KUALA SELANGOR, Jan 10 — The government will not arbitrarily allow the implementation of the progressive wage policy but will instead take into account the ability of employers and the current state of the country’s economy, said Economy Minister Rafizi Ramli.
He said this is because the implementation of the policy is voluntary and involves incentives from the government.
“We cannot impose arbitrarily, like a minimum wage order, because we also have to take into account the ability of companies, employers and the (national) economy. The largest employers in the country are actually micro, small and medium enterprises (MSMEs) and 97 per cent of business entities are MSMEs.
“If we make it mandatory, some (employers) will go out of business, some will lose their jobs so we have to balance it.
“That’s why the approach is that we take into account the ability of employers and must involve incentives from the government as well as being voluntarily,” he said.
He said this after officiating the grant presentation ceremony under the People’s Income Initiative (IPR) programme and a town hall session with the Student Leadership of Universiti Teknologi Mara (UiTM) Selangor branch at UiTM Puncak Alam, here, last night.
According to Rafizi, his ministry and the Human Resources Ministry only focus on private sector salaries, while the study of the Public Service Remuneration System (SSPA) is managed by Prime Minister Datuk Seri Anwar Ibrahim.
“The progressive wage policy has a different challenge. It’s not just a matter of money but it’s also how we (the government) want to convince employers to raise wages gradually.
“For SSPA, the government has to ensure that the financial resources are sustainable enough and that the matter is being managed by the prime minister,” he said.
Earlier, Rafizi, through his ministry, submitted a grant amounting to RM6,961,500 to the UiTM Student Affairs Division to carry out two projects, namely the implementation of mapping and monitoring of the People’s Income Initiative (IPR) programmes as well as the organisation of a financial literacy course for IPR participants conducted by UiTM Selangor branch.
The implementation of the mapping and monitoring of the IPR programme is a poverty census aimed at devising appropriate actions to increase the income of the participants in order to cross the poverty line involving nearly 1,400 heads of households in four states.
Meanwhile, the organisation of financial literacy courses for IPR programme participants aims to provide financial management knowledge and skills so that they are able to continue in order to ensure the sustainability of the economic activities they engage in.
— Bernama
