14/05/2025

WEDNESDAY | MAY 14, 2025

3 M’sia’s wage policy falling behind economic realities

Great strides in workers’ welfare, says minister KUALA LUMPUR: Malaysia has made significant progress in strengthening workers’ welfare and labour rights over the past year, with the national unemployment rate dropping to a 10-year low of 3.1%, Human Resources Minister Steven Sim said. Speaking at the APEC Human Resources Ministerial Meeting (HRDMM) in Jeju, Korea, Sim highlighted several key reforms, including a 13% increase in the national minimum wage and a 20% boost in workers’ social security benefits. “We have extended full social security protection, previously only enjoyed by our citizens, to foreign workers, legislated ILOC 155 (International Labour Organisation Convention) on occupational safety and health after 43 years, reduced previous restrictions on the setting up of labour unions and allocated up to RM10 billion for various schemes related to education and training.” He noted that more women are now entering the workforce and homemakers are covered under social security insurance for care work at home. For the first time, the median wage surpassed the RM3,000 threshold, marking a major milestone for wage growth in the country. Sim also shared his intention to table a historic Gig Workers’ Bill in the next parliamentary sitting, which aims to provide better protection and recognition for workers in the gig economy. The HRDMM is being held for the first time in 11 years. The last meeting was in Vietnam in 2014. – Bernama Over 40,000 fake contents removed from online platforms PUTRAJAYA: The Multimedia Commission, removed 10,493 pieces of fake content and 30,427 scam-related items circulating on online platforms between January and April 15 this year. Deputy Communications Minister Teo Nie Ching said statistics show that the public can no longer afford to passively read and accept information without first verifying and identifying the content. “Today, most of us obtain information directly from the internet – it is not wrong as in line with technological advancement, we are adapting to progress. “However, consuming and accepting information online requires the people to be more digitally literate as not all information received via today’s technologies can be accepted at face value,” she said during the 2025 Communications Ministry-level“Let’s Read Together” programme held yesterday. Also present were Bernama editor-in chief Arul Rajoo Durar Raj and deputy editor-in-chief (economic news service) Azlina Aziz. Teo said the Madani government is prioritising safe internet usage among children through the implementation of the Safe Internet Campaign this year. “MCMC is stepping up the campaign rollout to both primary and secondary schools, as well as all public universities nationwide by the end of the year. “It is aimed at raising awareness among students on the risks and challenges of the digital space,” she said, adding that the campaign has already been implemented in nine schools as of May 1. – Bernama Communications Ministry, through the Malaysian Communications and

Ű BY QIRANA NABILLA MOHD RASHIDI newsdesk@thesundaily.com

o Continued reliance on low-skilled industries, sluggish productivity in non-tradeable sectors and mismatch of workforce skills and market demands have eroded purchasing power and slowed growth : Academic

“The influx of low-cost migrant workers has driven wages down, made automation less attractive, and treated workers more like commodities. “With weak unions (only 6% of workers are unionised) and unchanged minimum wage rates, the issue worsens, causing wages to lag behind countries like South Korea and Singapore.” He said low-cost foreign labour, comprising 15% to 20% of the workforce, plays a major role in holding down wages, especially in plantation, construction and manufacturing sectors. “The preference for migrant workers stems from their lower wage expectations and lesser benefits requirements. “For example, the palm oil industry depends on foreign workers, which results in wages remaining constant between RM1,500 and RM2,000 per month even as global demand soars, thereby continuing low-value economic practices.” He warned that this stagnation risks locking Malaysia in the middle-income trap and limiting domestic consumption, which accounts for 60% of GDP. “The outflow of skilled talent is accelerating, with 1.7 million Malaysians now working abroad. Many professionals, especially in Singapore, cite higher wages as the main reason for leaving. “Low salaries at home reduce the motivation to upskill, which in turn holds back productivity and keeps the GDP per capita stuck at USD12,487 (RM56,191) in 2022, still below high-income levels.” He recommended urgent reforms such as linking wages to productivity, strengthening technical and vocational education and training programmes and promoting automation. He also urged the government to introduce sector-based minimum wages, provide R&D tax incentives and empower unions. “Without reforms, M’sia risks deepening its middle-income trap and losing more skilled workers to neighbouring economies,“ Mohamad Idham added. Former Bank Negara governor Tan Sri Muhammad Ibrahim previously said graduate salaries today should be between RM7,000 and RM8,000 per month if they had kept up with the 5% annual inflation.

PETALING Malaysia’s approach to minimum wage revisions remains largely reactive, despite the rising costs of housing, healthcare and education. The result is a diminished purchasing power that disproportionately affects low- and middle-income households, said Universiti Teknologi Mara Academy of SME and Entrepreneurship Development coordinator Dr Mohamad Idham Md Razak. He stressed that the country’s emphasis on capital-intensive growth, coupled with limited investment in research and development, which stands at just 1.4% of the GDP, has slowed progress towards a high-skilled, high-wage economy. “Government policies have not kept pace with the changing workforce. JAYA:

“The

current

situation

“Outdated labour laws, such as the Employment Act 1955, and weak protections for gig workers, who now account for 26% of the labour force, reflect institutional inertia.” Mohamad Idham said although nominal wages have risen from 3% to 4% annually since 2000, real wage growth averaged only 1.1% from 2010 to 2020. This, he said, lags behind the annual productivity improvement rate of 3.5% over the same period. “Manufacturing productivity saw a 60% increase between 2005 and 2019, while real wages only experienced a 25% growth.

demonstrates fundamental unfairness in how profits and capital-focused economic strategies distribute wealth.” Mohamad Idham attributed the wage stagnation to Malaysia’s economic structure over the past 40 years, citing dependence on low skilled industries, slow productivity in non-tradeable sectors and a mismatch between workers’ skills and market needs. He also said the 1980s shift to manufacturing, which focused on attracting foreign investment in low-value-added sectors, reinforced a cheap labour model.

Mohamad Idham said government policies have not kept pace with the changing workforce despite the rising costs of housing, healthcare and education. – ADAM AMIR HAMZAH/THESUN

‘Moratorium on 45-hr work week for nurses extended’ PUTRAJAYA: The moratorium on the implementation of a 45-hour work week for nurses has been extended by another month, Health Minister Datuk Seri Dr Dzulkefly Ahmad said. He said this would enable the ministry to examine and the Cabinet on July 1. “The process is in its final stage and several engagements have been held. But as I said before, I will not decide without a thorough understanding of the nursing programme and related matters. Midwife and Nurses Day 2025 celebration yesterday. On Nov 21 last year, Dzulkefly said the change in shift work hours for nurses was appropriate, subject to the Public Service Remuneration System that was implemented on Dec 1. provided under the General Orders. On nurses’ allowances that had been raised by the Malayan Nurses Union, he said the matter was still under discussion.

On March 9, the union sought a government review of all nurses’ allowances, including the RM1,000 per month regional allowance for those serving outside their home state. – Bernama

He said the 45-hour work week set through the system was essentially reduced by one hour compared to 46 hours a week as

“It is important to consider all factors so that the decision will be fair,” he told reporters after attending the national-level

understand various aspects of healthcare workers, especially welfare issues, before recommendations are presented to