KUALA LUMPUR: A study on wages initiated by the Human Resources Ministry, has revealed that almost 34% of about 1.3 million workers earn less than RM700 a month, below the poverty line of RM720 per month.
Its minister Datuk Dr S. Subramaniam said the National Employment Return study last year 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 a World Bank study that found that the wage trend in Malaysia had recorded only an annual 2.6% growth 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 yesterday.
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, relying instead on unskilled foreign workers,” he noted.
Dr Subramaniam said he would table his ministry’s proposal on a national minimum wage to the Cabinet by October.
However, he said the ministry had yet to decide if there should be a national, regional or sectoral minimum wage.
There were differing views on the proposal where some felt the implementation of minimum wage would lead to erosion of competitiveness, wage spirals and inability to narrow the gap between the rich and poor, while others felt it would increase productivity and quality of workers. — Bernama
Copy and Without Edit from 6/8/2010
Link: http://thestar.com.my/news/story.asp?file=%2F2010%2F8%2F6%2Fnation%2F6810213&sec=nation
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