KUALA LUMPUR: A study by the Human Resources Ministry on wages in the country revealed that almost 34 percent of about 1.3 million workers earned less than RM700 a month, below the poverty line of RM720 per month.
Human Resources Minister Dr S Subramaniam said the National Employment Return study in 2009 stressed on the need for wages to be increased, especially after the ministry discovered that it was difficult to rely on market forces alone.
He also cited the World Bank study which found that the wage trend in Malaysia had only recorded a 2.6 percent growth annually during the past 10 years compared with the increasing cost of living during the same period.
“The government agrees that wages will have to be increased,” he told reporters here today.
He said the influx of foreign workers was among several reasons why wages did not increase for the past 10 years.
“Skilled jobs are synonymous with higher wages. However, in many instances, employers do not pay for skills, instead, relying on unskilled foreign workers. This has also largely dampened wage growth,” he said.
Yesterday, Subramaniam said, after closing a workshop on minimum wage, that he would table his ministry’s proposal on a national minimum wage to the Cabinet by end-October this year.
At the workshop, there were differing views on the proposal where some felt the implementation of minimum wage would lead to erosion of competitiveness, wage spirals and unable to narrow the gap between the rich and poor in the country, while others felt it would increase productivity and quality of workers.
The minister said should the government agreed for a minimum wage, new laws would have to be introduced to cover all aspects such as coverage, authority, advisory body, implementation and so on.
A National Council on Minimum Wages would also have to be formed to ensure the smooth implementation of the minimum wage, he said.
The ministry was expected to complete its report on the national minimum wage in four months after which it will be tabled to the Cabinet, he said.
Subramaniam said his ministry has yet to decide if there should be a national, regional or sectoral minimum wage.
“It is up to the Cabinet to give us the direction,” he said, adding that the minimum rate would also have to be worked out.
A poll initiated by the ministry to get feedback on the minimum wage revealed that of the 434 respondents, 76 percent agreed that the government should implement a minimum wage for all sectors.
He also cited the World Bank study which found that the wage trend in Malaysia had only recorded a 2.6 percent growth annually during the past 10 years compared with the increasing cost of living during the same period.
“The government agrees that wages will have to be increased,” he told reporters here today.
He said the influx of foreign workers was among several reasons why wages did not increase for the past 10 years.
“Skilled jobs are synonymous with higher wages. However, in many instances, employers do not pay for skills, instead, relying on unskilled foreign workers. This has also largely dampened wage growth,” he said.
Yesterday, Subramaniam said, after closing a workshop on minimum wage, that he would table his ministry’s proposal on a national minimum wage to the Cabinet by end-October this year.
At the workshop, there were differing views on the proposal where some felt the implementation of minimum wage would lead to erosion of competitiveness, wage spirals and unable to narrow the gap between the rich and poor in the country, while others felt it would increase productivity and quality of workers.
The minister said should the government agreed for a minimum wage, new laws would have to be introduced to cover all aspects such as coverage, authority, advisory body, implementation and so on.
A National Council on Minimum Wages would also have to be formed to ensure the smooth implementation of the minimum wage, he said.
The ministry was expected to complete its report on the national minimum wage in four months after which it will be tabled to the Cabinet, he said.
Subramaniam said his ministry has yet to decide if there should be a national, regional or sectoral minimum wage.
“It is up to the Cabinet to give us the direction,” he said, adding that the minimum rate would also have to be worked out.
A poll initiated by the ministry to get feedback on the minimum wage revealed that of the 434 respondents, 76 percent agreed that the government should implement a minimum wage for all sectors.
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