Corporations profit, yet private sector workers' wages are stagnant

Corporations profit, yet private sector workers’ wages are stagnant

Corporations profit, yet private sector workers' wages are stagnantPrime Minister Datuk Seri Anwar Ibrahim urged private companies that recorded large profits to follow in the government’s footsteps in improving the workers’ salary scheme as announced in Budget 2024.

Speaking at a monthly meeting with members of the Prime Minister’s Department (JPM), Anwar, who is also the Finance Minister, said that he received complaints from workers in the sector. They claimed that their salary rates did not change even though employers recorded good results, according to FMT.

“I also asked the private sector (to study salary rates because) some people complained that the company made a profit of RM400 million a year. But the workers’ wages did not increase at all,” he said.

“So I hope the ‘signal’ given by the government to give recognition to civil servants is also welcomed by the private sector. Especially those that record good profits.

“Give a little extra (salary) that is reasonable in the current situation.” He said, referring to the government’s move to review the Public Service Remuneration System (SSPA). Including the provision of an initial incentive of RM2,000 to civil servants grade 56 and below through the 2024 Budget announced last Friday.


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Anwar admitted that the announcement regarding the incentive surprised the top leadership of the public service.

“No one considered this as a possible thing in the state of the government’s financial constraints now. And even KSN was surprised by that amount (in fact) the Ministry of Finance did not propose to that extent.

“… but I think in a broader framework because this study of the retirement system has not been done for 10 years,” he said.

Thus, he asked that the study being drafted be carried out carefully. Considering the views of staff in departments and sectors that are relatively behind.

“I want all the conclusions to reach our table when we discuss at the highest level,” he said. 

He hoped the study would be completed by the middle of next year.

“We will pay more attention because it is unreasonable to expect performance to increase, (productivity) to be high. But the wage rate does not increase.”

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