The discussion and engagement process has begun with various stakeholders

THE government is looking in principle at the policy for a progressive wage system in Malaysia, and the discussion and engagement process has begun with various stakeholders, Economy Minister Rafizi Ramli said.

He added that this is among the policies being studied by his ministry as it is in line with the 12th Malaysia Plan’s (12MP) aim that the ratio of wage and remuneration from the revenue given to workers be enhanced to 40% from the current level of about 36%.

“We will bring the discussion to the appropriate government forums at a date to be fixed later,” he told a media conference after officiating the “UK-Malaysia Clean Growth Handbook” today.

Rafizi said the government wants to ensure the policy framework will be sustainable and can be implemented positively whereby both employees and employers will enjoy the benefits.

“This issue needs to be discussed and considered comprehensively as we need to weigh the needs of the government and the economy.

“Wages should rise periodically according to the capability of companies so that it does not impact them adversely,” he added.

He said the government is taking the policy seriously and wants it to be developed collaboratively with the participation of various ministries, including economy, finance, human resources, and investment, trade and industry.

Meanwhile, Rafizi said the government was optimistic about the upcoming announcement on Malaysia’s GDP growth in the first quarter of the year.

“We hope that within a year or two, we can bring the country’s economy back to a balanced path while strengthening the government’s financial position,” he added — Bernama