Progressive Wage Policy In Malaysia Will Be Handled Carefully



Rafizi Ramli, the Minister of Economy, stated that when it comes to the implementation of the progressive wage policy, the government will take into consideration the employment opportunities available to workers as well as the current status of the economy in Malaysia.

Specifically, he explained that this was due to the fact that the implementation of the program was voluntary and contained incentives from the government.

It is not possible for us to impose things arbitrarily, such as a minimum wage requirement, because we are also required to take into consideration the capabilities of businesses, employers, and the economy as a whole. It is actually micro, small, and medium enterprises (PMKS) that are the main employers in the country, and 97% of the business organizations in our country are PMKS, as Rafizi said.

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According to his explanation, “If we make it mandatory, some (employers) will go out of business, and some will lose their jobs, so we have to strike a balance.” He went on to clarify that there was a need to take into account the capabilities of employers and incentives in a voluntary motion.

After presiding over the Grant Presentation Ceremony that was held as part of the People’s Income Initiative (IPR) program program and the Townhall Session that was held with the Student Leadership of the Universiti Teknologi Mara (UiTM) Selangor branch at UiTM Puncak Alam, Rafizi made this statement.

It is not simply a problem of money; rather, it is also a matter of how we (the government) wish to urge firms to gradually raise pay. This is a separate challenge that the progressive wage strategy faces.

Earlier, Rafizi, through his ministry, presented a grant to the UiTM Student Affairs Division in the amount of RM 6,961,500 (US $1,499,839.16) in order to carry out two projects. These projects include the implementation of mapping and monitoring of the People’s Income Initiative (IPR) programs, as well as the organization of a financial literacy course for IPR participants that will be conducted by the UiTM Selangor Branch.

According to the Malay Mail, the execution of the mapping and monitoring of the IPR program is a poverty census. The purpose of this census is to devise appropriate activities to enhance the income of the participants so that they can pass the poverty line. The census involves roughly 1,400 heads of families in four different states.

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