KUALA LUMPUR, July 13 — The Malaysian Employers Federation (MEF) today questioned Economy Minister Rafizi Ramli’s involvement of the government’s plans for progressive wages, claiming it is not within his ministry’s purview.
MEF president Datuk Syed Hussain Syed Husman said policies related to wages are the responsibility of the Human Resources Ministry and not the economy ministry.
“The economy minister should instead be sharing with businesses and the rakyat plans to improve the economy, thereby raising the standard of living.
“Thus far, MEF has yet to see any such concrete plans from the minister to improve the economy,” he said in a statement.
Syed Hussain also said that salary increments should not be mandatory as market forces would determine the right price of labour.
“Industries all over the world have always relied on market data to determine compensation and benefits. The government should not dictate what should be done in terms of rewarding employees,” he said.
He said the government must first lay down the proper and adequate foundations for a progressive wage model to be implemented by discussing and consulting with relevant parties and setting up committees consisting of unions, employers and government ministries and agencies.
“A progressive wage model should not only be about increasing salaries but ensuring improved productivity and profits as well as better products and services at affordable prices for consumers,” he said.
Syed Hussain said if the federal government were to proceed with making annual salary increments mandatory, it should provide grants or allocations to employers to meet the government’s determined salaries.
Last Sunday, Rafizi said he hoped the private sector will also be committed to helping the government realise its policy on progressive wage increases to parry the rising cost of living.
Rafizi said the government needs a comprehensive policy involving the private and public sectors as it is now its priority to bridge the significant gap between the growth of wages and the increase in the cost of living.
Rafizi had also indicated plans for progressive wages would entail making annual salary increments mandatory.
