THE Malaysian Employers Federation (MEF) has expressed disagreement with Economy Minister Rafizi Ramli’s announcement of plans for progressive wage increases involving the private and public sectors.

In a statement, its president Syed Hussain Syed Husman said wage policies are not under the purview of the Economy Ministry, but the Human Resources Ministry.

“The economy minister should instead be sharing with businesses and the people plans to improve the economy, thereby raising the standard of living. 

“So far, MEF has yet to see any such concrete plans from the minister to improve the economy,” he said in a statement today. 

Last week, Rafizi said he hoped the private sector will also be committed to helping the government realise its policy on progressive wage increases to parry the rising cost of living.

Rafizi said the government needs a comprehensive policy involving the private and public sectors as it is now its priority to bridge the significant gap between the growth of wages and the increase in the cost of living.

Then on Tuesday, Rafizi also hinted that Putrajaya’s plan for progressive wages could entail making annual salary increments mandatory. 

Syed Hussain said Rafizi should take into consideration that market forces determine the right price of labour. 

He added that Rafizi should also not make salary increments mandatory. 

“Industries all over the world have always relied on market data to determine compensation and benefits. The government should not dictate what should be done in terms of rewarding employees,” he said.

Syed Hussain said Putrajaya needs to lay down the proper and adequate foundations for a progressive wage model to be implemented by discussing and consulting with relevant parties.

This includes setting up committees consisting of unions, employers and government ministries and agencies. 

“A progressive wage model should not only be about increasing salaries but ensuring improved productivity and profits as well as better products and services at affordable prices for consumers,” he said. – July 13, 2023.