The role of service industry in the national economy of Malaysia Essay

Service industry plays an important role in developing national economic which is not the latest topics that are being discussed about the growth of interest in employee's job satisfaction that categorized in food and beverage industry. The food and beverage industry is one of a typical service industry and it is critical service industry around the world (Tsai, Cheng , & Chang, 2011). According to (Malaysian Economy, 2016) the statistic shows the percentage growth of 4.5% during the fourth quarter of 2015 that supported by domestic activities despite increasing in the external uncertainties. The growths of economy are steadily supported by domestic economic activity, mainly consumption spending by both private and public sectors. Thus, for private consumption especially in transport, food and beverage as well as communication resulted by increasing of 4.9% (Q3 2015 4.1%) due to higher spending during the school holidays and festive season. All the services sector continued to expanded further by 5% during the fourth quarter of 2015 (Q3 2015 4.4%). Although, the food and beverage and accommodation subsector was expanding by 6.6% (Q1 2015 7.3%) which resulted in stronger performance and subsequently to decrease during the half quarter 4 of 2015. The final service sector continue to expand further by 5.7% at quarter fourth quarter of 2015(Q3 2015 5.3%) that was driven by food and beverage and accommodation sectors. It shows that how food and beverage business has been recognized as a high potential prospect in the growth of service industry.
Although food and beverage industry seems to be developing in the surface but behind the business growth is slowing down due to the high turnover rates of employees in the service industry. It is noted that Malaysia food and beverage industry has the highest turnover rate among other industry as cited by Malaysia Employees Federal (MEF). Many businesses find it hard to retain their employees and some businesses failed because of this problems. Most businesses couldn't identify the problems that perhaps lead to employee's job satisfaction. One of the reasons stated that employees are often temporary or seasonal workers, frequently students working summer or part-time jobs. The low wages tend to alienate workers, who may leave as soon as they get a better offer.
In addition, younger generation play a significant role in turnover. Because they are more likely to leave their jobs due to the part-time job positions (Dwaikat, Queiri, & Yusoff, 2015). Students who work for part-time position may leave when they graduate from school or get internships, and some older employees may temporarily work food positions when they've been laid off or are experiencing money problems. When they get better jobs, they're more likely to leave. Small businesses interested in reducing these factors can seek workers who are looking to start careers by offering management training, full-time hours and similar benefits "Nation's Restaurant News" emphasizes that turnover tends to increase when the industry grows and the economy expands, because people are more willing to take risks to find better jobs.