MALAYSIA’S new minimum wage of RM1,500 will take effect tomorrow but it is still not sufficient to cover workers’ day-to-day living expenses, Charles Santiago said. 

Ahead of Labour Day tomorrow, the Klang lawmaker said that although the new minimum wage is welcomed, it is hardly enough to cover the cost of living for a single person. 

“What more a family of four? Bank Negara Malaysia and Khazanah have pointed out that the living wage for a family of four is about RM6,000 a month but we are far from reaching this number for the majority of workers in the country,” he added. 

In March, Prime Minister Ismail Sabri Yaakob announced a minimum wage rate of RM1,500 per month nationwide, starting May 1.

Santiago was of the view the new minimum was nothing to celebrate about.

“In reality, wage stagnation over the last two decades has reduced the quality and standard of living of workers,” he said. 

The DAP lawmaker said that the Covid-19 pandemic had increased job vulnerability with loss of income jobs and reduction in wages.  

He added that inflation, especially in the increases in food prices, has added to the plight of the people.

Santiago said the absence of state intervention in establishing a robust social protection system has left workers in limbo. 

“So, they end up withdrawing money from their retirement fund, the EPF. This further depletes the savings of the already financially vulnerable low-income households and worsens the state of old-age poverty,” he said. 

The parliamentarian urged the government to aim for the implementation of living wages and to rethink social protection with a more comprehensive and inclusive approach to cover vulnerable groups for the long term.

“Social protection programmes can be a powerful instrument to not only lift families and children out of poverty but also to promote maternal and child nutrition,” he said. – April 30, 2022.