Economy Minister Rafizi Ramli emphasised that the government would not impose the progressive wage policy arbitrarily. Instead, it would carefully assess the capacity of employers and the current economic conditions. Rafizi clarified that the policy’s implementation is voluntary and involves government incentives.
“We cannot impose arbitrarily, like a minimum wage order, because we also have to take into account the ability of companies, employers and the (national) economy. The largest employers in the country are actually micro, small and medium enterprises (PMKS) and 97% of business entities in our country is PMKS.” he said.
He added that a mandatory approach, akin to a minimum wage order, would need to consider the ability of micro, small, and medium enterprises (PMKS), which constitute 97% of business entities in the country. Rafizi highlighted that such an imposition could lead to business closures and job losses, necessitating a balanced approach.
Addressing reporters after officiating a grant presentation ceremony, Rafizi mentioned that the progressive wage policy presented a unique challenge, requiring the government to convince employers to gradually increase wages.
According to Bernama, Rafizi stated that while his ministry and the Ministry of Human Resources focus on private sector salaries, the study of the Public Service Remuneration System (SSPA) is overseen by Prime Minister Datuk Seri Anwar Ibrahim.
“The progressive wage policy has a different challenge; it’s not just a matter of money but it’s also how we (the government) want to convince employers to raise wages gradually.
“For SSPA, the government has to ensure that the financial resources are sustainable enough and that the matter is being managed by the prime minister,” he said.
