ALOR STAR: The government's recent announcement to review civil servants' wage schemes and implement a progressive salary system is a significant step towards addressing Malaysia's economic structural issues.
Economy Minister Rafizi Ramli said wage-related matters were among the issues that needed to be resolved, considering the large discrepancy between income levels and the increased cost of living.
Therefore, Rafizi said the government needed to intervene, especially in matters related to policies, to assist the people.
"This is not an option because if wages do not increase periodically to address the rise in prices of goods, the existing problems will never be resolved, even with the efforts being made to address the issues of the (increasing) prices of goods and inflation.
"When Prime Minister Datuk Seri Anwar Ibrahim and I discussed this, we realised everyone will face constraints, whether it is the government, private sector, employers, or even the media, who might say that we do not have the funds.
"These constraints will exist indefinitely, but at the same time, we need to find ways to initiate steps to solve the problems faced by the people.
"Economic governance is not just about bringing in billions or trillions of ringgit of investments into the country, but it also involves the issue of people's income," he said at a press conference after participating in the Jelajah Madani at Suka Menanti here today.
Yesterday (July 7), Anwar said the move to review the salary scheme of civil servants was made after considering that there had been no increase given in their salary schemes for a long time. https://www.nst.com.my/news/nation/2023/07/928372/pm-cabinet-discuss-rev...
Anwar, who is also finance minister, said the review would factor in the current salary scheme, which is deemed too low.
Rafizi said it was time for that matter to be discussed following positive economic developments in the country, especially concerning the decreased inflation rates, increased economic growth and high influx of investments.
"Previous government administrations found it hard to discuss wage matters because they involve payments. When you have to pay more, there is less money for projects, and when projects are reduced… you get what I'm saying, right?
"But as a country, we cannot have no wage increase targets and just let it be 'do as you please'.
"If that happens, people's wages will not increase. I am touched to see how the prime minister is committed to this issue, even though he knows it is hard to resolve. It encourages me to truly focus on the matter," he said.
He added that despite its unpopularity among employers in the private sector, he stressed that the progressive wage policy was a necessity.
"I acknowledge that there will be constraints both in the public and private sectors, but it is the government's responsibility to find a way to ensure the initiation of progressive wage growth.
"If we don't address this, the cost of living issue will persist, regardless of whatever government is elected," he added.
Rafizi stressed that eradicating poverty would remain the government's top priority, while assuring people that other economic issues like attracting investors would be addressed.
"The primary focus is on addressing hardcore poverty. We need to prioritise helping this first by creating more jobs through agriculture and entrepreneurship. Our immediate attention is on addressing the matter of income.
"At the same time, we will concentrate on investments and other areas.
"If we solely focus on just attracting investors, typically in Malaysia, the wealth generated doesn't reach the people, resulting in the rich getting richer while the money fails to reach the general population."
