ECONOMY Minister Rafizi Ramli announced a series of initiatives aimed at addressing the pressing issue of wage disparities and poverty in the country.
Speaking at the launch of the World Bank Malaysia Economic Monitor: Raising the Tide, Lifting All Boats report, Rafizi stated the urgency of the situation, highlighting that the median wage of RM2,600 per month is only RM11 above the poverty line (RM2,589) and half of all Malaysian workers barely earn more than the minimum wage.
“Half of all Malaysian workers earn only slightly more than the minimum wage. We cannot take a wait-and-see approach any longer. We are keenly aware that the wage problem must be addressed.”
The government has unveiled a progressive wage policy designed to bridge the income gap. The policy, which has received Cabinet approval focuses on voluntariness, incentives and productivity. By rewarding employers and closely monitoring the productivity of workers, the policy aims to create a fairer and more balanced economic landscape.
“This is the only wage model that satisfies the main stakeholders of employers and employees, as it rewards rather than penalises employers and keeps a close eye on the productivity increases of workers, which we make a condition for this policy,” claimed Rafizi.
Detailed plans for the progressive wage policy are set to be revealed during the upcoming 2024 Budget on Friday (Oct 13) with implementation expected to follow shortly after. This policy is seen as a significant step towards ensuring that the workforce is adequately compensated for their efforts, aligning with the government’s commitment to tackling poverty at its root cause.
Moreover, Rafizi addressed the issue of social assistance and subsidies, acknowledging that a blanket approach is not effective.
“The blanket subsidy model eats up the already-limited social spending budgets. At the same time, broad-based social assistance programmes are often received by richer households that do not need them which dilutes the value of these programmes for the needy.
“That is why in 2024, the government will introduce a targeted subsidy system that will help free up the much-needed fiscal space for the government while also reducing poverty and inequality at the same time.”
According to Rafizi, direct transfers are four times more effective at reducing inequality than subsidies, paving the way for a more equitable society.
Rafizi emphasised that these initiatives are vital for a nation grappling with low revenue, persistent poverty and rising inequality rates. By adopting these innovative strategies, Malaysia is taking a proactive stance, aiming to reverse the trends of the past decade and create a brighter, more prosperous future for all its citizens.
“Only through doing this could the poverty and inequality rates that stayed largely unchanged (or even increased) for the past 10 years finally start to decline again.” - Oct 11, 2023
https://focusmalaysia.my/rafizi-levels-the-playing-field-unveils-solutions-to-tackle-livelihood-disparities/
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
Created by savemalaysia | Aug 26, 2024
He is stupig. The top 2% who hold 80% of the wealth wouldn't be affected at all. Super richies like ministers and CEOs charge everything to the tax payers and companies respectively.
His method would only make the M40 joining the B40 as the miserable 80
2023-10-13 07:50
The key is these people are spend thrifts in managing their finance loh!
If u cannot afford, the high ticket items like new cars, do not buy mah!
If really want to buy, bcos no choice, look for 2nd hand affordable cars loh!
But alot these people splurge on big new ticket items n hope that govt can help them in their daily necessity & cost of living loh!
The govt can help by making sure, that there are plenty of jobs available if they want to work hard to supplementing their income by taking part time jobs to generate 2nd & 3rd income loh!
Govt should not always.....handout....handout.....give subsidies....subsidies....making people depending to the Govt for monetary help loh!
Govt should Create a good working hard cultural for all msian.....with the positive can do work hard attitude for the future sustainable progress of the nation mah!
Remember self help is the best help in your quest for success loh!
2023-10-13 08:13
Quote: "...Govt should Create a good working hard cultural ..."
Takfit takfit schools
2023-10-13 08:29
He is stupig. Only could rob from the M40 and give to the B40. 80% of expenditure of these "80" goes to pocket of the top 2%.
2023-10-13 08:32
An analogy would be to rob from the top earner bilises and give to the losers. But life will go on as usual for sharks the top 2%
2023-10-13 08:36
Quote: :"capital gains inside sdn bhd now to be taxed whereas BURSA Listed companies still tax free"
Here again- robbing from indivuduals' sdn bhd to splurge those exceptionally high income directors, CEOs and corporate managers
2023-10-13 09:12
speakup
wrong focus. should focus on making the Pie bigger rather than how to make the Pie equal for everybody!
if obsessed with equality, baik just become a Communist country, semua equal
2023-10-13 07:40