THERE is not even a broad consensus on whether the minimum wage should be introduced in the country, despite its mandatory status.Even though there is legislation on the minimum wage, its enforcement remains problematic among employers who rely on cheap and docile labour.While the issue of the minimum wage has not been resolved, there are talks about introducing a living wage for workers and their families in urban areas.In 2017, Bank Negara Malaysia (BNM) suggested a living wage for urban areas. A wage of RM2,700 for a single person, RM4500 for a couple and RM6,500 for a couple with two children.The report by BNM is something to be lauded, especially coming from an institution known for its conservatism and financial prudence. But I am not sure how the BNM can translate its recommendations into action when there is formidable opposition to the wages legislated by the government.The BNM report presents an ideal picture; it creates a sense of good feeling to think of the prospect of a living wage. Although I have not read the report, I am not sure what the criteria were chosen by BNM in arriving at the wage figures.Maybe BNM can determine whether these recommendations can be implemented in the country, particularly in urban areas.Admitted that the bare minimum legislated wage is the minimal form of protection, the government expects employees to go beyond this minimum wage framework.Malaysia might not be a fully developed country with high wages and high standards of living.However, the move towards a developed status must be predicated on the provision of talents to meet the demand of the high-end economy.The country cannot simply afford to be stagnant when there is a glaring mismatch between graduates and the demands of the private industrial and manufacturing sectors. It is fine for the government to think about the living wages suggested by BNM. There is nothing wrong with doing this.But at the same time, I think the government should be more pragmatic.I think that the bare minimum wage is something that needs to be seriously looked at. Rather than having our minds in the clouds, let us proceed in the direction of increasing the bare minimum wage.The BNM report might be enticing, but the government might have trouble convincing reluctant employers of the concept of a living wage. — March 3, 2023
Prof Ramasamy Palanisamy is the state assemblyperson for Perai. He is also deputy chief minister II of Penang.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
