
and Health Act in May 1988.
The guidelines set out principal measures such as the formulation of a plan, establishment of a promotional
organization, use of service agencies (for small-to-medium-sized companies which may have difficulties in
taking the said measures at their business sites), and the details of measures (e.g. health check, sports guidance,
mental health care, nutritional guidance, health guidance).
7) Measures against Chemical Substances and Establishment of the Chemical Substance Assessment
Department
Injury prevention was the focus until around 1970. Since then, as pollution problems escalated and with more
awareness on health, greater attention is given to health issues. Among these, one serious problem is poisoning
by chemical substances that could result in occupational cancer. To meet this social expectation, a system to
assess the chemical substances’ harmful effects was introduced through an amendment to the Industrial Safety
and Health Act in 1977.
As a result, the Labour Standards Bureau of the Labour Ministry set up the Chemical Substance Assessment
Department. It was subsequently renamed the “Department of Measures against Chemical Substances”, and
continues to exist under that name today.
8) Establishment of Private Labour Accident Prevention Associations
Besides the labour accident prevention associations formed under the law such as the Japan Industrial Safety
and Health Association (JISHA), there are many private associations working on labour accident prevention.
Many of them were established in the period 1965 to 1980. Associations of note in the private sector are listed
below:
- Japan Boiler Association (1934)
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- Japan Crane Association (1968)
- National Federation of Industrial Health Organization (1971)
- Safety and Health Technical Test Association (1976)
- Safety Association of Construction and Loading Vehicles (1978)
- Japan Association for Working Environment Measurement (1978)
- National Registered Training Agencies Association (1980)
3.2.4. From 1989 to Present
The Heisei Era that started in 1989 with an economic boom (The “Bubble economy”) had petered out in 1990,
and Japan headed for a serious depression. Companies were pressed to change from the traditional Japanese
style of management system that was characterized by the seniority system and lifetime employment. These
changes were reflected in the industrial safety and health domain too.
1) Response to Changes of Social Structure and Employment Structure
Changes in labour practices were due to aging, increasing numbers of female workers and technological
innovation. For instance, heavy muscle work which used to be synonymous with tough work became less
prominent as the workplace became more automated through the introduction of equipment such as cranes and
forklifts.
Instead, stress at the workplace increased, especially in visual display terminals (VDT) and monitoring jobs.
Measures against stress and mental health became the next important task in the industrial safety and health
area. As a result, the Ministry of Health, Labor and Welfare produced guidelines on jobs at VDT and mental
health.
2) Building Comfortable Workplaces
Another important issue was for companies to create a positive work environment so that workers experience
less fatigue and stress. As such guidelines on measures for creating comfortable work environments were
publicized as an amendment to the Industrial Safety and Health Act in 1992.
3) Measures to Prevent Passive Smoking
Included in the above guidelines on comfortable work environment were guidelines banning smoking at the
workplace.
Under an amendment of the Industrial Safety and Health Act in 2014, these measures were later revised to
focus on the prevention of health disorders rather than fostering a comfortable workplace.
4) Carrying over Safety and Health Technology to the Expanding Next Generation Having Little Experience
with Disaster
As older workers retire, the safety and health management experience derived from first hand experience with
disasters could not be easily passed to the new generation. Attention was now focused on how to increase
awareness of accident prevention among younger workers, many of whom had no experience of disasters. One
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of the techniques used was to stimulate danger during training.
5) Enhancement of Voluntary Safety and Health Management
The Labor Ministry introduced the Occupational Safety and Health Management System (OSHMS) in 1999
as a tool to boost the level of safety and health in a non-conventional way.
In April. 2006 an amendment to the Industrial Safety and Health Act required management to conduct risk
assessment at the workplace. Furthermore, from June 2017 onwards, management was obligated to assess the
risk of certain chemical substances used at the workplace. These assessments are aimed at helping management
identify and reduce existing risks in business premises.
6) Establishment of Ministry of Health, Labour and Welfare
In January 2001, the Labour Ministry and the Ministry of Health and Welfare were again merged to become
the Ministry of Health, Labour and Welfare during an administrative reform of the government. However, the
administration of industrial safety and health was unchanged.
7) Private Sector Activities
(1) Activities by Labour Accident Prevention Associations
Positive activities by the private labour accident prevention associations mentioned in section 3.8 as well as
the activities of Japan Industrial Safety and Health Association and the Labour Accident Prevention
Associations for five key industries are still ongoing.
(2) Public and Private Committee for Safety Measures in Manufacturing Industry
The Public and Private Committee for Safety Measures in Manufacturing Industry was established in March
2017 and is led by the Japan Industrial Safety and Health Association. The committee comprises all the national
associations of major manufacturing businesses, the Ministry of Health, Labour and Welfare, and the Ministry
of Economy, Trade and Industry.
This committee has groups from public and private sectors working jointly with management to analyze and
share safety awareness to deal with the changing business environments, improve existing measures, and
promote the newly formulated measures to all manufacturing businesses.
(3) Cooperative Promotion of Labour Accident Prevention Measures with Business Management
Management’s support in preventing labour accidents is very strong. For example, the presidents’ new-year
message to general contractors often states that safety is fundamental to management. The reasons for their
cooperation are:
Voluntary activities by the management are considered to be a main pillar in the Industrial Safety and
Health Act.
Management’s obligation to care about workers’ safety has been stipulated in the Labour Contracts
Act.
A court decision requiring a company to pay a hefty compensation for breach of this obligation.
Construction companies with frequent accidents occurring in their sites are banned from bidding for
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public works contracts.
(4) Voluntary Safety and Health Activities in Companies
In addition, private companies themselves have introduced effective safety activities at the grassroots level,
including a housekeeping technique or 5S in Japanese (referring to organize, arrange, clear, clean, and
discipline), hazard prediction technique training or KYT in Japanese, and a “near-miss” reporting system.
8) Activities by Labour Unions
(1) Confederation Guidelines on Efforts into Industrial Safety and Health
Following the government’s 12th labour accident prevention plan, the Japanese Trade Union Confederation,
national labour union in Japan, developed a set of confederation guidelines on industrial safety and health
(2013 – 2017). These guidelines not only cover prevention of industrial accidents, but also enhancement of
measures on mental health (e.g. for power harassment, sexual harassment, stress check, and suicide prevention),
and review of long working-hours. Labour union members as well as the organizations have responded well
to these guidelines. So, when the government publishes its 13th labour accident prevention plan in April 2018,
the confederation will then revise their policy accordingly.
(2) Activities by Japan International Labour Foundation
The Japan International Labour Foundation established under the Japanese Trade Union Confederation in 1989
has been promoting an understanding of labour issues such as industrial safety and health to its constituting
members, related government ministries and agencies, the International Trade Union Confederation
(ITUC)and other overseas labour unions, especially from developing countries in Asia.
The Foundation aims to help labour unions from developing countries form democratic and voluntary labour
unions and at the same time co-operate with management so that these countries can enjoy sound economic
development. These goals are fulfilled by providing training opportunities and supporting local activities for
training and development.
3.2.5. International Relations
1) International Cooperation in Industrial Safety and Health
For international cooperation in industrial safety and health, technical support and funding have been given to
the International Labour Organization as well as capacity building of human resources and accepting
participants under the Japan International Cooperation Agency.
2) Relationship with International Labour Organization (ILO)
Japan has been sending government officers, labour, and management representatives to various international
conferences. Since Japan is a permanent council member of ILO, Japan has attended the Congress, Board
meetings, and Special Committees in ILO.
Japan has also ratified major ILO conventions on industrial safety and health, including the Radiation
Protection Convention (1960), The Guarding of Machinery Convention (1963), The Occupational Cancer
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Convention (1974), The Hygiene (Commerce And Offices) Convention (1964), The Asbestos Convention
(1986), And The Promotional Framework For Occupational Safety And Health Convention (2006). The
minimum standards under these conventions have been included in domestic laws and regulations.
3.2.6. Future Tasks
As the rate of decrease in labour accidents levels off, government, labour, and management need to jointly
intensify their efforts to achieve better results. For instance, the application rate for OSHMS is at a low level
of 7%, and the chemical-substance risk assessment is still at the stage where companies need guidance on
which method they should use. Government support is desired so that these programs may be further promoted.
3.3. Preparation of Training Materials
Three training materials are prepared for the Third Country Training Programme (TCTP) on OSH conducted
jointly by DOSH and JICA. Those materials are an “Automated PowerPoint introducing histories of OSH in
Malaysia and Japan”, “Facilitator’s Guide”, and “Handout for the participants”
The training materials are aimed at encouraging the participants to:
1) Have a basic understanding on the importance of OSH in development and major roles of the government
and the companies in OSH
2) Gain lessons for the approach to OSH in their countries, from Malaysian and Japanese experience of long-
term and continuous OSH efforts
3) Exchange among themselves based on the lessons above
4) Delineate outlines of the action plans which they are supposed to work out in the TCTP
Target participants are supposed to be from Cambodia, Lao PDR, Myanmar and Vietnam.
A main part of the TCTP should not be lectures but discussions by the participants. For this purpose, facilitators
are expected to raise questions to the participants and encourage them to find answers by themselves. They
should not let the participants to talk only but discuss with a conscious goal. A recommendation in this
connection is to let them discuss bearing in mind the action plans to be worked out toward the end of the
training course. Some of the possible questions would be:
Changing Background of OSH
Have there been major changes in the background of OSH of your country in the past 10 years or so?
Example answers:
- Industrial expansion
- Inflow of foreign investments
- Infrastructure development
- Growing public concerns about OSH
- Reinforced government policy for OSH
Did the changes bring about any positive or negative impact on OSH?
If yes, how?
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How do you think about a possibility to minimize the negative impact?
How do you think about a possibility to maximize the positive impact?
How did the government and public opinion react to the impact?
Capacities for OSH Management
What are priority issues for strengthening/improving OSH management capacity in your country?
Example answers:
- Creating/coordinating/integrating relevant government departments
- Strengthening legislation
- Strengthening enforcement of the legislation
- Strengthening human resources for OSH
- Promoting awareness raising activities
- Upgrade technological level of OSH
- Facilitating government-private and management-workers dialogues
Why such priorities are given in your country?
Approaches to the Priority Issues
How would you sort out the respective priority issues?
Example answers:
- Work on politicians and senior government officials
- Encourage private initiative
- Make use of NGOs and academics
- Learn from foreign experiences
You can think of alternative approach or a combination of different approaches.
In this connection, could you think of any success example in your country?
Quick impact activities
Many of these approaches take time to put into practice. You may need some quick impact activities so that
you can make some small changes without waiting for time consuming fundamental solutions. Such changes
may pave the way for another small changes. Can you think of any quick impact activities that may be useful
to ongoing situation in your country?
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Example answers:
- Promotion of low cost methods of work improvements for OSH and risk assessment by workers
- Raising awareness of top management
- Sample survey and analysis on the cause of occupational accidents
- Consultation with SMEs
- Training abroad on specific OSH-related technologies through ODA
A series of these questions are expected to suggest a number of salient points for the discussion such as:
1) Intensification and diversification of OSH issues in association with industrialization and urbanization
2) Role of the government in managing OSH; planning and enforcing laws and regulations, training and
awareness building for the employers and employees
3) Issues for self-regulations
4) Institutional support for self-regulation
5) OSH of the SMEs
An example of two-hour session would be as follows:
Introduction (5 min.) with a high light on why histories in TCTP
Slideshow on the histories of OSH in Malaysia and Japan (15 min.)
Discussions based on the slideshow with special reference to its last 2pages; LESSON
and/or A DISCUSSION FRAMEWORK BASED ON LESSONS LEARNT (10 min.):
Why OSH?
Role of government in OSH
Institutional support for self- regulation
OSH for SMEs
Group session:
Introduction to country-specific discussions (10 min.):
Changing Background of OSH
Capacities for OSH management
Approach to the priority issues
Quick impact activities
Group discussions (20 min.)
Summarizing group discussions (5 min.)
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Plenary session
Presentation of discussions by four groups (20 min).
Discussant’ comments based on the presentation of group discussions (30 min.)
Wrap up by the facilitators (5 min.)
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4. Productivity
4.1. History of Productivity Development
1) Malaysia
Regarding the history of productivity development in Malaysia, the Malaysian government led industrial
human resource development for facilitating quality and productivity development. Multinational corporations
took on important roles as well.
The Malaysian industrialisation started in 1960. The National Productivity Council (NPC), which had taken
the main role in productivity development, was established in 1962 as a joint-project of United Nation’s special
fund and the Malaysian government. NPC became an autonomous organization through the National
Productivity Council (Incorporation) Act No.19 in 1966. This organization later became the Malaysia
Productivity Corporation (MPC).
International Labour Organisation (ILO), as the executing agency of the project, dispatched experts from
various countries.
Initially, NPC was focused on fostering facilitators for industrial human resource development, and worked on
4 areas of marketing, leadership, productivity, and training of facilitators. In other words, NPS was the
organization for training of facilitators for industrial human resource development and productivity was one
of their topics. NPC invited many experts from Austria, Germany, Japan etc. NPC staff received technical
transfers from those experts as well as working together for preparing training materials and providing trainings
to industries. NPC also held a commercial hotel where they provided grading-up trainings for hotel and
restaurants workers and new-graduates.
NPC believed quality and productivity development was a prerequisite for developing internationally
competitive industries and attracting Foreign Direct Investment (FDI). Thus, NPC tried to provide trainings
related to quality and productivity to capitalists and corporate owners. However, those people were not aware
of the importance of quality and productivity. They believed they could increase in number of workers if they
wanted to have larger production volume. After a few years, NPC changed its strategy direction and
emphasized quality (instead of productivity) since quality was visibly compared to productivity.
To expanded trainings to companies, NPC established the Malaysian Association of Productivity (MAP) in
1969. Those companies that paid membership fees could attend trainings and seminars provided by MAP. By
establishing MAP, NPC increased training opportunities by inviting domestic or international experts. At the
same time, NPC could train their own staff by using those opportunities.
In 1970, New Economic Policy (NEP), which was a 20-year long term economic development plan, was
formulated. The biggest change of the policy was a change from domestic focus on industrialisation to export-
oriented industrialisation. At that time, a limited number of institutions and universities provided trainings for
industrial human resource development. NPC took the main role in industrial human resource development.
In 1983, Prime Minister Mahathir formulated LEP. The policy was that of learning from experiences (including
work ethics) of Eastern countries like Japan and Korea. Under the policy, the government worked for long-
term industrial human resource development and short-term technical trainings.
JICA provided US$ 7.7 million grant aid for language learning centres for preparatory course before studying
34
in Japan. The Japanese government dispatched teachers of Japanese language, mathematics, chemistry, Physics,
etc. to this preparatory course in the University of Malaysia. JICA also provided a grant aid to Universiti
Teknologi MARA for Japanese language education.
In this area of long-term industrial human resource development program, more than 3,000 students learned
in Japanese engineering higher educations between 1984 and 2009 by the Malaysian governmental fund.
Regarding short-term technical training, engineers worked on the sites sent for Japan for working at Japanese
companies’ factories. For this training, the Malaysian government paid air tickets and accommodation costs,
and found Japanese companies which would accept Malaysian participants. These participants studied the
Japanese language for six months in Malaysia before coming to Japan. They attended a three-week training on
Japanese culture and Japanese working culture first, and then joined in factory sites of Japanese companies for
6 months. JICA and Association of Overseas Technical Scholarship (AOTS, current The Association for
Overseas Technical Cooperation and Sustainable Partnerships: AOTS) were the organisations which received
participants and provided the initial trainings in Japan. AOTS only accepted 1,152 people between 1982 and
1997. This implies that a certain number of people came to Japan for technical trainings.
Source: AOTS
Figure 4.1 LEP participants in a Japanese Company
Also, in 1983, Malaysia joined in the Asian Productivity Organization (APO) as NPC as the focal point. After
joining the APO, many Malaysians were sent for short/medium-term trainings in other APO member countries.
The number of the Malaysian APO participants coming to Japan was 567 people between 1992 and 2017
though unfortunately data before 1992 was missing. Those participants were accepted by Japan Productivity
Center (JPC), AOTS, etc.
In addition to the above, the National Car Project known as Proton Project, which was initiated by the Prime
Minister Mahathir, was started in this age. Proton was established as a joint venture between a Malaysian
company and Mitsubishi Motors. Suppliers, which consisted of Japanese subsidiaries and Malaysian
companies with technical cooperation to Japanese companies, introduced ideology and techniques of Japanese
style quality and productivity development represented as the word “Kaizen” into Malaysia. A worker of those
Japanese subsidiary told us that they were reluctant to join in the Quality Control Circle (QCC) activity for the
first time. However, because they noticed real changes and achievements from QCC, and the company
35
provided incentives to them, they came to understand the importance of QC activities and continued. Like
Japanese subsidiaries, other Multi-national corporations also introduced knowledge of quality and productivity
development into Malaysia. One of the most important points here was that those multi-national corporations
required high quality and productivity to their suppliers. The suppliers which made efforts to meet their
customers’ requirements increased their quality and productivity.
Human resource development activities in the Malaysian automotive industry was implemented also through
the Malaysia-Japan Automotive Industry Cooperation (MAJAICO) project. This five-year (2007-2011) project
was formulated based on Malaysia Japan Economic Partnership Agreement (JMEPA) agreed in 2006. Under
this project, dispatches of Japanese experts to Malaysian companies and technical trainings in Japan etc. were
implemented. AOTS and others dispatched Japanese experts and accepted participants to Japan.
Those experts’ dispatches and trainings were implemented by various organization. Looking at AOTS as a
sample, AOTS received total 11,005 people (including LEP and MAJAICO), provided trainings to 14,166
people in Malaysia, and dispatched 736 experts to Malaysia between 1959 and 2016. Although those figures
included not only activities related to productivity but others, those activities may have taken great roles in
terms of introducing Japanese style quality and productivity development into Malaysia.
In 1990, National Development Policy (NDP) replaced to NEP. NDP declared that Malaysia would become an
advanced country by 2020. Following this policy change, National Productivity Council was transferred to
National Productivity Corporation. In that age, NPC shifted to researches from trainings for disseminating
quality and productivity ideology widely.
As shown above, the Malaysian government had made various efforts to industrial human resource
development, fostering site engineers, and quality & productivity development. However, SME owners still
were not clearly aware of the importance of quality & productivity development and necessity of human
resource development. Those owners preferred to invest in facility and/or machinery rather than workers.
Considering those situation, the Malaysian government established the Human Resources Development Fund
(HRDF) in 1993. All companies need to pay a human resource development levy to the fund regulated by a
special act (PSMB Act of 2001). A company could request a refund after they provided trainings to their
workers. HRDF refunded the money to each company based on activities the companies provided to workers.
The Government hopes this mechanism would encourage investments in human resources in firms. Although
many SMEs have used this mechanism and got refunds, impact to whole industries remains to be seen.
NPC was corporatized in 2008 and became Malaysia Productivity Corporation (MPC). Now, MPC focuses on
benchmarking, industrial competitiveness and institutional reviews.
In summary in Malaysia, under the government-led industrialisation, NPC (current MPC) was established and
took a leading role in fostering facilitators for industries. As an effect, foreign companies came to invest in
Malaysia. Those foreign companies brought knowledge and techniques of quality and productivity
development in Malaysia. Also, people dispatched to and learned in Japan by the Malaysian government
expenses took an important role for industrialisation of the country.
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2) Japan
The productivity development in Japan was led by the private sector.
Japanese quality and productivity development started after the World War II. At that age, Japanese companies
mainly produced cheap copy products. There were many conflicts between employers and workers about cheap
wages, poor working conditions, and so forth.
Some industrial leaders came to realise that they needed to produce products with higher quality and
competitive prices for competing in the global market. Those leaders visited European and American countries
to learn “productivity movement” and scientific management. This is the big turning point of Japanese quality
and productivity development.
Based on their acquired knowledge, those industrial leaders established two private non-profitable
organizations in cooperation with the government and academic sector: The Union of Japanese Scientists and
Engineers (JUSE) and JPC. Those two organizations took important roles for quality and productivity
development and industrial human resource development in Japan.
JUSE was established in 1946 and was consolidated in 1962 under the jurisdiction of the Science and
Technology Agency (now, Ministry of Education, Culture, Sports, Science and Technology). JUSE introduced
Statistical Quality Control (SQC) to Japan by inviting Dr Deming for seminars in 1950. JUSE established
Deming Prize for companies/ products with high quality in 1951.
In 1950, although SQC was introduced, the quality development activity remained to the situation of “qualities
were guaranteed by inspections at the end of the manufacturing process”.
Figure 4.2 Labour movement in Japan after WW Ⅱ
Source: JUSE
Figure 4.3 Dr. Deming (right in the left picture) and Deming prise (right)
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Another important organization, JPC was established in 1955. JPC is also a non-profit organization supported
by private companies, trade unions, and academics. At that age, some people believed that “productivity
development will lead to unemployment and exploitation by capitalists.” To avoid misunderstandings, JPC
first established the three “Guiding Principles of Productivity Movement”:
- In the long run, improvement in productivity will increase employment;
- Labour and management must cooperate; and
- The fruits of improved productivity must be distributed fairly among management, labour, and the
consumer.
As explained above, although important organizations for quality and productivity development were
established in 1950s, not many people were well aware of the importance of quality and productivity. Both
JUSE and JPC had a hard time to get support from trade unions. The strategy which those organizations took
was providing trainings and advocations both to employers and workers. By teaching the importance of quality
and productivity to both sides, they expected that both employers and workers would understand quality and
productivity led to competitiveness of their company, and thus to prosperity and welfare of workers. In this
sense, cooperative employer-worker relationship in Japan was not derived from Japanese culture but was
created and fostered by industrial leaders.
One of the fundamental factors of quality and productivity development, the Quality Control Circle (QCC)
was developed by Dr. Ishikawa in 1962. He considered it was necessary to involve and cooperate with workers
for solving problems and improving quality and productivity. However, QCC was not easily accepted by
workers. The workers did not find necessity of QCC. Toyota group was one of the first examples to succeed
in introducing and stabilising QCC activities. Those companies in Toyota group established mechanisms to
monitor and provide incentives to QCC. This mechanism was considered a key for QCC installation.
In 1970, people realized that high quality and productivity could not be achieved only by improvements at the
production product lines. Those people started incorporating other sections of the company such as R&D,
product design, sales, and so forth. The idea of Total Quality Control (TQC) was developed. Quality was
considered as a fruit of interrelated activities of various sections of a company and of external factors like
suppliers and customers.
A historical turning point in quality and productivity development appeared in 1980. NBC, an American TV
station, created a TV documentary program on Japanese high-quality products. This program increased
concerns with Japanese quality and productivity management system. Many large foreign companies visited
Japanese companies for inspections. Some joint ventures with Japanese companies were established. The ideas
of Japanese quality and productivity development activities like Kaizen, 5S, TQC, etc. became largely known
to the world.
Talking about the word Kaizen, the word was well-known by the publish of a book “Kaizen-The Key to Japan’s
Competitive Success” written by Masaaki Imai in 1986. However, the origin of the Kaizen was not clear. If
we consider origin of the Kaizen was back to the point when PDCA cycle was introduced, we could trace its
origin back to the age of Dr. Demming’s SQC. If we consider an essential factor of Kaizen were group activity,
the origin would be the starting point of QCC. Only one thing we are sure is that the book written by Mr. Imai
introduced the word Kaizen wider in the world.
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In 1987, Malcolm Baldrige National Quality Award was established in USA. This award considers various
factors like leadership, strategy, customer, information, human resource development etc. in addition to quality.
At that age, western countries start using the word “quality management” instead of “quality control.” This
was considered because of the word “control” implies “forcing people do as told.” Following this change, in
1996, JUSE also change their terminology from TQC to Total Quality Management (TQM). JUSE’s
terminology TQC already had included factors which Malcolm Baldrige visibly included at that time. Thus,
this is mainly a change in wording. After that, TQM became a mainstream for quality and productivity
development.
In summary, in Japan, organizations which were established by private sector’s people like JUSE and JPC took
important roles in Japanese quality and productivity development history. People who were trained by those
organizations went back to their companies and became a basis for quality and productivity development.
Each company has independently evolved their quality and productivity development activities and then
reached to the original system like Toyota Production System.
3) Now and the Future
Quality and productivity development is a critical factor for economic development. There is no end for
pursuing them. Industry 4.0 or IOT (Internet of Things) surely would impact to quality and productivity. It is
however human factor could not be ignored and thus we need to consider human resource development.
In addition, quality and productivity are important in terms of environmental protection and effective usage of
limited resources in the earth.
4.2. Preparation of Training Materials
Three training materials are prepared for the introductory session of the Third Country Training Programme
(TCTP) on Productivity conducted jointly by Malaysia Productivity Corporation (MPC) and Japan
International Cooperation Agency(JICA). Those materials are an “Automated PowerPoint introducing
histories of productivity development in Malaysia and Japan”, “Facilitator’s Guide”, and “Handout for
participants.” Main ideas behinds those materials are as below.
1) Purpose of the new training materials
The ultimate purpose of a training material is to help maximising effectiveness of a training. It is significantly
important to motivate and capture their interests for the coming training sessions.
It is better to transform a frequently expressed negative feeling of “our economic and social conditions are far
different from Malaysia and Japan and it is difficult to catch up” to the positive one. In fact, Malaysia and
Japan also had a hard time like participants in the past.
The materials are designed 1) to give participants an impression of “there are the ways to overcome obstacles,”
and 2) to give tips for the issues which participants’ need to consider throughout the training. The main
purposes of the materials are:
- By sharing experiences of quality and productivity development in Malaysia and Japan;
- To make participants realise they are not the only country facing difficulties;
39
- To share our experiences of how we overcame obstacles; and
- To give some tips for considering factors in action plans.
2) Main target participants
- Governmental officers in charge of/in relation to quality and productivity development of a country
3) Key issues for the contents
Based on the considerations above, keys issues below are included in the materials.
- There have been long-time huge efforts of many people for quality and productivity development: No
country has achieved high quality and productivity in a day.
- There is no single approach for achieving high quality and productivity. People/ companies tried to
apply available methods/techniques to their social and economic conditions and developed suitable
approaches for their countries.
- Quality is a prerequisite for market competitions. Productivity development without quality does not
make sense.
- The countries that started industrialization later than other countries have an advantage of using the
latest knowledge and technologies from the start. Mobile phones’ network is a good example. A
county does not need to start from land-lines which require large installation and maintenance costs.
- High quality and productivity achieved by a company is limited. We need to involve various
stakeholders.
- Awareness of people on the importance of quality and productivity, especially of top management is
critical.
- Introduction of high technology is not the only way to improve quality and productivity. We also need
to consider human-factors. We can improve quality and productivity by training, educating, and
raising awareness of workers.
- High quality and productivity are not automatically achieved. Tradition and culture of a country have
less impact for quality and productivity than well-designed institutional mechanisms (such as
incentive system) in a company.
4.3. Discussion questions and possible points of discussion
Those described below are examples of the questions and the discussions expected to thereby be triggered.
There is no single correct answer for each of the questions raised here. What is really important is the choice
by the participants for their countries. Facilitators should encourage participants to make choice by themselves.
Answers may be different depending on their countries and nature of their work. Therefore, it is important to
understand that the questions and answers are shown below only as an example.
-
Q1. Current Problem: Please tell us, what is happening in your country in relation to quality and productivity
40
development.
A1. (Example)
Name of the country
Name of the organization in
charge of productivity development
Who is leading the movement for
productivity improvement
Challenges they face
Ideas for improvement
(including ideas appeared in PowerPoint)
Country A XX Productivity Authority
President · Low awareness of the industrial people
· Limited budget
· Send industrial leaders to foreign countries for benchmarking
· To create membership to earn money for expanding seminar opportunities
Country B Productivity Development Corporation
CEO
· Need to raise 50% of the total budget by themselves
· Difficulties in getting consulting clients
· Membership · Awareness
seminar · Free trial
consulting
Q2. Next step: What is your next goal as an organization? What is your next goal as a country?
A2. (Example factors for discussions)
- Publishing on productivity tools
- Preparation of training materials
- Establishment of a good cooperation with academic sector
- Hire more consultants
- Establishments of law and regulation
Q3. Predicable challenge: What kinds of challenge you expect to face for achieving your next goal in your
organization? What kinds of challenge you expect to face for achieving your next goal in your country?
A3. (Example factors for discussions)
- Political apathy
- Shortage in budget
- Job hopping of trained staff
- Changes in industrial policy
- Change in political administration (president, principal ministers, main political party, etc.)
Q4. For the future: What do you think you need to sustain productivity movement?
A4. (Example factors for discussions)
- Generating profits for future investment
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- Advocacy/ campaign for social awareness
- Trainings of managers
- Introduction of productivity in compulsory education
- Facilitator training
- Establishment of monitoring system
- Better treatments such as good salary, better work environment
- Appropriate incentive mechanisms like pay-raise, performance bonus, promotion, etc.
- Fair evaluation system
- Monitoring system
- Introduction of group activity
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Appendices
45
1. Training Materials for OSH
47
1.1 PowerPoint
Lessons from the Experience of Occupational Safety and Health in Malaysia and Japan:
Third Country Training Programme
49
50
51
52
53
54
55
57
1.2 Facilitator’s Guide
Facilitator’s Guide for the Initial Session of the Third Country Training Programme
on Occupational Safety and Health
59
Facilitator’s Guide for the Initial Session
of the Third Country Training Programme
on Occupational Safety and Health
Department of Occupational Safety
and Health (DOSH)
Japan International
Cooperation Agency (JICA)
June 2018
60
Facilitator’s Guide for the Initial Session
of the Third Country Training Programme on Occupational Safety and Health
Purpose of the Session: Let the participants to get insight into the importance of OSH in development and identify key factors for action for their respective home countries Target Participants: Government officials, mostly administrators and managers in Cambodia, Lao PDR, Myanmar and Vietnam. They are supposed to form country-specific groups for group discussion/presentation. Facilitator/Discussants: A facilitator from DOSH and a couple of discussants such as those from NIOSH and Master Builders Association of Malaysia. The discussants are desired to have a wide perspective based on long experiences in OSH practice; one from government and another from private. Venue: A meeting room that can accommodate about 20 participants to be seated in four groups in addition to the facilitator and a couple of the discussants Equipment: (For the slideshow) One Computer, One Projector, and One Speaker; (For the group session) Four laptop computers (Matrix 5.1-5.3 in the laptop without example answers) A Programme (120 minutes)
Introduction (5 min.) with a highlight on why histories in TCTP
Slideshow on the histories of OSH in Malaysia and Japan (15 min.)
Discussions with the participants based on the slideshow with special reference to its last 2 pages; LESSON and/or A DISCUSSION FRAMEWORK BASED ON LESSONS LEARNT (Exchange of opinions among all the participants only; No individual work) (10 min.):
Why OSH?
Role of government in OSH
Institutional support for self- regulation
OSH for SMEs
Group session:
Introduction to country-specific discussions (10 min.):
Changing background of OSH
Capacities for OSH management
Country-specific discussions (20 min.)
(1) Choose rapporteurs in respective groups.
(2) Refer to the questions on the handout for the participants.
(3) Exchange ideas and summarize them with the rapporteur’s laptop.
Summarizing country-specific discussions (5 min.)
Plenary session
Presentation of country-specific discussions by four groups (20 min).
Discussant’ comments based on the presentation by four groups (30 min.)
Wrap up by the facilitator (5 min.)
Note: Approach to the priority issues and Quick impact activities are discussed during the action plan preparation.
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1. Objectives
The initial session lets the participants have an overview of the development of OSH
from a long-term viewpoint. Using the experiences of Malaysia and Japan as a basis for
the training, the session is intended to let the participants:
- Think back about (1) an importance of OSH in development and (2) the
government-private cooperation in managing OSH
- Draw lessons from long-term process to overcome challenges on a
step-by-step basis,
- Exchange information and ideas based on their experiences, and
- Identify factors for the action plans which are relevant to their home countries
Overseas training sometimes gives the impression that the gap between the more
developed and less developed is too large to cross over. However, the more developed
countries were once less developed. They became “developed” because of their
continuous efforts to close the gap. Malaysia and Japan are no exception.
2. Target Participants
They are mostly Government officials involved in OSH, including those from Cambodia,
Lao PDR, Myanmar and Vietnam. They are administrators and managers working for
OSH at various levels. A considerable part of them are members of the organizations
which cover OSH, e.g. Ministry of Labour and Social Welfare.
3. Suggestions for Facilitating Session
This session is an introduction to the TCTP on OSH. The TCTP is supposed to cover a
wide range of OSH within a limited period of about two weeks. Therefore, the facilitator
is firstly expected to enable the participants to gain insights into core issues of OSH and
roles of the government in dealing with the issues. Secondly, the facilitator is expected
to let the participants think by themselves of possible approaches to the OSH in their
countries. This session does not aim at transferring specific/advanced knowledge from
one country to another. In this sense, facilitator is thus expected to promote the
exchange of information and ideas among themselves.
For these purposes, the facilitator should:
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(1) Throw questions at the participants
A stress should be given to get the participants involved in the session. Some
examples of the questions are in the “5. Questions and Discussions Keeping in Mind
a Country-specific Action Plan to be Prepared in This TCTP” of this guide. The facilitator
should wait for the participants’ response instead of answering their own question. This
process is more important than the answers themselves. The facilitator is not supposed
to try to confirm understanding of the participants on the Malaysian or Japanese
experiences but to encourage the participants to reflect on such experiences in the
context of their own countries. The facilitator can throw questions in group discussions
as well as plenary sessions.
(2) Promote the exchange of information and ideas among themselves.
This program incorporates the preparation of action plans at its end. The facilitator is
expected to encourage the participant to come up with some key concepts for the action
plans through the exchange of information and ideas among themselves. With this in
mind, lecturers are required to facilitate discussions such that participants not only learn
from the lecturers but also from one another given that the participants come from a rich
diversity of experiences and have working knowledge about the subject matter.
4. Important Points Emerging from Malaysian and Japanese Experiences
4.1 Industrialization and OSH
Industrialization together with urbanization was inevitably accompanied by the
increasing risks and accidents at the workplace, which brought about a great deal of
public attention to OSH. In early days, OSH was a part of the measures to operate and
maintain machines and equipment of mining and manufacturing sites. Later, OSH
became an important policy for protecting the workers’ rights and ensure a basis for
human resource development.
4.2 Role of Government in OSH
OSH can never be maintained without active participation by companies and workers
themselves. Equally, it is difficult for each company or worker alone. The government
plays a leading role in ensuring and supporting their efforts. Its first major role is to draft
the necessary legislation, enforce it and make the required institutional arrangements.
Its second role is to promote capacity and awareness of companies and workers on how
to manage OSH.
63
Both the Malaysian and Japanese government started with the first role, and later
tackled increasingly with the second.
4.3 Toward Self-regulation
Thus, self-regulation is the eventual goal for building capacity and awareness of
management and workers in practicing OSH at the workplace. This is achieved by
familiarizing companies and workers with relevant laws and regulations. Secondly,
Individual management and workers can better respond to changing technologies and
social needs for OSH.
4.4 Institutional Support for the Self-regulation
Government will continue to play an increasingly important role in maintaining the
institutional support for OSH, even though self-regulation for OSH by companies and
workers becomes more and more accepted in OSH. Institutions such as training,
awareness-raising among top management, information dissemination, safety and
hygiene standards, R&D, data management, setting ad implementing long-term master
plans, M&E, public-private dialogue and inter-departmental coordination will still be
required.
These institutional supports can also be extended by various social partners, such as
business groups, employers’ association, SME association, federation of trade unions,
mass-media, training institutions, universities and international development agencies.
However, the government will have the task to monitor and coordinate activities of these
organizations and promote information sharing.
4.5 OSH of SMEs and Local Enterprises
Both in Malaysia and Japan, SMEs suffer from higher risks of occupational accidents
and diseases than large enterprises OSH and productivity are complementary to each
other in long-term. However, they are often overlooked in the local enterprises and
SMEs in that many of them are under a strong pressure to minimize costs and effort. A
stress should be given to the low-cost OSH management system, which are financially
and technically affordable to the SMEs.
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5. Questions and Discussions Keeping in Mind a Country-specific Action Plan to
be Prepared in This TCTP
Questions and discussions comprise those at the following four steps:
(5.1) Review changing background of OSH in respective countries
(5.2) Assess present capacities for OSH management in respective countries
(5.3) Identify possible approach to the priority issues, based on the steps (5.1) and (5.2)
(5.4) Sort out quick impact activities, based on the step (5.3)
Of these, this session focuses the steps (5.1) and (5.2), while the steps (5.3) and (5.4)
can be covered in the process of action plan preparation under this TCTP.
The participants are expected to proceed and summarize group discussions in an
articulated manner as follows:
(1) Choose rapporteurs in respective groups.
(2) Exchange ideas to review changing background of OSH and summarize the ideas
with the rapporteur’s laptop.
(3) Exchange ideas to assess present capacities for OSH management and
summarize the ideas with rapporteur’s laptop
(4) Share the ideas compiled by the rapporteurs and come up with common
understandings on the changing background and present capacities of OSH.
(5) Based on the common understandings above, choose the priority issues which are
relevant to their countries and write out possible approaches and proposals for the
priority issues. Then, discuss their pros and cons, according to the List of Priority
Issues and Approaches shown in the last part of “5.3 Approaches to the Priority
Issues”
5.1 Changing Background of OSH (In relation to 4.1, 4.2)
Objective of questions:
(1) To have participants be further aware that social background decides how far and in
what ways the OSH actions can be taken and accepted.
65
(2) To have participants think about how to control/utilise the social background to cater
to better OSH system.
(3) To have participants think about in what ways the government can intervene in OSH
environment best and what is the advantage of government role.
Questions:
Have there been major changes in the background of OSH of your country in the
past 10 years or so?
Example answers:
*If the participants raise limited variety of answers, the facilitator may share others.
- Industrial expansion: requirement to improve productivity and human rights
- Inflow of foreign investments: accountability requirements from investors
- Infrastructure development: bigger possibility of accidents
- Growing public concerns about OSH: pressure from public
- Encouragement by international organizations: requirement to meet
international standard
- Reinforced government policy for OSH: requirement from government leaders
Did the changes bring about any positive or negative impact on OSH? If yes,
how?
- Positive impact: Increasing awareness of OSH
- Negative impact: Growth-first culture at the cost of safety and health
- Increasing accidents
How do you think that you can minimize the negative impact?
- Effective enforcement of regulations
- Promotion of OSH awareness of top and middle management
- Training of workers in OSH
66
How do you think that you can maximize the positive impact?
- OSH campaign by mass-media
- Intensive dialogue between employers and employees
- Making and implementation of long-term plan for OSH development
Matrix 5.1 Changing Background of OSH
Major changes in the
background of OSH in 10
years.
Positive (+) or negative (-)
impact on OSH?
Minimize / Maximize the
impact?
Examples
● Industrial expansion:
requirement to improve
productivity and human
rights
● Inflow of foreign
investments: accountability
requirements from investors
● Infrastructure development:
bigger possibility of
accidents
● Growing public concerns
about OSH: pressure from
public
● Encouragement by
international organizations:
requirement to meet
international standard
● Reinforced government
policy for OSH: requirement
from government leaders
(+) Increasing awareness
of OSH
(-) Growth-first culture at
the cost of safety and
health
(-) Increasing accidents
● OSH campaign by
mass-media
● Intensive dialogue
between employers
and employees
● Making and
implementation of
long-term plan for
OSH development
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5.2 Capacities for OSH Management (In relation to 4.2, 4.4)
Objective of questions:
(1) To have participants think about the alternative of actions by the government at
different stages.
(2) To have participants think about how the government can work well with the social
partners at different stages.
Questions:
What are priority issues for strengthening/improving OSH management capacity
in your country?
Example answers:
- Creating/coordinating/integrating relevant government departments
- Strengthening legislation
- Strengthening enforcement of the legislation
- Strengthening human resources for OSH
- Promoting awareness raising activities
- Upgrading technological level of OSH
- Facilitating government-private and management-workers dialogues
Why such priorities are given in your country?
- Long-standing policy commitment
- Recent policy reform
- Strong demand from the private sector
- Growing public interest in OSH
- Influence from international society
Who is suitable to take the actions?
- Relevant government bodies
68
- Political leaders
- Major businesses
- Labour unions
- NGOs and advocacy groups
Matrix 5.2 Capacities for OSH Management
Priority issues Why such priorities are
given?
Who takes the actions?
Examples
-Creating/coordinating/integrating
relevant government
departments
- Strengthening legislation
- Strengthening enforcement of
the legislation
- Strengthening human resources
for OSH
- Promoting awareness raising
activities
- Upgrading technological level of
OSH
- Facilitating government-private
and management-workers
dialogues
- Long-standing policy
commitment
- Recent policy reform
- Strong demand from
the private sector
- Growing public interest
in OSH
- Influence from
international society
- Relevant government
bodies
- Political leaders
- Major businesses
- Labour unions
- NGOs and advocacy
groups
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The below 5.3 and 5.4 are covered in the process of action plan preparation under
this TCTP.
5.3 Approaches to the Priority Issues (In relation to 4.2, 4.4)
Objective of questions:
(1) To have participants think about different approaches to the issues and pros and
cons of these approaches.
Questions:
How would you approach the respective priority issues?
Example answers:
- Working on politicians and senior government officials
- Encouraging private initiative
- Making use of NGOs and academics
- Learning from foreign experiences
*Facilitator can note the participants to think of alternative approach or a combination of
different approaches.
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What are the pros and cons of these approaches?
In this connection, could you think of any example of success in your country?
List of Priority Issues and Approaches
Matrix 5.3 Approaches to the Priority Issues
Priority issues Possible
approaches:
Proposals for your
country:
Examples are given
below taking
Malaysia
as a case
Pros/Cons of
the proposals
Creating/coordinating/integrating
relevant government
departments
Working on
politicians
and senior
government
officials
Setting up DOSH
Strengthening legislation Establishing OSHA
Strengthening enforcement of
the legislation
Strengthening human resources
for OSH
Supplying safety
officers by National
Institute of OSH
Promoting awareness raising
activities
Encouraging
private
initiative
Making use
of NGOs
and
academics
Annual awards for
OSH considerations
by Malaysian
Society for OSH
Upgrading technological level of
OSH
Courses and
dialogues by
Malaysia Industrial
Hygiene
Association
Facilitating government-private
and management-workers
Periodic exchange
among stakeholders
71
Priority issues Possible
approaches:
Proposals for your
country:
Examples are given
below taking
Malaysia
as a case
Pros/Cons of
the proposals
dialogues at National Council
of OSH
5.4 Quick Impact Activities (In relation to 4.2, 4.4, 4.5)
Objective of questions:
(1) To have participants gain ideas of quick impact actions.
*Many of these approaches take time to put into practice. Participants may need some
quick impact activities so that participants can make some small changes without
waiting for time consuming fundamental solutions. Such changes may pave the way for
other small changes and enhance/sustain the motivation of participants.
Questions:
Can you think of any quick impact activities that may be useful to ongoing
situation in your country?
Example answers:
- Promotion of low cost methods of work improvements for OSH and risk
assessment by workers, e.g. Work Improvement by Small Enterprises (WISE)
being promoted by ILO especially in Southeast Asia
- Raising awareness of top management, e.g. new year’s presidential addresses
by many Japanese companies making particular reference to the safety and
health,
- Consultation with SMEs, e.g. Japan Association of Safety and Health
Consultants
- Training abroad on specific OSH-related technologies through ODA, e.g. OSH
training courses by JICA
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1.3 Handout for Participants
Brief Histories of Occupational Safety and health in Malaysia and Japan
Third Country Training Programme
75
Brief Histories of
Occupational Safety and Health
In Malaysia and Japan
Third Country Training Programme
June 2018
Department of Occupational Safety and Health
Japan International Cooperation Agency
76
OSH History in Malaysia:
Present Situation, Major Changes and Consequence
77
Ser. No.
Subjects Present Situation Major Changes and Turning Points Consequence
Existing Laws on safety and health
1. Factories and Machinery Act, 1967 (FMA)
The FMA was legislated by Parliament in 1967 and superseded the Machinery Ordinance, 1953. The FMA is both prescriptive and specific, with the Government given the responsibility for enforcement over the manufacturing, construction and mining and quarrying sectors. Its purpose was to prevent occurrence of occupational accidents and diseases at specific workplaces. It remains in force today.
Earlier laws were focussed on proper use of machinery while the FMA extended the scope to include workers' safety, health and welfare, irrespective of whether machinery is used or not.
The FMA sets:
(i) Permissible Exposure Limits (PEL) and Action Levels
(ii) The requirement for engineering and administrative control measures and use of personal protective equipment (PPE);
(iii) Exposure monitoring and medical examination;
(iv) The requirement for record keeping and
(v) Specified penalties if the law is violated.
In 2002, the Act covered 23% of the nation's workforce. More OSH issues surfaced with progress, and new regulations were introduced between 1984 to 1989 on industrial diseases such as lead, asbestos, noise, mineral dust. In total, 15 Regulations were appended to the FMA.
2. Employee's Social Security Act 1969 (SOCSO)
The SOCSO Act requires compulsory contributions from salaried persons and employers which was deposited into a fund (SOCSO) in order to provide social security protection for workers against contingencies of employment injury. The 1971 fund is managed by SOCSO (PERKESO).
PERKESO’s core business include: compensations, rehabilitation and promotional activities to prevent accidents during work.
1985 Survivor’s pension was added
1992 Commuting accidents were also added.
1993 Foreign workers were taken out of the SOCSO programme.
2012 The “Return to Work” programme was introduced, and it culminated in the opening of a Rehabilitation Centre in Malacca in 2016
The SOCSO fund will pay compensation and invalidity pensions, medical and rehabilitation fees to workers who suffered from industrial accidents, commuting accidents and/or occupational diseases.
The compensation paid out for commuting accidents has been increasing and it is now almost as high as that for occupational accidents.
PERKESO spends quite a large portion of its budget for promotional activities on occupational safety and health and commuting accidents.
3. Occupational Safety and Health Act, 1994 (OSHA)
OSHA 1994 was gazetted in February 1994. It extended its coverage to other industrial sectors.
The objectives of OSHA were to:
• Protect other persons (visitor, etc.) at the place of work;
• Secure the safety, health, and welfare or persons at work; and
• Provide system that is flexible to cater rapid change.
Under OSHA, employers are obligated to protect their employees’ health and safety.
Statistics on occupational accidents was high and the government saw the need to reduce accident rates (Bright Sparklers Fireworks factory in Sg. Buloh) and redress the inadequacy of FMA 1967 vis-à-vis
1) Scope of the FMA;
2) Its prescriptive nature that could not keep up with the rapid changes and growth of the economy; and
3) The dependency on government for regulatory and enforcement functions within the FMA.
The government had to build up the necessary infrastructures to implement OSHA. In 1991 it established the National Institute for Occupational Safety and Health (NIOSH). Then it established the National Council for Occupational Safety and Health (NCOSH) to consult with employers, employees, professional bodies and academics.
With more knowledge on OSH, there was greater demand for Personal Protective Equipment (PPE).
Another outcome was the establishment of professional bodies.
Attached to the Act are 7 regulations relating to Control of Industrial Major Accident Hazards; Classification, Packaging and Labelling of Hazardous Chemicals; Use and Standards of Exposure of Chemicals Hazardous to Health, 2000.
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Ser. No.
Subjects Present Situation Major Changes and Turning Points Consequence
Workers are required to co-operate and abide by the company’s regulations to ensure their safety. They have a right to report on unsafe work conditions or practices in the workplace.
DOSH is there to enforce the law and to propagate awareness for safety and health.
4. Self-Employment Social Security Act 2017
This Act was passed to provide similar social security protection given to self-employed persons provided that they contributed to a special fund.
- Effective 1st June 2017 Presently it only applies to taxi drivers and e-hailing drivers (like Uber and Grab drivers) due to the high accident rate on the roads.
5. Petroleum (Safety Measures) Act 1984
Since 1984, DOSH was given the duty to enforce safety and health on-shore and off-shore petroleum installations including petrol stations, natural gas cylinders storage yards.
The multi-national companies are the main players. This has several consequences:
1) They have their own standard OSH operating procedures. DOSH is trying a new arrangement at an integrated petroleum development in Pengerang, Johore, whereby companies take full responsibility for occupational safety;
2) Sub-contractors of these companies are required in their contract to follow the company’s set of OSH procedures.
3) In addition, they commission NIOSH to train and certify their employees on skills and knowledge on OSH before starting work.
OSH Administration - Enterprise Level
6. OSH Management Systems
The 1994 OSHA emphasizes that workplace responsibility lies with employers and employees. Employers must ensure that the workplace was as safe as practicable. Employees must abide by the safety rules but with the right to report on procedures that were unsafe in the workplace.
OSHA requires employers with more than 5 employees to formulate a written safety and health policy.
Requirements to have a safety officer depend on the type and size of the company.
Companies with 40 or more employees at the workplace are required to set up safety committees.
Upon ILO’s recommendation, DOSH adopted the self-regulation principles in UK’s Roben report (1972). OSHA 1994 was based largely on UK’s 1974 Occupational Safety and Health Act.
Further OSH development follows from the introduction of techniques like Hazard Identification, Risk Assessment and Risk Control (HIRARC) and the Japanese KYT. The latter is used by workers for hazard prediction where K stands for hazard or danger, Y hazard prediction, T training.
DOSH is advising smaller companies (SMEs) to appoint safety coordinator that is a part-time ‘safety officer”. This requirement would be compulsory in the near future.
Over the years, NIOSH co-operated with DOSH to train OSH personnel as required under the law. Other organizations like Industry Associations, and local institutions of higher learning are helping to develop the knowledge and capacity of staff and personnel.
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Ser. No.
Subjects Present Situation Major Changes and Turning Points Consequence
7. Voluntary approach by enterprise
Most companies often do not allocate annual budgets for OSH and is often neglected in times of economic downturn.
The Chemical Industry Council Malaysia (CICM) has adopted the “Responsible Care Programme.”
Some of the larger companies and multinationals have their own OSH management systems; however, the SMEs continue to be problematic.
One of the ways to deal with this has been the arrangements made through Human Resource Development Fund (HRDF) to provide courses to the employees on OSH.
In addition, there is a growing trend for SMEs to include OSH management systems in their contracts with the larger or multinational companies.
OSH Administration - Governmental level
8. OSH administrative structure
The government deals with OSH issues mainly via three departments, namely:
• Enforcement for safety and health is by the Department of Occupational Safety and Health (DOSH)
• Training and certification of OSH competent persons is provided by the National Institute for OSH (NIOSH)
• SOCSO pays compensations and/or medical costs for injuries arising from employment. In addition, it provides rehabilitation for those who suffer disabilities arising from a return to work.
Issues on wages /salaries are dealt by the Labour Department. All departments and enterprises including the National Council for Occupational Safety and Health (NCOSH) report to the Ministry of Human Resources.
The Ministry of Health seconds its medical personnel to DOSH to oversee the medical aspects.
DOSH is the main OSH co-ordinator in Malaysia. They started with Boiler Inspectors who inspect the power generating machines, namely boilers. With economic development, the inspectors, who are mostly engineers, extended their inspections to other machineries under FMA 1967. The Department was then renamed to ‘Factory and Machinery Department’
In 1994, with OSHA the department changed its name to its current name, Department for Safety and Health (DOSH). It was made up of State Offices who carry out the investigations, enforcement and promotional activities and then reporting back to the head office. Head office is to prepare the policies, master plans, training of the officers and for some divisions to provide support to the state offices.
Currently there are 15 State offices and 11 divisions within DOSH.
The divisions are:
• Forensic Engineering;
• Industrial Hygiene & Ergonomics
• Management Services
• Chemical Management
• Occupational Health
• Policy, International & Research Development
• Construction Safety
• Industrial Safety
• Petroleum Safety
• SMEs and Non-Factory Sector
• Secretariat for NCOSH
9. Regulatory administration
DOSH enforces three Acts, namely:
(i) Factories and Machinery Act (FMA) 1967;
(ii) Occupational Safety and Health Act (OSHA) 1994; and
(iii) Petroleum Act (Safety Measures) 1984.
• Acts are passed by Parliament.
• Regulation is where a law or rule is prescribed by authority.
• Order is a command directed by the court.
• Guidelines refer to the authority’s policy to determine an action to be taken,
DOSH plans to propose a repeal of FMA based on the review of
the three Acts.
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Besides the Acts above, the DOSH also enforces other legislations, such as Regulations, Orders, Guidelines, Code of Practice.
• Code of practice is a set of written rules on how a certain profession should behave.
10. Occupational Injury Prevention Plan (5-year plan)
The current OSH Master Plan 2020 will concentrate on three targets:
1. to reduce fatalities rate to 4.36/100,000 workers,
2. to reduce accident rate to 2.53/1,000 workers, and
3. increase the reporting rate in occupational diseases to 30% by the year 2020
To achieve these targets, the main strategy of OSHMP 2020 is the inculcation of a Preventive Culture at the workplace.
The first was a business plan for 2006 to 2010, then first master plan (5 years) for 2011 to 2015 and now the current second master plan (5 years) 2016 to 2020
Since implementing these plans, the results are as follows:
2005 2015
Total industrial accidents
51,829 38,753
Accident Rate 5.16 per 1,000 workers
2.81 per 1,000 workers
Fatalities rate 6.93 per 100,000 workers
4.84 per 100,000 workers
For industrial hygiene, 1,198 cases of occupational diseases were reported to the DOSH in 2011 compared to 5,617 cases in 2015. The total number of cases reported during 2011 to 2015 was 13,843; this is considered low when compared to those reported in developed countries. The likely reason being that there are many unreported cases.
11. Statistics of occupational accidents and occurrence of occupational diseases
Under the current legislation employers are required to notify DOSH the occurrences of industrial accidents and occupational diseases.
Workers on the other hand would claim for compensations and medical/rehabilitation benefits from SOCSO as a result of these occurrences.
The numbers from the two sources often do not agree.
One of the aims of OSHMP 2020 is to increase the number of notification of occupational poisoning and diseases in the country by 30% within 5 years.
There is now a linkage between DOSH and SOCSO over the reporting of these incidents for investigation and punitive action purposes.
Statistics on industrial accidents received and investigated by DOSH are available on their official website and updated every two months. Figures and graphs are analysed according to industrial sectors and states.
Similarly, the website reports on statistics for occupational diseases are analyzed according to type of disease.
12. NCOSH The National Council for Occupational Safety and Health (NCOSH) was started when OSHA was implemented. It is a platform whereby stakeholders like employers, employees, government agencies like DOSH, OSH professionals and academicians frequently meet to discuss OSH issues. They meet every three months under the chairmanship of the Deputy Minister of Human Resources.
This was a requirement under OSHA. It was felt to be important to have a platform whereby any issues could be brought up among the stakeholders for discussion and resolution.
DOSH acts as the secretariat for NCOSH.
They also conduct several activities on the promotion of OSH to the public.
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Industrial Safety and Health Programs and Issues
13. Asbestos Control of asbestos usage in workplaces is enforced through the following regulations:
1. OSH Regulations 2013 and
2. Industry Code of Practice on Chemicals Classification and Hazard Communication 2014
3. Factories and Machinery (Asbestos Process) Regulations 1986 which regulates factories in which asbestos process is used.
Malaysia has banned the use of asbestos except for ‘chrysotile’ which is a form of asbestos that is used to make brake pads; currently in seven companies are using the material.
Regulations regarding the removal of asbestos sheets require strict management controls, however the public is not aware of this and authorities are not strictly enforcing.
14. Chemical Hazards Under OSHA 1994, three regulations are dedicated to chemical hazards:
(i) Control of Industrial Major Accident Hazard Regulations 1996
(ii) Classification, Packaging & Labeling Regulations 1997
(iii) Use and Standard of Exposure Chemical Hazardous to Health (USECHH) 2000 regulations
Together with ten guidelines relating to chemical hazards such as the control, classification and labelling, monitoring and medical surveillance, keeping of records, PPE, assessment requirements.
Since implementing the USECHH 2000 regulations, more cases of chemical related diseases and injuries have been reported. Until recently, doctors were not aware of occupational diseases as they were not able to recognize diseases arising from chemical exposure.
1. Generally, there is improvement in chemical management due to an increase in awareness amongst the Small and Medium Enterprises (SMEs) but more can be done.
2. Chemical inventory up to date in DOSH (???)
15. Mental health Mental health arising from stress, bullying or harassment at the workplace is recognised as an issue by the Malaysian Trade Union Congress and by Tan Sri Lee Lam Thye, the NIOSH chairman.
According to DOSH, statistics show no confirmed cases of psychological problems in 2016, so little is done in this area. However, the Ministry of Human Resources themselves have released a booklet on how to handle stress at the workplace.
The increase numbers of reported cases related to occupational diseases and the increase numbers of Occupational Health Doctors
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16. Occupational diseases Limited data collection of occupational diseases, primarily due to lack of occupational doctors and nurses to identify the diseases; and the gradual development of occupational diseases makes it difficult to pin down the cause of the disease.
According to 2013 ILO report, for every death due to occupational accident there would be 6 deaths arising from occupational diseases.
In Malaysia, the most common occupational disease is noise induced hearing loss or impairment, followed by occupational musculoskeletal disease.
In order to comply with OSHA, since the 1990s doctors and nurses specialising in occupational diseases have been seconded from the Ministry of Health to DOSH.
“Use and Standard of Exposure Chemical Hazardous to Health (USECHH) 2000 Regulations” provides the legal framework whereby employers have to control the use of chemicals hazardous to health. NGOs like the Malaysian Industrial Health Association (MIHA) came into being as a result of this Regulation.
Awareness of occupational diseases has risen as more health professionals like doctors, nurses and industrial hygienists have become qualified.
It has been proposed by the Ministry of Health in 2018 onwards will have a day set aside for identifying and treating occupational diseases at government clinics.
Training of technicians by NIOSH to carry out medical surveillances in noise, dust and pathogens.
Under the OSH Master plan 2020, one of the three targets is to increase the reporting of occupational diseases.
MIHA is also active in raising awareness and running some certification courses on occupational diseases for noise-induced hearing disorders and ergonomics.
17. Passive smoking Malaysia became a Party to the WHO Framework Convention on Tobacco Control on December 15, 2005.
Since then, regulations relating to smoking at the workplace, workers can only smoke in designated areas. Private offices currently are not required to be smoke-free. The law enforced by the Health Ministry, but not DOSH.
The dangers of second hand smoke is often neglected, because governments primarily focus on reducing the number of smokers by increasing taxes or putting warning signs on the packages.
However, some precautions have been introduced:
(i) Introduction of Health Screening Program (HSP) in 2013 to check for non-communicable diseases (NCD) like lung cancer due to second-hand smoke.
(ii) It is included as part of SOCSO promotional activities.
18. SMEs It is recognized that SMEs form over 90% of all the businesses in Malaysia. Very often the employers and employees of these businesses have little or no awareness for workplace safety and health, like safety procedures in handling chemicals at the factories and will disregard imposed safety measures. Many accidents occur because of this.
With a high proportion of the workforce in SMEs and the informal economy, many workers face high levels of risk because they tend to be outside of the systems that prevent, report and provide compensation for occupational accidents and diseases.
And without good data it is difficult to design or implement an effective prevention strategy.
DOSH recognizes this problem in its master plans and policies. It becomes imperative to create awareness of OSH amongst the employers and employees. With the help of industrial associations, DOSH work towards reducing the accidents rate in these organizations
Research of OSH
19. Research Research on OSH is undertaken by local universities and at NIOSH.
OSH training and job restriction
20. Training Training courses on laws and regulations such as Safety officer, crane operator, etc., are provided by NIOSH. About three years ago, other organisations like Master Builders Association Malaysia (MBAM), were also
The National Institute for Occupational Safety and Health (NIOSH) was set up in 1991 to conduct all the courses that were required by Law such as certification for Safety Officers.
Promotional OSH activities and awareness are run by a whole array of providers: by government agencies like DOSH, SOCSO, NIOSH and by NGOs representing professional bodies like MIHA and MSOSH, employers’ societies like FMM, and employees’ societies like MUTC.
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appointed. They have to follow the syllabus set by DOSH and trainees have to sit for examinations at NIOSH centres throughout the country. Employers can claim the fees paid for the training from the Human Resource Development Fund (HRDF) if they are contributors.
Private and public universities provide the academic path of OSH.
21. Job restriction Under OSHA, certain jobs like scaffolding, crane loading, site-supervisor, confined spaces require the necessary certificates for employment. These regulations require a medical examination prior to appointment.
In order to meet the requirements of the law, NIOSH and some industrial associations run certification courses for the workers.
DOSH officers can issue summonses or stop notices when regulations are contravened.
General
22. Serious injuries Despite many accidents, the fire at the Bright Sparklers Fireworks factory in the Sungei Buloh village in 1991 caught the nation’s attention. The explosion killed 26 people and injured 100. It also damaged the surrounding properties.
Another serious incident in 1992, when a 3-tonne iron mould fell from a crane onto a passing car killing one person and injuring two others at the Plaza Dumas construction site.
Since the OSHA implementation, the number of serious occupational accidents have declined from year to year and the rate has levelled out. It is hoped that the master plan will further lower the fatality rate to the level of advanced countries.
23. Approach by labour union
Representatives from workers union participate
at NCOSH.
Major trade unions have committee members to train their
member workers
24. Approach by employer's association
Employers’ associations are:
Federation of Malaysian Manufacturers (FMM), Master Builders Association Malaysia (MBAM), Malaysian Employers Federation (MEF) and SME Malaysia.
They represent the interest at the NCOSH meetings and carry out awareness campaigns on the importance of OSH amongst the employers.
High accident rates at factories and at construction sites FMM conducts awareness programs on OSH and even hosts a yearly OSH conference for its members.
Besides awareness programs, MBAM runs a series of certificate level courses on Safety and Health for their employees and members at construction worksite. They also represent building contractors at the NCOSH level.
25. School education The NIOSH chairman advocates that OSH be taught in schools. Presently, NICOSH is running a program to raise awareness for workplace safety to teachers and students. However, such training in schools have yet to be introduced.
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Present Situation, Major Changes and Consequence
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Existing Laws on safety and health
1. Factory Law Established in 1911, enacted in 1916, and superseded by the Labour Standards Act which was enacted in 1947
Under the policy of Meiji government such as "increasing wealth and military power", "encouraging new industry", and "enforcing military-draft system", the government promoted the industry development. However, it imposed severe working conditions resulting in the spread of tuberculosis among young female workers, and then it spread across the nation. That badly affected labour force then did the industry and the draft system. Improving such situation became an important task from the standpoint of not only humanitarianism but also social policy.
Outcomes included: - Job restrictions for female and juvenile workers - Restriction of long working hours - Factory supervisory officer system However, these outcomes were extended to not all the industry types and sizes.
2. Labour Standards Act The 5 major principles in the law were: antidiscrimination, principle of equal pay for equal work for men and women, prohibition of forced labour, elimination of intermediate exploitation, and security of civil-rights exercise.
Established in 1947. It was a basic law for democracy set after the end of the Second World War
The act clearly indicated the philosophy that working with safety and health is the labour's right and employers are obligated to secure the right.
The spirit of the law slowly gained acceptance.
3. Industrial Safety and Health Act (ISHA)
Established in 1972 The world's second-earliest act after USA who established a similar act in 1970
As economic activities expanded, labour accidents rapidly increased. Also, the industrial structure started to change. The relationship between employers and employees stipulated in the Labour Standard Act became obsolete and could not deal with prevention of the accidents. It was necessary for ISHA to obtain cooperation and support by the top management of each industry and association to build safe and healthy workplace.
The responsibility for preventing labour accidents was changed from the employer under the Labour Standard Act to the business administrator in ISHA.
4. Pneumoconiosis Law Pneumoconiosis Law established in 1960 Pneumoconiosis is a disease suffered when workers are exposed to dust. It is one of the most common occupational disease.
It is therefore important to control dust. When the worker has been diagnosed with the disease the company has to pay for his/her cure and /or provide alternative jobs.
5. Obligation to consider OSH
Article 5 of the Labour Contracts Act clearly stipulates the employer's obligation to ensure labour's safety and health at the workplace. This obligation is recognized in judicial precedents.
The first supreme court precedent: In the case of Hachinohe maintenance factory of the Ground Self-Defence Force (1975), the court established the employer's obligation to consider workers’ safety.
The employer's is obliged to consider protecting a worker’s safety and health from hazards at the workplace.
6. Workers’ Right to damages
A worker suffered from depression resulting from over fatigue with long working hours as long as 105 hours or more over time a month and finally committed suicide in 2017. Papers were sent to the prosecutor for the company and the supervisor.
While the philosophy of “respecting human life” is generally accepted, claims for damages due to labour accidents have increased in number and the amounts claimed.
The Dentsu case, relates to a worker who suffered from depression resulting from over fatigue due to long working hours and finally committed suicide on 21 March 1991.
The supreme court decision in March 2000 served as a precedent where it was acknowledged that a company was responsible for suicide due to overwork. As a result, a settlement of ¥168 million was paid by the company.
It was broadly acknowledged in society, that overwork is as a work-related disaster. The court’s decisions to award compensation for the workers who are suicidal or depressed due to overwork emphasize management’s responsibility to put in measures for preventing this.
Although the Dentsu case opened the way for suicide or depressed victims caused by overwork a right to compensation, but it did not lead to an improvement of the “overwork” conditions in many companies.
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OSH Administration - Enterprise Level
7. General Risk Assessment for equipment and operation
An obligation to make an effort of general risk assessment was imposed in 2008
In 2017, the implementation rate was 46.5%.
Measures for the prevention of accidents lie with the business administrator. General risk assessment followed by risk reduction measures.
Today, management has shifted its focus on the importance of reducing risks in workplaces in advance rather than to put in measures after, in its effort to prevent labour accidents.
8. Occupational Safety and Health Management System (OSHMS)
In 2006, the implementation rate over the whole industry of OSHMS was 7.3%. However, according to a survey in 2010, in 94% of the sites practicing OSHMS the accident rate was decreased. The reason given for not executing was the lack of knowledgeable staff and poor understanding of the contents.
In 1972, the Roben’s Report in the UK stated that a nation’s laws and regulations had limited effect to prevent workplace accidents, it was essential for employers to self-regulate. Based on this report the UK government in 1974 enacted an epoch-making “Health and Safety at Work Act” which set out only basic OSH requirements and the details to be filled in by employers. As a result, UK recorded a decrease in fatalities in labour accidents from 651 (in 1974) to 107 (in 2009) – a reduction of 80% in accident numbers! This idea of self-regulation marked the beginnings of the OSHMS concept that subsequently received worldwide recognition and acceptance.
The Ministry of Health, Labour and Welfare (MHLW) introduced the guidelines on OSHMS in 1999, to the nation. A survey in 2004 revealed:
No. of casualties/1,000
workers
Sites with OSHMS 3.91
Sites without OSHMS 6.15
Indicating that OSHMS is effective for lowering the injury rate.
9. Safety management in line
It is common in Japanese enterprises that responsibilities to safety and health at the work place lie with those who create the risk and with those who work with risk.
While safety should be managed by specialists, some advanced companies pursued safety management in line. This move resulted in the decrease of the injury rate down to a quarter in 1952. The government instructed in 1958 that safety be directed through the line. After a study tour to Europe and the USA in 1966, the labour accident prevention plan in 1968 clarified the division of roles for safety management between the line and the staff.
The Industrial Safety and Health Act stated the responsibility of each management level to give safety directions to the workers to prevent accidents. Thus, the safety management in line was put into place.
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OSH Administration - Governmental level
10. OSH structure at Enterprise Level
Assignment of safety and health staff will depend on the type of industry and the scale of the site
The Labour Standards Act (LSA) stipulated that employers of certain-size sites must assign safety managers and health managers. That stipulation was carried forward into ISHA.
Under LSA, the physician acted as the health manager but under ISHA he had the position of an industrial physician. In addition, ISHA called for the following requirements:
In a large-sized site a general safety/health manager is to be appointed to oversee the other safety managers and health managers.
The prime contractor to appoint a general safety/health supervisor to manage the other safety/health managers; and the subcontractors to assign their own safety/health supervisors at each construction or shipbuilding site to prevent labour accidents there
Factory administrators who have their own workers working with subcontractors' workers must ensure continuous communication and coordination between them for OSH practices. (This requirement has been imposed since 2006 for such situations are common).
The accident rate has decreased in number since ISHA was enacted; especially in the construction industry.
11. Enforcement Inspection officers
In 2016:
No. of workers: 52 million, No. of Labour Standards Inspection Offices: 321, No. of Labour Standards Inspection Officers: 3,241 (0.62 per employee)
No. of sites inspected on a regular or declaration basis: 160,000 over 4.28 million sites
As the factory supervisory system was launched in 1915, the labour inspections have been given to local administrative agencies, since the Labour Standard Act was enacted in 1947.
It is a matter of fact, that the numbers of labour standards inspectors are inadequate when compared with the number of concerned sites. To overcome this deficiency, for sites with high accident rates the inspection offices provide detailed supervision and instruction to improve their safety and health plan or designate those sites special attention.
12. Injury Statistics Annual indexes for all industries in 2016: Fatalities: 928
Casualties (<4 lost days): 117,910
Injury rate (casualties per 1,000 workers): 1.63
Occupational injuries had increased rapidly during quick progress of mechanization and automation in manufacturing processes since 1958.
After enactment of ISHA in 1972,
1972 1982
Fatalities 5,631 2,674
casualties (< 4 lost days)
387,342 294,319
(25% down)
13. Occupational Injury Prevention Plan (5-year plan)
Since the first plan was set in 1958, the plans have been updated every 5 years with the latest - 12th plan (2013-2017)
With economic revival after the 2nd world war, labour accidents rapidly increased. To reduce these accidents, the first labour accident prevention plan was developed in 1958. 2017 was the final year for the 12th plan, completing the 60th year after the 1st plan.
Any development of the labour accident prevention plan was required to be deliberated at the labour policy council. The plan required the agreement of all the stakeholders namely labour and management, and the government so that each of the concerned parties has a sense of ownership, of the effective measures to be taken in accordance with the plan.
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Industrial Safety and Health Programs and Issues
14. Measures to care for aging population
A manual to improve care at the workplace for older workers have been developed and publicized.
In Japan was rapidly aging, the labour population aging 50 and above is approximately 30% of the whole labour force. The casualties (identified as 4 or more lost days) for the 50s and above were 33.6% in 1981 and 44.3% in 2009.
The accident prevention measures for older workers have been included since the 6th labour accident prevention plan in 1983 to the 12th plan in 2013.
15. Asbestos Registered cases of occupational health disorder with asbestos reached 981 in number in 2016.
The health disorder of employees in the asbestos manufacturing factory in Osaka was publicized in 2005. The health disorder spread among not only the employees but also their family and neighbours.
An ordinance for prevention of health disorder with asbestos was issued. Notification is required for any asbestos-removal work, and preventive measures against disposal of asbestos are required.
Asbestos-related lawsuits have been filed by factory and construction workers and currently there are 14 cases around Japan that is pending.
16. Comfortable workplace As workers' mindsets are changing, it became an important task for enterprises to provide comfortable workplaces so that workers feel less fatigue and stress at their jobs.
Hence the amended ISHA has incorporated this need.
17. Chemical Hazards Benzene poisoning occurred with 3 fatalities in 1958 at the local industry that was using the benzene rubber adhesive for production of sandals.
The Ordinance on Prevention of Organic Solvent Poisoning was introduced in 1960.
18. 1. It was reported that the workers who handled ortho-toluidine in a chemical factory subsequently suffered from bladder cancer. Although the concentration in the surrounding air was low, it is suggested that it had been possibly absorbed through the skin.
2. The workers in printing factories in Osaka were found in 2012 to have suffered from bile duct cancer caused by 1,2-dichloropropane.
The risk assessment of chemical substances has become an obligation of any business management who manufactures or uses one or more of the 663 kinds of chemical substances listed in the amendment of the ISHA (2016).
19. Label indication is provided by 61.3% of the makers, and Safety Data Sheets (SDS) delivery by 49.1% of the makers in 2016.
Two major social concerns: Either catastrophic disasters of explosion and fire or serious health disorders such as cancers have been caused by chemical substances. Nearly 500 cases of labour accidents occur each year recently with chemical substances. Half of these cases are caused by explosion and fire, and another half by health disorder.
The Industrial Safety and Health Act (ISHA) require preventive control for both events.
Further ISHA requires the business administrator who manufactures or distributes 663 substances,
SDS delivery
To conduct risk assessment.
To provide label indication to communicate information on dangerous or harmful properties of chemical substances.
For prevention of explosion and fire, ISHA stipulates control over dangerous chemical substances listed in the Order for Enforcement of Industrial Safety and Health Act.
For prevention of health disorder:
ISHA bans either manufacturing or use completely of 8 substances including asbestos, and
requires, for 121 substances, control of the working environment including emission prevention, and appropriate work methods, and
Health control including physical examination.
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20. Mental Health Number of registered cases of occupational diseases in 2016
Mental disorder: 498
Brain and/or heart diseases: 260
Labour's health disorder from working long hours became an issue.
(see note 6)
The mental health guidelines were introduced in 2006.
21. Physical examination and follow-up actions are required. Mental health activities are common at 62.3% (2016) of the business sites. Stress check is in place.
Before 1972, general physical examination was mostly focused on tuberculosis testing. In 1972, ISHA made physical examinations compulsory. When the Act was amended in 1988, more items like lifestyle-related diseases were added to the physical examination. Since Dec. 2016 triggered by an increase of workers with mental health disorder, a stress check has been introduced.
(See also Note 6)
Physical examination is now a standard operating procedure except for small-enterprises.
Stress checks are also common although at the present it is not clear with businesses of less than 50 workers.
22. Passive-smoking prevention
The ISHA requires the employer to take preventive measures. As of 2018, these measures have been taken in 85.8% of the business sites.
The harmful effects from passive smoking have been clearly illustrated by IARC and WHO so in 2014, ISHA was amended to included passive-smoking prevention. Since June 2015, the focus for prevention of smoking has changed from a more comfortable workplace to the preservation and promotion of health
The preventive measures include separating smoking areas in offices and to ensure that the smoking area maintains an air inflow at the rate of 0.2 m/sec or higher with the smoke being vented outdoors.
It would seem that these preventive measures are gaining popularity.
23. Exhaust Ventilation Installation of local exhaust ventilation is required by the law and regulations to prevent exposure to the dust and harmful vapour/gas. This covers 121 substances that are subject to special regulatory control.
This is a result from a research project sponsored by the nation's subsidy system, research in the area of sanitary engineering. It was based on the findings from Europe and US to develop the design standard for local exhaust ventilation. This was to be a core engineering measure for poisoning prevention. The research led to publication of several specialized books that aided improvement of the environment.
The research outcome of the project has been used in the Pneumoconiosis Law (1960), Ordinance for prevention of organic solvent poisoning (1972), and Ordinance for prevention of lead poisoning.
Research of OSH
24. Establishment of University of Occupational and Environmental Health
The university produces physicians who specialize in industrial medicine. They also conduct research into industrial medicine. Many graduates work exclusively for many companies as Industrial Physician.
ISHA 1972 defined “Industrial physician” as one who manages labour health at a site. His duties include making recommendations necessary for labour health control to the business administrator who in turn is obliged to implement those recommendations. With such onerous responsibilities, it was necessary to ensure proper training for these Industrial physicians.
In 1978, a university was established as an educational and research institution dedicated to industrial medicine.
The university has been contributing to the enhancement of the industrial physician system.
25. Testing / Research National Institute of Occupational Safety and Health, Japan
A Safety Research Institute was established in 1942, and a Medical Institute which was established in 1949 were combined to form the National Institute of Occupational Safety and Health in 2006. Since then it has been reorganized as the “Labour Health and Safety Institute” for the government in 2016.
The Institute contributes to prevention of labour accidents by the publication of specialized technical information on occupational safety and health.
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OSH training and job restriction
26. Job restriction Dangerous and harmful jobs have been restricted to the workers who were given respective job licenses or completed respective skill training or special training.
In the past, prevention of labour accidents was most focused on ABC (A: acetylene welding, B: boiler, C: crane), and the job restriction system or license system was established to secure capability of the labour engaged in such work. After that, the focus of prevention of labour accidents moved to BCG (B: boiler, C: crane, G: gondola or hanging scaffold). In those days, it was examined which is more effective a license system based on one-time testing or a skill training system imposing certain hours of training as a means of securing the capability of the labour engaged in a restricted job. Then the skill training system was added to the license system.
The job restriction system is almost in place. The special training system appears to be in place in large-sized sites, but not prevailing in small-to-medium-sized sites.
A special training system has legally been instituted upon establishment of ISHA for the jobs which appear to be less hazardous or less harmful than restricted jobs as it is ultimately required for accident prevention that each worker improves his or her awareness and skill.
27. Training Training are provided by the training agencies based on a unified legal curriculum of subjects, contents, and hours. Companies themselves also provide Grass-roots training for their workers.
Upon ISHA, new employees training, special circumstances training, and site-supervisor training are compulsory. The “Tokyo Safety & Health Education Centre” was established in 1973 with the aim to train the trainers. To ensure the standard of the training agencies they have to be designated by the government first, and only public-interest corporations on the Civil Code are qualified for designation. As part of the government's deregulation policy, with the amendment of ISHA in 2003, the current registration system for training agencies include associations, business corporations that are capable of giving adequate training.
Regulatory or voluntary safety and health training is in place being implemented in each local Labour Standard Association, and training and compliance with regulations have been developed broadly including assignment of the regulatory safety and health staff. Training subjects, hours, trainer qualifications, and so on in the skill training which registered training agencies implement are stipulated by the regulatory training rule. The government is providing supervision and instruction to make sure of proper implementation of the training.
General
28. Serious Incidents
Two serious accidents occurred on the same day of 9 Nov. 1963:
the double collision accident of trains caused 161 fatalities, and
the coal dust explosion caused 458 fatalities in the Mitsui-Miike coal mine. Human lives were sacrificed in the production-centred society.
From 2011 onwards, there were a series of serious fire and explosion accidents in chemical and steel factories of leading Japanese companies.
Triggered greatly by those accidents, the whole society reaffirmed the dignity of human life and required it to be respected in every area of society.
In May 2014, three ministries collaborated in a committee to handle disaster prevention in petrochemical complexes.
29. Approach by labour union
The hot issue currently with labour unions are on mental health. There have been intensive efforts made to disseminate information through awareness-raising activities and discussions in labour-management councils, workplace meetings, and safety and health committees. Articles on the topic have also appeared in the labour-union's papers, bulletin boards, etc.
Two major accidents a train collision and a coal mine explosion, both of which occurred on 9 Nov. 1963 triggered a strong reaction from the labour union such that it raised a slogan, – “Safety would not be ensured without resistance “. The first in 20 years after the Second World War.
(See also note 6 for current issues)
The Japan Labour Safety Centre was established in 1966, to provide information, consultation, training, and investigation into labour accidents. It employed specialists as executives of labour unions so that unions could work with management for reduction in accidents at the workplace.
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30. Voluntary approach by enterprise
Voluntary approach in larger enterprises have progressed to include KYT training for workers, near miss reporting, safety inspection tour, and safety implementation and cycle prediction whilst the small-to-medium sized firms have not been so ready.
KYT is a technique for hazard prediction by workers. In Japanese, K stands for hazard or danger, Y hazard prediction, T training. KYT is conducted using illustrations as an effective way for cultivating sensitivity and imagination to the dangers at work.
It was first launched by a steel company in 1974 and rapidly became widely accepted by industries and associations in Japan as a method to encourage pro-active approach to acceptance of safety for workers.
Since then, variations of KYT have developed to meet the demand for the different applications of the technique.
31. Tokyo Safety & Health Education Centre
The trainees who completed training at this centre are implementing the safety and health grass-roots training in enterprises across the country, and also playing leadership roles to promote safety and health in their companies.
The outline of safety and health training promotion was established in 1974 at the time of ISHA enactment for the purpose of organizing the ideal system of safety and health training, clarifying the respective roles of the government, related associations, and enterprises, and enhancing the training further.
The Ministry of Labour established the Tokyo Safety and Health Education Centre in 1973 and the Osaka in 1978 and consigned the operation of these centres to JISHA. They provide training for expected leaders in enterprises with charge. Both centres provide training for trainers or specialists in various types of training according to ISHA requirement. The legally required subjects make up 90% and voluntary ones 10% of all the training subjects. Total participants in the training so far are 232,000.
32. Injury prevention organization -
Established in 1964 as Japan Industrial Safety and Health Association (JISHA)
This association was established to provide support to the business administrators' voluntary efforts that were needed to cope with the rapid increase of labour accidents.
JISHA is an umbrella organization making up of 4 labour accident prevention associations in the construction, land transportation, port transportation, and forestry and timber manufacturing industries. These member associations represent the employers and were created under the Labour Accident Prevention Association Act . There are currently 5,000 members nationwide.
33. Established in 1964 as Japan Construction Occupational Safety and Health Association
This association was established to support business administrators' activities in the construction industry to cope with the high labour accidents at construction sites.
34. Japan Association of Safety and Health Consultants This association was initially incorporated as a public-interest incorporated association under the Industrial Safety and Health Act (ISHA), Article 87 in 1983 to help industrial safety consultants and industrial health consultants, maintain their dignity, enhance their qualifications, and improve their services. Since 2012, it has been operating as a general incorporated association.
Presently, the association has 2,524 consultants made up of 981 qualified for safety, 1,335 for health and, 146 for both safety and health.
Besides representing the industrial safety consultants and industrial health consultants, the association actively provides inspection and guidance on industrial safety and health at the request of the nationwide companies including SMEs, and so on.
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Ser. No.
Subjects Present Situation Major Changes and Turning Points Consequence
35. Safety and health in education
Although it was recognized that safety and health training in elementary schools, junior/senior high schools, and universities to be important, the disaster prevention training was generally held to be even more important.
In 1963, it was recognized that there was a need for learning and research in safety engineering following the US model for advanced safety training and research. Yokohama National University was the first to establish a faculty for Safety Engineering in 1967.
When ISHA came into effect, the Japan Association of Industrial Safety and Health Consultants conducted inspections of university laboratories. These inspections resulted in many recommendations for improvement. Furthermore, it was found that the instructors, students and even candidates for future business executives had poor safety awareness.
As a result, very little is done to educate the younger generation on safety and health.
36. Safety campaign and news by media
Mass media such as newspaper, radio, and TV can be quite influential, when they report on or raise issues about labour accidents.
Since May 1952, The Daily Industrial Newspaper started a column on "Industry and safety/health".
Over the years, Japanese media have continuously reported on various issues of safety and health, and it appears to have enhanced the people's knowledge and awareness for safety and health.
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B. Group Session
(1) Choose rapporteurs in respective groups. (2) Based on the below questions, exchange ideas and summarize them with the
rapporteur’s laptop. 1. Changing Background of OSH a. Have there been major changes in the background of OSH of your
country in the past 10 years or so? b. Did the changes bring about any positive or negative impact on OSH?
If yes, how?
c. How do you think that you can minimize the negative impact?
d. How do you think that you can maximize the positive impact? 2. Capacities for OSH Management a. What are priority issues for strengthening/improving OSH management
capacity in your country?
b. Why such priorities are given in your country?
c. Who is suitable to take the actions?
A. Discussions with the participants Based on the last 2 pages of slideshow, exchange opinions.
A Discussion Framework
Questions Your Country Malaysia
For example: Japan
Why OSH? A safe and healthy work environment Basic human right
What are major roles of government in OSH?
Law enforcement Policy/Plan making Compensations Stakeholder meeting
What institutional support are needed for self-regulation?
HRD and technical support Awareness building Consultancy
What are priorities in the OSH for SMEs?
DOSH’s division for the SME’s Funding SME’s OSH training
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Based on the priorities issues that were discussed in the Group Session at the beginning of TCTP, please discuss the following points for the Action Plans. 1. Approaches to the Priority Issues a. How would you approach the respective priority issues?
b. What are the pros and cons of these approaches?
c. In this connection, could you think of any example of
success in your country? 2. Quick impact activities a. Can you think of any quick impact activities that may be
useful to ongoing situation in your country?
C. Action plan preparation List of Priority Issues and Approaches
Priority issues (Copy the priority issues that were discussed in the Group Session at the beginning of
TCTP.)
Possible approaches:
Proposals for your country:
Examples are given below taking Malaysia as a case
Pros/Cons of the proposals
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2. Training Materials for Productivity
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2.1 PowerPoint
Malaysia Third Country Training Program on Productivity Development:
Introductory Session History of Productivity Development in Malaysia and Japan
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2.2 Facilitator’s Guide
Facilitator’s Guide for the Initial Session of the Third Country Training Programme
on Productivity
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Facilitator’s Guide for the Initial Session
of the Third Country Training Programme
on Productivity
Malaysia Productivity Corporation
(MPC)
Japan International
Cooperation Agency (JICA)
June 2018
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Facilitator’s Guide for the Initial Session
of the Third Country Training Programme on Productivity
Purpose of the Session: Allow the participants to get insight into the importance of Productivity in development and identify key factors for action for their respective home countries.
Target Participants: Government officials, mostly administrators and managers in African countries. They are supposed to organise themselves into three to four groups (five to seven participants per group), according to the advice to be given by the facilitator at the beginning of the session. The facilitator should take account of participants’ working language and national economic environment, i.e. industrializing or predominantly agricultural.
Facilitator/Discussants: A facilitator from MPC and a couple of discussants such as those from ex-MPC officials. The discussants are desired to have a wide perspective based on long experiences in productivity practice; one from government and another from private.
Venue: A meeting room that can accommodate about 20 participants to be seated in three to four groups in addition to about 3 facilitator and discussants.
Equipment and materials: (For the slideshow) One Computer, One Projector, and One Speaker; (For the group session) Big blank papers and markers for each group
A Programme (120 minutes): 1. Introduction with a highlight on why histories in TCTP (5 min.) 2. Slideshow on the histories of Productivity in Malaysia and Japan (15 min.) 3. Exchange opinions on the slideshow (10 min.)
How did Malaysia and Japan address the issues on: e.g. awareness of business people, budget constraints, and human resources?
4. Group session ⚫ Introduction (10 min.)
(Individual work) Each participant fills out a table “Country Profile of Productivity Development” in the handout for the participants.
Question 1. Current Problems and ideas: What problems are there in terms of the quality and productivity development in your country and what ideas do you have for addressing the problems?
⚫ Group discussions (20 min.)
Step 1: Choose a rapporteur. Step 2: Brainstorm on the above Question 1 with a focus on identifying current problems and ideas for addressing the problems in the table. Step 3: Exchange opinions on the below Question 2 and 3, compile the results on a big blank paper.
Question 2. Next step at national/organisational level: What are your ideas for responding to the problems at the national and/or organizational levels?
Question 3. For the sustainability: What do you think necessary to sustain movement of productivity improvement?
⚫ Summarize the group discussions (5 min.) ➢ The rapporteur summarizes the results of discussion.
5. Plenary session ⚫ Presentation of the group discussions by using the table (20 min.) ⚫ Discussants’ comments based on the presentation of group discussions (30 min.) ⚫ Wrap up by the facilitator (5 min.)
Bearing the issues of Q2 & Q3 in their mind, the participants receive the training. Meanwhile, the table of handout and the big blank papers are used in the Action Plan Preparation for the participants’ review.
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1. Objectives
The objectives of this introductory session are:
- To share experiences of quality and productivity development in Malaysia and
Japan;
- To create the awareness among participants that they are not the only people
facing difficulties;
- To raise awareness on the factors which participants need to consider for preparing
action plan.
In training, it is important to motivate the participants and attract their interests in the session.
The key is, therefore, to change their feeling from negative to positive. A frequently
expressed negative feeling of participants is that their economic and social conditions are far
different from Malaysia and it is hard to be like Malaysia. It is not true: Malaysia as well as
Japan had hard times like them before.
2. Target Participant
The materials are prepared for mainly targeting at the governmental officials involved one
way or another in the quality and productivity development of a country.
3. Equipment and materials: (For the slideshow) Computer, Projector, and Speaker
(For the group session) Big blank papers and markers for each group
4. Key Issues in the Contents
Key issues of the introductory session are as below.
- There have been long-time and huge efforts made by many people for quality and
productivity development: No country has achieved high quality and productivity in
a day.
- There is no single approach for achieving high quality and productivity. People and
companies have tried to apply available methods and techniques suitable to their
social and economic situations and developed such approaches as are specific to
their countries.
- Quality is a prerequisite for market competition. Productivity development without
quality does not make sense.
- It is critical that people, especially those of top management are aware of the
importance of quality and productivity.
- High quality and productivity are not achieved automatically. Tradition and culture of
a country have less impact over quality and productivity than well-designed
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institutional mechanism such as incentive system in the company.
5. Suggestions for the Facilitator on How to Conduct this Training Session
(1) Ask questions in a way to encourage participants to think by themselves
One of the major outputs expected from this TCTP is the participants’ basic awareness and
understanding on the topic. It is in this regard that the facilitator is encouraged to guide the
participants to think for themselves. Emphasis should be given to throwing questions in a
way to trigger thoughts and motivate discussion of participants. Some examples are given in
“5. Discussion Questions and Possible Points of Discussion.” The questions should not be
answered by the facilitator. The facilitator should wait until participants foster thinking and try
to answer for themselves. This process is more important than the answers themselves. The
facilitator is not supposed to prepare questions to confirm understanding of the participants
on the Malaysian or Japanese experiences but to review such experiences in the context of
the countries they are from.
A question, for instance, would be “Which initiative would work better in the productivity
improvement of your country, government or private?” The facilitator may encourage
participants to think further by asking “Why so?” There is no universal answer to the
question of this kind. The facilitator would encourage the participants to continue to discuss
on possible options or option-mix for different conditions in different countries.
(2) Promote the exchange of information and ideas among themselves.
Intensive communications among participants with different socio-economic background are
an advantage of combined training for those from different countries. This TCTP also
emphasizes the exchange of information and ideas among participants on top of knowledge
transfer from facilitators and lecturers to the participants. The exchange could be more
effective when a training program assumes a common target for the participants. To this end,
this program incorporates the preparation of action plans at its end. The facilitator is
expected to encourage the participants to come up with some key concepts for the action
plans through the exchange in this session.
6. Discussion Questions and Possible Points of Discussion
Those described below are examples of discussion questions. It is recommended to ask
questions to the participants and encourage discussions among them so that they actively
participate in the session from start to finish.
In this regard, instead of just receiving questions on the slideshow after showing it, we will
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ask participants to share their experiences with each other, having in mind the contents of
the slideshow. Such discussion would need:
After the slideshow, with the facilitator’s lead, the participants exchange opinions on the
slideshow: how Malaysia and Japan addressed the issues on awareness of business people,
budget constraints, and human resources for example, which are linked to the next Group
Session.
In the Introduction of Group Session, ask participants to write country profile for each
country.
Question 1. Current Problems and ideas: What problems are there in terms of the quality and productivity development in your country and what ideas do you have for addressing the problems?
Each participant fills out a table entitled “Country Profile of Productivity Development” in
the handout for the participants.
Example answers:
Table: Country Profile of Productivity Development
Name of country
Name of the organizations in charge of productivity development
Leader/Advocator of productivity development
Current problems Ideas for addressing the problems
Country A XX Productivity Authority
President Low awareness of business people Limited budget
Send business leaders to foreign countries for benchmarking To create membership to earn money for expanding seminar opportunities
Country B Productivity Development Corporation
CEO
Need to raise 50% of the total budget by themselves Difficulties in finding good advisors
Membership Awareness seminar Free trial consulting
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In the Group Discussion of Group Session,
⚫ Step 1: Choose a rapporteur. Step 2: The participants brainstorm on the above Question 1 with a focus on identifying current problems and ideas for addressing the problems in the table.
⚫ Step 3: Participants in the respective groups exchange their experience and ideas with special reference to the Questions 2, and 3.
Question 2. Next step at national/organisational level: What are your ideas for
improvement at the national and/or organizational levels?
Example answers and relevant issues for discussion:
- Raising awareness of top management and labour leaders on productivity and
quality
- Creating/Strengthening organization to promote productivity improvement
- Intensifying the training of managerial staff in productivity
- Strengthening collection, analysis and diffusion of data relevant to productivity
- Promoting international exchange of the experience in productivity improvement
Question 3. For the sustainability: What do you think necessary to sustain productivity
movement?
Example answers and relevant issues for discussion:
- Generating profits for future investment
- Advocacy/ Campaign for social awareness
- Trainings of managers
- Introduction of productivity in compulsory education
- Trainer training
- Establishment of monitoring system
- Better treatments such as a higher salary and a better work environment
- Appropriate incentive mechanisms like pay-raise, performance bonus, promotion,
etc.
- Fair evaluation system
- Monitoring system
- Introduction of group activities
In the Plenary session, each rapporteur presents the results of group discussion by using
the table. The Discussants provide comments for the presentations. Finally the facilitator
wraps up the Plenary session by taking note the next “After this Initial Session”.
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After this Initial Session, the participants receive the training programme bearing the next
step and sustainability identified in the Question 2 and 3 in their mind.
In the Action Plan Presentation, the participants revisit the table of handout and the big
blank papers; review any changes or new ideas on the next step and sustainability, and
identify concrete actions which each participant can implement at individual level.
END
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2.3 Handout for Participants
Malaysia Third Country Training Programme on Productivity:
Histories of Productivity Development in Malaysia and Japan
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Brief Histories of Productivity
In Malaysia and Japan
Third Country Training
Programme
June 2018
Malaysia Productivity Corporation Japan International
Cooperation Agency
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Malaysia
In the productivity development of Malaysia, the government and multinational corporations took on
important roles in developing human resource and product quality. The Malaysian industrialisation started
in the 1960s (Figure 1).
The National Productivity Council (NPC) was established in 1962 as a joint project of United Nation’s
special fund and the Malaysian government (Figure 2). NPC became an autonomous organization through
the National Productivity Council (Incorporation) Act No.19 in 1966. This organization later became the
Malaysia Productivity Corporation (MPC).
International Labour Organisation (ILO), as the executing agency of the project, dispatched experts from
various countries (Figure 3).
Figure 1: Industrialization in the 1960s
Figure 2: NPC Building in 1970
Figure 3: National Seminar on Industrial Relations
and Labour Laws in 1973
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Initially, NPC was focused on fostering facilitators for human resource development, and worked on
productivity as well as marketing, leadership and training of facilitators. NPC invited many experts from
Austria, Germany, Japan etc. NPC staff received technical transfers from those experts and worked
together in preparing training materials and providing training for industries. NPC also held a commercial
hotel where they provided prevocational and upgrade trainings for those working in hotels and restaurants
(Figure 4).
NPC believed that quality and productivity development was a prerequisite for developing internationally
competitive industries and attracting foreign direct investments. Thus, NPC provided business leaders and
corporate owners with the training in quality and productivity. At that time, however, people were not aware
of the importance of quality and productivity. They believed that they could increase the number of workers
if they wanted to increase production volume. After a few years, NPC changed its strategy and
emphasized quality instead of productivity since quality was visible compared to productivity.
To expand training activities in individual companies, NPC established the Malaysian Association of
Productivity (MAP) in 1969. Those companies which paid membership fees could attend the trainings and
seminars provided by MAP. In 1970, New Economic Policy (NEP), a 20-year economic development plan,
was formulated. It shifted the industrial target from domestic to export market. NPC took the main role in
the human resource development for industries in a way to respond to this change.
In 1983, Prime Minister Mahathir advocated the Look East Policy, which was aimed at learning from
development experiences of Eastern Asian countries like Japan and Korea. Under the policy, the
government worked for long-term human resource development for industries and short-term technical
training.
Figure 4: NPC hotel and training in 1986
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Japan International Cooperation Agency (JICA) provided USD 7.7 million grant aid for language learning
centres for preparatory course before studying in Japan. The Japanese government dispatched teachers
of Japanese language, mathematics, chemistry, physics, etc. to this preparatory course in the University of
Malaya JICA also provided a grant aid to Universiti Teknologi MARA for Japanese language education.
Between 1984 and 2009, more than 3,000 students studied in engineering faculties in Japan with the
Malaysian government fund.
Regarding the short-term technical training,
engineers were sent to Japan for on-the-job
training. The Malaysian government bore the
costs of their air tickets and accommodations.
JICA and Association of Overseas Technical
Scholarship (AOTS, currently standing for the
Association for Overseas Technical Cooperation
and Sustainable Partnerships) received
participants and provided them with initial training
in Japan. AOTS alone accepted 1,152
participants between 1982 and 1997.
In 1983, Malaysia joined in the Asian Productivity Organization (APO) with NPC as the national
productivity organization for Malaysia. After joining the APO, many Malaysians were sent for the short- and
medium-term trainings in other APO member countries. The number of those in Japan was 567 persons
between 1992 and 2017.
During this time, the National Car Project known as
Proton Project started under the initiative by the
Prime Minister Mahathir. Proton was established as a
joint venture between Japanese and Malaysian
companies. Suppliers to the Proton Project, including
those Japanese and Malaysians introduced into
Malaysia the concepts and techniques of the quality
and productivity development in Japan (Figure 6).
Multi-national corporations other than Malaysians also introduced their knowledge of quality and
productivity development into Malaysia. These multi-national corporations demanded high quality and
productivity from their suppliers. The suppliers thus tried to improve their quality and productivity and meet
requirements from their customers. In the meantime, technical support was extended to the Malaysian
automotive industry through the Malaysia-Japan Automotive Industry Cooperation project during the period
Source: AOTS
Figure 5: Participants in a Japanese Company under
the Look East Policy
Figure 6 :First Proton Saga appeared in 1985
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2007-2011. The project was carried out based on Malaysia-Japan Economic Partnership Agreement.
In 1990, NEP reorganized itself into National Development Policy (NDP). NDP declared that Malaysia
would become an advanced country by 2020. In response to this new dimension, National Productivity
Council was transferred to National Productivity Corporation. NPC made attempts at strengthening
research function and more widely disseminate the concept of quality and productivity.
However, SME owners were not fully aware of the quality and productivity development and required
human resource development. They still preferred to invest in facility and machinery than workers. To
change their mindset, the Malaysian government established the Human Resources Development Fund
(HRDF) in 1993. All companies were obliged to pay a human resource development levy to the fund
established by PSMB Act 2001. A company could request HRDF to pay back the cost for the training which
it provided to its workers.
NPC was corporatized in 2008 and became Malaysia Productivity Corporation (MPC) With the change in
name, MPC’s main role shifted from human resource supply for industries to awareness raising,
methodology development and information dissemination on productivity improvement. At present, MPC
promotes benchmarking and best practice, industrial productivity database, and regulatory review practice.
In summary, under a strong initiative by the government, NPC (current MPC) was established and took a
leading role in fostering facilitators for industries. In consequence, foreign companies accelerated
investments in Malaysia. They brought into local suppliers the knowledges and techniques in quality and
productivity. This process paved the way for an overall improvement of quality and productivity. The people
dispatched to and learned in Japan at the government expense also played an important role in
industrialising Malaysia.
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Japan
Productivity development was led by the private
sector in Japan. It started soon after the World
War II. At that age, many Japanese companies
produced cheap copy products. There were many
conflicts between employers and workers about
low wages and poor working conditions.
Some business leaders came to realise that they
needed to produce quality products at competitive prices for competing in the global market. They visited
European and American countries to learn “productivity movement” and scientific management.
Based on this experience, they established two non-profit private organizations in cooperation with the
government and academic sector: The Union of Japanese Scientists and Engineers (JUSE) and Japan
Productivity Center (JPC) These organizations played important roles in quality and productivity
development and human resource development for the Japanese industries.
JUSE was established in 1946. It introduced Statistical Quality Control (SQC) to Japan by inviting Dr
Deming to give lectures on SQC at many cities all over the country in 1950. JUSE established Deming
Prize for quality companies and products in 1951.
Figure 8: Dr. Deming (right in the left picture) and Deming Prize (right)
JPC was established in 1955. At that age, some people thought in the mistaken belief that productivity
development would lead to unemployment and exploitation. To avoid misunderstandings, JPC established
three “Guiding Principles of Productivity Movement”:
- Productivity improvement will increase employment in the long run;
- Labour and management must cooperate; and
- The fruits of improved productivity must be distributed fairly among management, labour, and
the consumer.
Figure 7: Labour movement in Japan after WW Ⅱ
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Both JUSE and JPC had a hard time to get support from trade unions. They took a counterplan to invite
both employers and workers to the trainings and seminars on productivity and tried to convince them that
improved quality and productivity would lead to competitiveness of their company, and thus to prosperity
and welfare of workers. This experience of JUSE and JPC suggests that cooperative employer-worker
relationship was not derived from Japanese culture unlike a popular generalization, but it was created and
fostered by Japanese business leaders.
Quality Control Circle (QCC) was an important
factor for quality and productivity development. It
was developed by Dr. Ishikawa in 1962. He thought
it was necessary for solving problems and
improving quality and productivity to involve and
cooperate with workers. Toyota group was one of
the first examples to succeed in QCC activities
(Figure 9).
In the 1970s, people began to realize that high
quality and productivity could not be achieved by
the improvements at the production lines alone. They were increasingly aware of the need for the
improvements in the whole process of R&D, product design, procurement, transportation, inventory
management, sales, training and so forth. The idea of Total Quality Control (TQC) was thus developed.
Quality was considered as a fruit of interrelated activities of various sections of a company and of external
factors, including suppliers and customers.
In 1980, a turning point was marked by a TV documentary program on the Japanese high-quality products
broadcasted by NBC, an American TV channel. This program aroused great interest at the quality and
productivity management in Japan. Technical terms such as Kaizen, 5S and TQC became known to the
world, accordingly. Kaizen is the Japanese word for improvement. It refers to activities that continuously
improve all functions and involve all employees from the CEO to the assembly line workers. 5S is a
workplace organization method that uses a list of five Japanese words: seiri, seiton, seiso, seiketsu, and
shitsuke. They have been translated as “Sort”, ”Set In Order”, ”Shine”, Standardize” and ”Sustain” The list
describes how to organize a work space for efficiency and effectiveness by identifying and storing the
items used, maintaining the area and maintaining the area and items, and sustaining the new order.
In summary, private sector organizations like JUSE and JPC had a key role in quality and productivity
development in Japan. People trained by these organizations formed a basis for quality and productivity
development in individual companies they worked.
Figure 9: Writing Fishbone Chart at a Toyota
factory for identifying causes of defects
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Discussion Questions and Possible Points of Discussion
Those described below are examples of discussion questions.
After the slideshow, the participants exchange opinions on the slideshow: how Malaysia and Japan
addressed the issues on awareness of business people, budget constraints, and human resources for
example, which are linked to the next Group Session.
In the Introduction of Group Session, Participants are expected to introduce among others country profile
of respective countries.
Question 1. Current Problems and ideas: What problems are there in the quality and productivity
development of your country and what ideas do you have for addressing the problems?
Each participant fills out a table entitled “Country Profile of Productivity Development” in the handout for the
participants.
Example answers:
Table: Country Profile of Productivity Development
Name of
country
Name of the
organizations in
charge of
productivity
development
Leader/Advocator
of productivity
development
Current problems Ideas for
addressing the
problems
Country A XX Productivity
Authority
President Low awareness of
business people
Limited budget
Send business
leaders to foreign
countries for
benchmarking
To create
membership to
earn money for
expanding seminar
opportunities
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Country B Productivity
Development
Corporation
CEO
Need to raise 50% of the
total budget by
themselves
Difficulties in finding good
advisors
Membership
Awareness
seminar
Free trial
consulting
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In the Group Discussion of Group Session,
⚫ Step 1: Choose a rapporteur. Step 2: The participants brainstorm on the above Question 1 with a focus on identifying current problems and ideas for addressing the problems in the table.
⚫ Step 3: Participants in the respective groups exchange their experience and ideas with special reference to the Questions 2, and 3.
Question 2. Next step at national/organisational level: What are your ideas for improvement at the national
and/or organizational levels?
Example answers and relevant issues for discussion:
- Raising awareness of top management and labour leaders on productivity and quality
- Creating/Strengthening organization to promote productivity improvement
- Intensifying the training of managerial staff in productivity
- Strengthening collection, analysis and diffusion of data relevant to productivity
- Promoting international exchange of the experience in productivity improvement
Question 3. For the sustainability: What do you think necessary to sustain productivity movement?
Example answers and relevant issues for discussion:
- Generating profits for future investment
- Advocacy/ Campaign for social awareness
- Trainings of managers
- Introduction of productivity in compulsory education
- Trainer training
- Establishment of monitoring system
- Better treatments such as a higher salary and a better work environment
- Appropriate incentive mechanisms like pay-raise, performance bonus, promotion, etc.
- Fair evaluation system
- Monitoring system
- Introduction of group activities
In the Plenary session, each rapporteur presents the results of group discussion by using the table.
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After this Initial Session, the participants receive the training programme bearing the next step and the
sustainability identified in the Question 2 and 3 in their mind.
In the Action Plan Presentation, the participants revisit the table of handout and the big blank papers; review
any changes or new ideas on the next step and the sustainability; and identify concrete actions which each
participant can implement at individual level.
END
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3. List of Interviewees
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