WITH the debate over raising the minimum wage still raging, a veteran public policy expert urged the Government and employers to overhaul the economic system and adapt to change.
“The reality is our poor and low-income workers are suffering from rising prices. We must do something about it and cannot ignore their plight.
“In my view, raising the minimum wage to RM1,500 is not a problem, if we really care about the welfare of poor Malaysian workers,” Tan Sri Ramon Navaratnam told FocusM.
Last week, the Government announced that it would be raising the minimum wage to RM1,500 by end of the year.
However, the announcement was met with opposition from the Malaysian Employers Federation (MEF), which stated that now is not the right time to increase the cost of doing business and the proposal would derail economic recovery.
“More efforts should be directed towards business recovery in the private sector and controlling the rising cost of products and services. We must remember that most Malaysian businesses are micro, small and medium enterprises (MSMEs), whereby 98.9% are in this group.
“So, when we talk about wages and cost, we must think of their survival and sustainability,” its president Datuk Syed Hussain Syed Husman was reported as saying.
However, Syed Hussain received brickbats from several quarters, with Parti Sosialis Malaysia (SPM) accusing the group of perpetually in opposition of the minimum wage hike, be it during good or bad times.
Excessive profits over staff welfare
Touching on the matter, Ramon said that in general, Malaysian employers are too focused on profit-making at the expense of taking little interest on their workers’ welfare and innovation.
He added that many employers also do not include their workers’ welfare aspect, when it comes to tabulating their growth.
“If we don’t adjust the minimum wage accordingly, the economy will suffer from social unrest. Therefore, I urge them to think of its long-term benefits and sustainability,” he added.
For companies that are making losses, the veteran economist urged the Government to give exemption to them, provided they can provide proof that they are genuinely making losses.
“But to say that certain companies that made exorbitant profits during the pandemic, such as the rubber glove industry, cannot implement the minimum wage policy sounds far-fetched.
“In fact, I believe such companies can afford to pay a living wage to their workers,” Ramon stressed.
On related matter, Ramon urged the Government to be bold and overhaul the nation’s economic policies; by increasing competition and applying meritocracy.
He added that the Government must be resolute on this and not bow to vested interest who are only thinking about how to win the next election.
“One thing we can look into is how to boost our production capacity. In my view, we could have done better in this aspect,” Ramon remarked. – Feb 8, 2022
