{"id":399,"date":"2019-06-28T03:22:26","date_gmt":"2019-06-28T03:22:26","guid":{"rendered":"http:\/\/irdp.tk\/?p=399"},"modified":"2020-09-28T03:23:51","modified_gmt":"2020-09-28T03:23:51","slug":"ensuring-a-fair-deal-for-the-overworked-and-underpaid","status":"publish","type":"post","link":"https:\/\/irdp.my\/bm\/ensuring-a-fair-deal-for-the-overworked-and-underpaid\/","title":{"rendered":"Ensuring a fair deal for the overworked and underpaid"},"content":{"rendered":"
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The International Trade and Industry Ministry recently launched its annual report for 2018, along with the Malaysia Productivity Corporation (MPC) Productivity Report 2018\/2019.<\/p>

Minister Datuk Darell Leiking, in his speech, had assertively touched on Malaysia\u2019s economy, trade affairs, imports and exports, investment performance, industrial development, productivity and competitiveness.<\/p>

The most notable announcement was Malaysia\u2019s economic growth rate at 4.7 per cent with all sectors recording positive growth except for agriculture.<\/p>

He also said that despite the good news, there was still a drawback \u2014 the people still could not feel the positive impact from the economic achievement, especially in terms of wages.<\/p>

Bank Negara Malaysia\u2019s (BNM) 2018 report showed that Malaysian workers are being paid less than workers in benchmark economies. The closest theory is that only the T20 group can feel the impact but less is felt by the M40 and even lesser by the B40 group.<\/p>

Numerous studies have been conducted to explain why wages or income for most Malaysians did not improve along with the economic growth, yet, most of the explanations were not convincing enough to change the condition of stagnant wages.<\/p>

To begin with, wages should be based on productivity. Both are interrelated and should be observed by the employer in order to determine fair wages for the employees. However, it seems that most employers only look at the productivity as part of the profitability, and not as a means to improve the life of the workers.<\/p>

According to the recently launched Malaysia\u2019s Labour Productivity Performance by MPC, labour productivity growth had expanded to 2.2 per cent with RM91,971 in 2018 compared with RM89,952 in 2017, measured by real added value per person employed.<\/p>

On the other hand, the average wage in Malaysia in 2017 was RM2,880 per month. This performance report and average wage significantly showed that Malaysian employees are overworked and underpaid by their employers.<\/p>

The central bank\u2019s 2018 report highlighted this issue, and stated that most industries compensate workers less than those in the benchmark economies, even after adjusting for productivity. The proof can be seen clearly in the wholesale and retail trade, food and beverage, and accommodation industries that contribute 19 per cent of the economic activity and 27 per cent of total employment in Malaysia. These industries are notable for being high labour-intensive and dependent on low-skilled workers with low salary.<\/p>

The current wages are still noticeably less compared with the wages set in benchmark economies even after considering the different productivity levels across the countries.<\/p>

Another evidence by BNM is the dismaying ratio of wages to productivity by sectors, where Malaysian workers are paid less compared with the benchmark economies in almost all sectors, except for utilities.<\/p>

In fact, it is quite unfair that Malaysia is ranked 22nd out of 63 countries for Workforce Productivity Competitiveness by international standards in 2019, but workers are still being paid relatively less by the employers. Fair wages will always remain a contentious and disputable subject if there is no comprehensive solution.<\/p>

Hence, the government should be serious in its reforms for New Malaysia \u2014 by looking at the income levels through enhancement of policy effectiveness.<\/p>

BNM\u2019s proposal on comprehensive reforms to raise incomes by generating quality labour demand, reducing labour mismatches, reinforcing wage-productivity links and creating a conducive labour environment is certainly worth looking into.<\/p>

There are many \u201csilent\u201d workers hoping to improve their lives, but can only depend on a rise in wages to make it a reality.<\/p>

AISYAH ABDUL HADI<\/strong><\/p>

Researcher, IRDP<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

The International Trade and Industry Ministry recently launched its annual report for 2018, along with the Malaysia Productivity Corporation (MPC) Productivity Report 2018\/2019. Minister Datuk Darell Leiking, in his speech, had assertively touched on Malaysia\u2019s economy, trade affairs, imports and exports, investment performance, industrial development, productivity and competitiveness. The most notable announcement was Malaysia\u2019s economic …<\/p>\n

Ensuring a fair deal for the overworked and underpaid<\/span> Read More »<\/a><\/p>","protected":false},"author":1,"featured_media":400,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"categories":[6],"tags":[],"yoast_head":"\nEnsuring a fair deal for the overworked and underpaid - IRDP Malaysia<\/title>\n<meta name=\"description\" content=\"Institute for Research & Development of Policy (IRDP) is an independent and not-for-profit think tank based in Kuala Lumpur.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/irdp.my\/bm\/ensuring-a-fair-deal-for-the-overworked-and-underpaid\/\" \/>\n<meta property=\"og:locale\" content=\"ms_MY\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ensuring a fair deal for the overworked and underpaid - 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