RISE IN MINIMUM WAGE AMONG HIGHLIGHTS
Increase contributes to reduction in income inequality
KUALA LUMPUR firstname.lastname@example.org
THE increase in minimum wage is among the highlights of last year’s Human Capital Development (HCD) Strategic Reform Initiative (SRI).
The report stated that the increase in minimum wage had contributed to a reduction in income inequality in the country.
Malaysian Trades Union Congress (MTUC) president Abdul Halim Mansor said the enforcement of the Minimum Wage Order 2012 and the ability of a tripartite council to review legal floor wage every two years augured well for the country’s equal development.
“The National Wages Consultative Council (NWCC), comprising representatives of employees, employers, government and other experts, has been given the right to discuss and determine minimum wages, which reflect our economic conditions in different areas in the country.
“The minimum wage would not only provide more opportunities in non-urban or less developed areas, but, as a result, income equality will also provide higher purchasing power for lower-income earners.
“This means development is not only concentrated in urban areas, and people will also not be forced to move to the cities to earn a living as the standard of living in less developed areas will improve,” he told the New Straits Times yesterday.
The report stated that according to the Statistics Department, the median monthly income for the below 40 per cent of income earners recorded a compounded annual growth (CAGR) of 13 per cent between 2009 and 2014, rising from RM1,440 to RM2,629.
“CAGR for the B40 median and mean income also rose more than that of the middle 40 per cent (M40) and top 20 per cent (T20) of income earners,” it said.
HCD SRI had focused on boosting the capabilities of the local workforce, advocating diversity of workers and increasing the earning potential of lower-income earners.
Human Resource Minister Datuk Seri Richard Riot Jaem said SRI had also paved the way for small- and medium-sized businesses, which formed the backbone of the economy, to boost their business performance through the establishment of the National Human Resource Centre.
Abdul Halim Mansor