Proposed Wage Policy Govt S Biggest Risk Says Rafizi

---

 
Economy minister Rafizi Ramli said the proposed wage policy would reward rather than penalise employers. (Bernama pic)KUALA LUMPUR: The “biggest risk” the government has taken is to talk about wages, says economy minister Rafizi Ramli.
Rafizi said the prevailing approach was to leave wage determination to market forces but that this was no longer suitable as the median monthly wage for formal sector workers stood at just RM2,600, a figure only slightly above the poverty line.
Currently, the poverty line is set at RM2,208 while a household is deemed hardcore poor if its monthly income is less than RM1,169.
“And half of all Malaysian workers earn only slightly more than the minimum wage,” he said in launching the World Bank’s Malaysia Economic Monitor (MEM) October 2023 edition here today.
The country’s minimum wage is set at RM1,500, but there have been persistent calls to raise this figure to more than RM2,000.
As such, Rafizi said the government was committed to implementing the progressive wage policy.
“We designed it so that it rewards rather than penalises employers and it keeps a close eye on the productivity growth of workers, which is a condition for this policy,” he said.
“My main objective in the near future is to usher in much better and equitable labour market dynamics so that companies are forced to pay better to get better talents.”
Previously, Rafizi said the progressive wage policy was targeted to roll out in either April or May next year.
On Aug 7, Prime Minister Anwar Ibrahim said the government’s proposed progressive wage policy would be voluntary, incentive-based and productivity-linked.
Anwar had said the matter would be brought to the Cabinet for further deliberation on its gradual implementation and the funds needed for incentives following engagements with stakeholders.
Rafizi had previously said employers had reacted positively to the government’s progressive wage policy. - FMT

---