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Human Resources Minister V. Sivakumar said the government wants to ensure a sustainable policy framework, whereby both employees and employers will enjoy the benefits.
Malaysia is looking into the possibility of introducing a policy for a progressive wage system, affirmed Human Resources Minister V. Sivakumar.
Following his attendance at the 111th International Labour Conference (ILC), he shared that the government wants to ensure a sustainable policy framework that can be implemented positively, whereby both employees and employers will enjoy the benefits.
Economy Minister Rafizi Ramli had also earlier supported a similar sentiment that the government is looking, in principle, at a sustainable policy for a progressive wage system in Malaysia.
According to Minister Rafizi, as cited in Malay Mail, the discussion and engagement process regarding the system has begun with various stakeholders. It is among the policies being studied by the Ministry of Economy, as it "aligns with the 12th Malaysia Plan’s aim to enhance the ratio of wage and remuneration from the revenue given to workers to 40% from the current level of about 36%."
It will be broadly developed collaboratively among the Ministry of Economy, Ministry of Finance, Ministry of Investment, Trade and Industry, and the Ministry of Human Resources.
"This issue needs to be discussed and considered comprehensively not only at the policy level as we need to weigh the needs of the government and the economy, so wages should rise periodically in accordance with the capability of companies so that it does not impact them adversely," the Minister was quoted as saying.
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