STUDY: ALMOST 34 PER CENT WORKERS IN M`SIA EARNING BELOW POVERTY LINE

KUALA LUMPUR, Aug 5 (Bernama) –- A study on wages in the country, initiated by
the human resources ministry, has revealed that almost 34 per cent of about 1.3
million workers earned less than RM700 a month -- below the poverty line of
RM720 per month. (US$1=RM3.17)

The minister, Dr. S. Subramaniam, said the National Employment Return study last
year stressed on the need for wages to be increased, especially after the
ministry discovered that it was difficult to rely on market forces alone.

He also cited the World Bank study which found that the wage trend in Malaysia
had recorded only an annual 2.6 per cent growth during the past 10 years, as
compared to the increasing cost of living during the same period.

"The government agrees that wages will have to be increased," he told reporters
here Thursday.

He said the influx of foreign workers was among several reasons why wages did
not increase for the past 10 years.

"Skilled jobs are synonymous with higher wages. However, in many instances,
employers do not pay for skills, instead, relying on unskilled foreign workers.
This has also largely dampened wage growth,” he noted.

On Wednesday, after closing a workshop on minimum wage, Dr Subramaniam said he
would table his ministry’s proposal on a national minimum wage to the Cabinet by
October.

At the workshop, there were differing views on the proposal where some felt the
implementation of minimum wage would lead to erosion of competitiveness, wage
spirals and unable to narrow the gap between the rich and poor in the country,
while others felt it would increase productivity and quality of workers.

The minister said, should the government agreed to a minimum wage, new laws
needed to be introduced to cover all aspects such as coverage, authority,
advisory body, implementation and so on.

There would also be a need to form a national council on minimum wages to ensure
the smooth implementation of the minimum wage, he added.

The ministry was expected to complete its report on the national minimum wage in
four months before tabling it to the Cabinet, said Dr Subramaniam, adding that
his ministry had yet to decide if there should be a national, regional or
sectoral minimum wage.

"It is up to the Cabinet to give us the direction...the minimum rate would also
have to be worked out."

A poll initiated by the ministry to get feedback on the minimum wage revealed
that of the 434 respondents, 76 per cent agreed that the government should
implement a minimum wage for all sectors.
-- BERNAMA