WITH pushback from the employers’ groups over raising the minimum wage, Parti Sosialis Malaysia (PSM) urged the Government to remains steadfast in its commitment to the pledge.
Its deputy chairperson S Arutchelvan said that the minimum wage policy was enacted because of the failure of the free market system, in addition to its abuse by strong employers’ lobby.
“If we didn’t allow cheap migrant labour to enter the market, wages will be automatically high in the country.
“But the Malaysian Employers Federation (MEF) has been constantly lobbying the Government to get more migrant labour for them as it goes hand in hand with their cheap labour policies.
“Because of this manipulation in the market forces, the employers should not complain when minimum wages are increased from time to time,” he stated in a statement.
Earlier this month, Prime Minister Datuk Seri Ismail Sabri Yaakob announced that the Government would raise the minimum wage to RM1,500, come May 1.
However, the decision has received pushback from several employers, with the MEF urging the Government to delay its implementation as many micro, small and medium enterprises (MSMEs) are still struggling to survive the fallout of the pandemic.
“Generally, the MSMEs are still grappling with the efforts to recover their businesses due to the devastating impacts of COVID-19 and the big floods in late December 2021.
“The decision to postpone the RM1,500 minimum wage implementation will make them more sustainable and more resilient.
“MEF hopes that the Human Resources Minister Datuk Seri M Saravanan, and the Entrepreneur Development and Cooperative Minister Tan Sri Noh Omar will consult stakeholders on the mechanisms to allow the MSMEs to postpone the implementation of the RM1,500 minimum wage,” MEF president Datuk Dr Syed Hussain Syed Husman was reported as saying on March 21 by The Edge.
Official data backs higher minimum wage
Touching on the matter, Arutchelvan said that raising the minimum age to RM1,500 was not a massive hike given several official reports have indicated that the minimum wage for those living in Kuala Lumpur should be higher than the amount announced.
Citing a Bank Negara Malaysia report on 2016, the central bank had mentioned that the living wage for a single adult living in Kuala Lumpur should be at a minimum of RM2,700, back then itself.
“The report also indicated that a couple should be earning a minimum of RM4,500 and a family of two children should be earning at least RM6,500,” he noted.
Using the Government’s own formula under the technical committee on wages, taking into account the poverty line, consumer price index (CPI), production growth and unemployment rate, the PSM leader said that the minimum wage in Malaysia should be at RM2,017.
“And the people should know that within Association of Southeast Asian Nations (ASEAN), Malaysian workers’ purchasing power is the lowest in the region.
“This is because local workers’ purchasing power is at 12.62% (10.45% in 2018) compared to the nation’s per capita income,” Arutchelvan quipped.
Despite data itself calling for higher wages for Malaysian workforce, he reiterated that the Malaysian Trades Union Congress (MTUC) and Congress of Unions of Employees in the Public and Civil Services have only been demanding for the minimum wage to raised to RM1,800.
“Plus, both Barisan Nasional (BN) and Pakatan Harapan Governments had promised to raise the minimum age to RM1,500 within one term,” Arutchelvan remarked. – March 26, 2022
