MALAYSIA’S development should not be gauged on just the gross domestic product (GDP) growth and stock market but on how the people’s standard of living has improved, Prime Minister Dr Mahathir Mohamad said today.

Raising concern over the widening income gap between top executives and their employees, Dr Mahathir, who was speaking at Invest Malaysia 2019, said employers should have a stakeholder mindset when it comes to remunerating their workers.

“We don’t want a thoroughly unequal society where capital owners take too much a chunk of national income, leaving the workers or low-income households with scraps.

“So, I urge all of you to have a stakeholder mindset.

“Pay your workers better if you make more profits. We noticed that the pay for CEOs has been increasing multiple folds, but workers’ wages had been slow on the rise if not stagnant. This is not right.”

Income disparity will eventually lead to “tension and hostility” between communities who struggle with cost-of-living issues, he said.

“We cannot have one group succeeding, dominating or monopolising everything, while others lag behind.

“The gap between the haves and have-nots must be narrowed. If disparity is left unchecked, it will create tension and hostility, and eventually lead to confrontations.”

Meanwhile, the newly formed Economic Action Council had also been given the mandate to act swiftly to address pain points and identify quick wins to stimulate economic growth that could improve people’s well-being.

To ensure the sustainability of the economy, Dr Mahathir said, it is essential to increase productivity, which in turn will depend on quality workforce. 

“Quality workforce depends on quality education. We want our human capital that is e-ready and e-fit.”

He said it is the government’s vision to produce quality, future-proof and values-driven graduates.

“In the last 10 months, key steps have been taken towards these ends. They include reforming the curriculum where the national civic and religious education subjects are currently under review to ensure values are practised and inculcated. In other words, let’s make national schools great again.

“We have abolished exams for Standard 1 to 3 to make way for a more holistic development of each child. Science, technology, engineering and mathematics or STEM graduates will be increased by making it more accessible, experiential and meaningful. So is the development of a single technical and vocational education and training or TVET system to ensure it is standardised and industry-driven.”

Dr Mahathir said the government, which is currently rationalising its expenditure, is also streamlining social protection and assistance programmes. 

“We have over 110 programmes under 21 ministries and agencies. The current system is too fragmented, less targeted to households needing it most, and does not promote upward social mobility.”

He added that by consolidating and connecting these programmes, the government will be able to create a more comprehensive social protection ecosystem and, coupled with effective monitoring and evaluation processes, will also ensure that it gets the most out of this. 

“A social well-being council has been established and led by the deputy prime minister. It will become a policy-setting centre for this important agenda. We want to create a safety net for those who are vulnerable, which will subsequently help them bounce back out of their vulnerabilities and move on to improve their social mobility.”

He said after being in power for 10 months, the government is aware of the sentiments of the people. – March 19, 2019.