A WAGE growth of 4.4% in 2019 does not give the full picture of the economy and leaves out the plight of those in the B40 and lower-income groups, said the Malaysian Trades Union Congress.

“The 4.4% hike in salary and wage may seem commendable to some, more so… (that) the increase reflected the 4.4% economic growth recorded by Malaysia last year. 

“(But it) must be looked from a more comprehensive perspective, as it deals with the plight of workers in this country. (It must) not be seen in isolation but instead evaluated with other relevant data released by the Statistics Department, Bank Negara and other creditable bodies,” MTUC secretary-general J. Solomon said in a statement.

He was responding to the Statistics Department’s announcement yesterday on the wage growth figure for 2019.

The increase of 4.4% or RM137 was still “well below what is needed by average Malaysian workers and their families, especially those in urban areas”.

The congress also noted the spiralling cost of living and higher prices of goods as a result of the Covid-19 pandemic’s impact on the economy.

“As things stand, an increase of RM137 is but a drop in the ocean of what is actually needed by Malaysian workers and their families to secure a decent standard of living,” MTUC said.  

Stating the average monthly salary and wage for 2019 at RM3,244 also did not give a full picture of the situation for many workers, whose salaries are around RM2,500 and who need to put in overtime in order to hit RM3,000.

“These workers live in abject poverty and with little savings, forcing them to incur high debts to sustain their families.”

The umbrella group for unions urged the government to have policies to address the widening income gap in the country, for which there is still no effective policy.

It cited a report by the Khazanah Research Institute from 2018 that absolute earnings between Malaysia’s top 20% and other citizens had nearly doubled. 

It also questioned the outcome of the government’s proposal to adopt a consumer living index (CLI) to complement the consumer price index (CPI), which to this date has not materialised. – September 18, 2020.