KUCHING: Sarawak is conducting a wage study focused on aligning wage increases with productivity, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He said the state aims to create high-skill jobs particularly with the use of technology that can boost income.
“For instance, wages for tractor drivers being higher than those using traditional tools, thus increasing income based on skill level.
“Therefore, the state government gives emphasis to talent development under the Post-Covid-19 Development Strategy (PCDS) 2030. This is because talent development is the key.
“(If) you have the skills, then you will be paid higher. If there is no skill, then there is no pay. It is that sort of approach” he said.
He said this to reporters after witnessing the presentation of the Malaysian Book of Records (MBOR) certificate for the most participants wearing ethnic attire in a choreographed dance held at the Kuching Waterfront on Sunday (May 19).
Abang Johari was asked to comment on Economy Minister Rafizi Ramli’s recent remarks that a study will be done on the proposal of the United Nations Children’s Fund (Unicef) that the minimum wage rate be set at RM2,102 per month compared to the current RM1,500.
He said he does not know what the federal government’s policy would be, but that the state government has an approach which correlates productivity with skill development.
“We actually have a study where I have directed the Sarawak State Secretary to look into it, because when we have a civil service wage, it means the private sector has to follow, of course based on their affordability.
“But the important thing is if wages increase, local consumption will increase, which will further stimulate the economy. However, the only threat is inflation.
“So, we need to control wage increases with inflation; we also want to avoid sudden increases in prices. If our inflation rises, then there is no benefit to raising salaries, so our economic policy must be balanced,” he said.
Abang Johari who is also Minister of Finance and New Economy thus said that there must be a mechanism to control inflation.
“When we raise wages, we don’t want to raise wages without increasing purchasing power. There is no benefit in that.
“That is why the federal government, especially Bank Negara Malaysia (BNM) and the Ministry of Finance, must look at the implications of the percentage increase and its implications on the money flow in the market,” said Abang Johari.
