The Malaysian Insider
BN Youth to push for forum on minimum wage issue
By Melissa Chi

BN Youth Chief Khairy Jamaluddin told reporters that this was an urgent matter which had to be looked into immediately.

“So today not only are we urging and demanding for minimum wage, but we want to build an intellectual case for minimum wage in Malaysia,” he said.

Khairy said this after a meeting with representatives from the Malaysian Trades Union Congress (MTUC) and the Congress of Unions of Employees in the Public and Civil Services (Cuepacs).

He said this issue had to be ironed out before the New Economic Model (NEM) is introduced in October.

Although Khairy said the date had yet to be confirmed, the forum would be within the next month, he said, hopeful for the presence of the prime minister or his deputy.

“There is no point today for us to talk about a higher income economy if we’re still allowing for wages to be offered at far below the poverty line,” Khairy said.

He said that a study by the Human Resource Ministry showed that 34 per cent of 1.3 million workers earned less than RM700 per month, which was below the poverty line of RM720 per month.

The minimum wage policy is expected to be tabled to the Cabinet in October

Khairy also said that the minimum wage issue was not just an economic issue, but also a moral one and that it was an urgent matter.

“Today the main point is that this is a moral issue. It’s not just an economic issue but a moral issue for us to look at a minimum wage level that is not just commensurate with economic input or activities but clearly is above the poverty line,” he stressed.

MTUC secretary general G. Rajasekaran said there was a general consensus at a conference held early this month to have a minimum wage model and that the government had to intervene.

He also understands the government’s concern that the new model might drive new investors away.

“No point if we have high wages but no jobs but with two million foreign workers in the country, I think this is not a point to worry about,” he said.

The Human Resources Minister S. Subramaniam had said that the data collection for the minimum wage model had been done and the ministry will meet representatives of each of the sectors to discuss the model, taking into account factors in the national and regional employment sectors.

Prime Minister Datuk Seri Najib Razak had said that a sectoral minimum wage “probably offers the best way to build a skilled and competitive workforce capable of harnessing the potential of all Malaysians” at the Chinese Economic Congress on Aug 14.

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