LETTER | In a report published by Bank Negara Malaysia (BNM) in 2018 it was revealed that for an individual to survive in the Klang Valley he or she would need a “living wage” of RM2,700 per month.
It has been six years since the said survey was made public and it needs no rocket science to conclude that the said figure requires further calibration on account of inflationary trends.
In my view, the present inflationary adjusted figure ought to be, conservatively, about RM3,000.
When the said inflationary adjusted figure is examined in the context of the national minimum wage, now at RM1,500 and “uplifted” to RM1,700 from Feb 1, 2025 (which in itself is mind-boggling), we need to ponder whether our working-class population, either by design or on account of the government pandering to the economic interest of the economic elitist, are being conscripted to wallow in the depths of poverty just so the employers’ lobby is appeased.
Given that the newly minted minimum wage of RM1,700 is grossly undervalued vis a vis the prevailing cost of living factors, workers are likely to either work overtime, on rest days and even public holidays (if such extra work is available) or, alternatively, resort to taking on additional part-time jobs to eke out a sustainable income.
And the consequence of working excessive hours seems to contribute to the global deaths of some 745,000 workers annually according to a past World Health Organisation (WHO) /International Labour Organisation (ILO) study - is a recently reported death, of a seemingly healthy Malaysian working long hours juggling time between more than one job, a tip of the iceberg in the said equation?
Loss of productivity
It cannot also be denied that the deteriorating mental health of workers brought about financial stress would result in a lack of concentration at work, enforced medically approved leave of absence and increased cost of healthcare which, in turn, results in loss of productivity.
Increasingly there seems to be a nexus between financial distress and worker's mental health including sudden death. In Japan, it is termed “karoshi” translated to mean “overwork death”.
Given the fact that the country’s Compensation Of Employees share to gross domestic product is only at 32.4 percent (in 2022), it cannot be denied that wages need to be progressively improved if the nation is to attain the desired high-income status and, in the process, provide workers with a living wage.
But given the unrealistic minimum wage of RM1,700 per month as opposed to even the 2018 BNM report suggesting a living wage of RM2,700 for an individual, it would only be wistful to harbour hopes of achieving a high-income nation in the next decade or so.
In the circumstances, the only forward path, to elevate if not to eradicate financial constraints confronting the working population, is to implement a transformation of the prevailing wage ecosystem by enforcing an annual wage adjustment system wherein all employers shall be compelled to improve wages to ensure that wages progress and not remain stagnant as it is believed to be the case.
As a prominent businessperson voiced recently, volunteerism does not resonate with employers. They need to be compelled to raise wages to ensure that our working population are paid a fair living wage which would free them from long working hours, juggling between jobs and, most importantly, relieving them from financial distress.
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
