Thursday, September 05, 2024

PM Anwar Ibrahim:- 'foolish' praise (or 'self praise') for Khazanah(under Finance Minister) for their RM3k MINIMUM WAGE - Minimum Wage RM3,000 for all government companies, GLCs and government project holders - and every worker in Malaysia?

Another foolish praise for Khazanah for having a Minimum Wage of RM3,000. Anwar Ibrahim is the Prime Minister and Finance Minister of Malaysia. Was it not 'SELF-PRAISE' for after all Khazanah is directly under the government, who can set minimum wages and working conditions...

Khazanah Nasional Berhad is Malaysia’s sovereign wealth fund. Incorporated as a public limited company by Shares on 3 September 1993 and commenced operations in 1994, we are owned by the Minister of Finance (Incorporated), with the exception of one share held by the Federal Lands Commissioner (Incorporated).​
When did Khazanah set a Minimum Wage of RM3,000? Was it Anwar Ibrahim's doing, or was it done whilst under an earlier government Finance Minister? Did it happen, when Ismail Sabri, Muhyiddin Yassin, Mahathir, etc was Prime Minister? Since, Anwar just praised Khazanah for having its own MINIMUM Wage of RM3,000, more likely than not it was not Anwar that caused Khazanah to set the RM3,000 Minimum Wage...Mmmm

Now, the Malaysian government owned companies, GLCs(Government Linked/Controlled Companies), and even companies who have or got government contracts/projects can easily be required to have a Minimum Wage for all workers(including 'outsourced' workers) a Minimum Wage of RM3,000, do they now. If not, Prime Minister Anwar Ibrahim and his PH-led 'Unity' government has the power and ability to do so NOW - What is Anwar waiting for?

Does FELDA give its plantation workers a Minimum Wage of RM3,000? Does MAS, MAHB or other Statutory Bodies have a Minimum Wage of RM3,000?

Everyone is still waiting for the NEW long overdue announcement of the Minimum Wage by the government? 

'The last time the government reviewed the minimum wage was in May 2022, increasing it from RM1,200 to RM1,500.' thus, the Minimum Wage should have been increased latest by May 2024. Remember, the law states that Minimum Wage should be reviewed at least once in every two years. At least means, that Minimum Wage can be reviewed any time when needed - and the government(including Anwar Ibrahim's government) ought to have done so when cost of living went up...It should have been done early 2023..

Section 25  Council to review minimum wages order (NATIONAL WAGES CONSULTATIVE COUNCIL ACT 2011)

(1) The Council shall, at least once in every two years, review the minimum wages order.

Hence, the BLAME lies with Human Resource Minister Steven Sim, and of course PM Anwar. 

When it come to MINIMUM WAGES - the 'trick' of lumping every employer together(including those with very small businesses like sundry shops, market vegetable/meat sellers, owners of business in smaller towns/rural areas is UNFAIR as many of these do not earn enough to be able to increase wages of their workers - for them, maybe a PROFIT SHARING scheme should be advocated, requiring them to pay their workers at least 30 percent of monthly profits.

For MNCs, TNCs, Fast Food Places, Construction, Plantation Companies, {i.e. big companies with annual profits more than RM100k), the MINIMUM WAGES should be high enough to support the livelihood of workers(working 8 hours a day or 40 hours a week) - based on the BNM estimation, it should at the very least be RM3,000 or more. 

BNM governor Muhammad Ibrahim said people should be paid so they could live comfortably. The central bank estimates that the living wage in Kuala Lumpur for a single adult is RM2,700, a couple without child RM4,500 and couple with two children RM6,500. “But it doesn’t mean that everyone should be paid according to these numbers. It’s a number that equates the living standards in Kuala Lumpur,” - - FMT News, 29/3/2018

That figure was given by BNM in 2018, based on research using data in 2017. Now, it will be much higher - as cost of living has sky-rocketed, including cost of food items at the market, ...What is the Central Bank's estimate for 2024(7 years later) - now, it may be RM3,700 for a single adult?

Malaysia should be setting different MINIMUM WAGES for different regions - the cost of living in KL/Klang Valley is higher than cost of living in smaller towns/rural areas. 

MINIMUM WAGES also should be based on the kind of work. For manual labour in hot sun, it should be MUCH HIGHER thus also attracting more Malaysians to take up these jobs - we cannot forever depend on migrant workers. Would a HIGHER MINIMUM wages for plantation workers, construction workers, agricultural workers, road repair workers not attract MORE Malaysian workers? 

GOOD of Anwar to urge private sector to follow and set a HIGHER Minimum Wage of RM3,000 or more.

The government steps in to set the MINIMUM Wage - but employer companies should really be setting their OWN HIGHER Minimum wages depending on their means and principles.

Sadly, in Malaysia, many employers use the government set Minimum Wage as the wages they pay their employees... how unjust. The workers wages should be linked to the INCOME/PROFIT made for without workers, the employer CANNOT operate or earn. Should not employers, as a rule of thumb give workers at least 30-40 percent of the income/profits?

Wages increase with TENURE - but sadly, in Malaysia, employers tend to use 'short-term employment contracts', choosing to find NEW workers rather than keeping old workers after the employment contracts end. Malaysia could very easily, by law, require all workers to be employed as REGULAR employees - this will give employment security to workers. Employers then can still TERMINATE workers by reason of serious employment misconduct or serious BREACH of the Employment Contract. If there is no more need for workers, employers can always RETRENCH. Other than that, the worker's employment is SECURE until retirement.

Another way that bad employers use, is to not employ workers, but simply use workers supplied by other 'employers' or contractor for labour. Malaysian law says that all it requires is an ORDER of the Minister to ensure all workers at any workplace are all EMPLOYEES of the Principal or owner of the workplace. 

2A  Minister may prohibit employment other than under contract of service[EMPLOYMENT ACT 1955]

(1) The Minister may by order prohibit the employment, engagement or contracting of any person or class of persons to carry out work in any occupation in any agricultural or industrial undertaking, constructional work, statutory body, local government authority, trade, business or place of work other than under a contract of service entered into with-

(a) the principal or owner of that agricultural or industrial undertaking, constructional work, trade, business or place of work; or

(b) that statutory body or that authority.

(2) Upon the coming into force of any such order, the person or class of persons employed, engaged or contracted with to carry out the work shall be deemed to be an employee or employees and-

(a) the principal or owner of the agricultural or industrial undertaking, constructional work, trade, business or place of work; or

(b) the statutory body or local government authority,

shall be deemed to be the employer for the purposes of such provisions of this Act and any other written law as may be specified in the order.

Sadly, Minister Steven Sim is YET TO DO THIS? Does he not care for workers? Prime Minister Anwar Ibrahim can make sure this happen.

One observation about PM Anwar Ibrahim is that he sometimes makes very POSITIVE praiseworthy public pronouncement that are consistent with HUMAN RIGHTS and JUSTICE ...BUT then there is NO FOLLOW-UP Actions when he as the Prime Minister has the power to do so...

Expectation of MINIMUM WAGE increase was as soon as Anwar Ibrahim became PM and came into power...Now, even after May 2024(2 years after the last increase), there is STILL No Increase in MINIMUM WAGE. And this government is removing subsidies, and not introducing subsidies even for essential food items >>> resulting in an ever growing cost of living, and workers suffering because of low wages.

The Malaysian Government is introducing the 'Progressive Wage System', which I believe is rather foolish. Giving EMPLOYERS cash incentives to cover increase of salary is rather FOOLISH - better for the government to give WORKERS directly the monies, maybe into their EPF/KWSP accounts for those earning low wages [This worker welfare scheme should be a RIGHT for workers that is ENACTED in LAW. A government policy alone is dangerous for policies change easily - unlike clear laws. Did not the government LEARN from the failings of Human Resource Development program?

The progressive wage system will involve those earning a monthly salary of between RM1,500 and RM4,999 who will be upscaled with training to receive higher wages. Employers will also be given cash incentives to cover the additional salaries.
The government should NEVER link wages to PRODUCTIVITY. Workers do the work as instructed by employers, and it is the EMPLOYERS that ought to be blamed solely for drop in productivity. So, do not link wage increase entitlement to 'productivity'.

MINIMUM WAGE should be set at RM3,000 for ALL, following the example set by  Khazanah Nasional Bhd.

If the Malaysian Government set a Minimum Wage less than RM3,000 for public and private sector workers, would not it be DISCRIMINATORY for one government owned company to have a HIGHER MINIMUM WAGE than the rest of workers in Malaysia?  

See also:-

With RM1.5 Trillion Debt, should Malaysia increase wages of 1.7 million Public Officers? Maybe only those who earn below RM4k? But increase MINIMUM Wages now for all?

 

PM Anwar praises Khazanah's RM3,000 minimum wage, urges private sector to follow

PM Anwar praises Khazanah's RM3,000 minimum wage, urges private sector to follow
Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, during his speech at the 30th anniversary celebration of Khazanah Nasional.— Bernama pic

KUALA LUMPUR, Sept 3 — Prime Minister Datuk Seri Anwar Ibrahim praised Khazanah Nasional Bhd’s move to set a minimum wage of RM3,000 per month for its employees and expressed hope that private companies will follow suit.

While acknowledging the importance of private companies making a profit, he emphasised that there should be a commitment from management to ensure the well-being of their employees.

“Yes, all companies must be profitable, but as Indonesian leader Mohammad Natsir once said, ‘Let us not, while building wealth and profits, destroy the lives and values of the workers who contribute to it.’

“There should be some understanding of human dignity and fairness, which goes beyond corporate social responsibility (CSR) as practised by Khazanah,” he said at the 30th Anniversary celebration of Khazanah Nasional here today.

Anwar noted that Khazanah’s initiative aligns with his recent announcement to adjust civil servants’ salaries so that no public servant earns less than RM2,000 per month.

Meanwhile, the Prime Minister said that the government will ensure that the landscape and map of Kuala Lumpur, from the Sultan Abdul Samad Building to Carcosa Seri Negara—a heritage and creativity zone—remain preserved as part of the nation’s cultural legacy.

Ahead of the 2025 Budget in October, Anwar said he will ensure a clear vision for initiating the development of Kuala Lumpur’s identity, which will remain intertwined with its heritage and culture.

“This will provide fresh momentum as the world pushes us to think about our future. This vision of Kuala Lumpur, stretching from the Sultan Abdul Samad Building to Carcosa Seri Negara, will highlight our heritage while integrating synergy with modern aspects, including the emerging world of AI (artificial intelligence),” he said.

Also present at the event were Finance Minister II Datuk Seri Amir Hamzah Azizan and Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz. — Bernama, Malay Mail, 3/9/2024

Pay living wage, Bank Negara tells bosses

FMT Reporters
 | March 29, 2018
The central bank says while minimum wage is still relevant, people should be paid so they can live comfortably. 

More than a quarter of households in Kuala Lumpur are earning below the living wage.

PETALING JAYA: Bank Negara Malaysia (BNM) has urged employers to consider the living wage, not just the minimum wage, when rewarding their workers.

The central bank defines living wage as the level of income needed for a household to afford a minimum acceptable standard of living.

BNM governor Muhammad Ibrahim said people should be paid so they could live comfortably.

The central bank estimates that the living wage in Kuala Lumpur for a single adult is RM2,700, a couple without child RM4,500 and couple with two children RM6,500.

“But it doesn’t mean that everyone should be paid according to these numbers. It’s a number that equates the living standards in Kuala Lumpur,” The Edge Markets quoted him as saying in conjunction with the release of the bank’s 2017 annual report.

“The minimum wage is still relevant. But what we are trying to advocate here is that when we pay people, we pay people decently. And for Kuala Lumpur, this is the decent rate. It’s more of a guideline for employers.”

It is estimated that more than a quarter of households in Kuala Lumpur are earning below the living wage.

In a study titled “The living wage: Beyond making ends meet”, BNM said the wage growth in the bottom 40% of households by income (B40) is just enough to keep pace with the rise in the cost of living.

BNM’s annual report said although the B40 group’s small increase in average monthly income over the last few years might be sufficient to keep up with inflation, it falls short of achieving a minimum acceptable standard of living.

The study said a living wage could only be effective if it was set at a realistic and sustainable level, adding that a higher wage should be commensurate with higher productivity.

It warned that persistently weak productivity growth risked lower wage growth, which could hamper the ability of households to have a minimum acceptable living standard. - FMT News, 29/3/2018

 

 

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