Govt committed to implementing progressive wage policy for private sector, says PM

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has expressed the government’s seriousness in coming up with a Progressive Wage Policy for the private sector, in line with improvements made to the salaries and allowances of civil servants.

He said the government’s move to review the Public Service Remuneration System (SSPA) sends a clear message to the private sector not to prioritise high profits at the expense of their employees.

“This is because young people and graduates are asking about their future in the private sector. Hence, the Progressive Wage Policy is introduced,” he said in a live address to the nation broadcast via local media channels on Tuesday (May. ) night.

Anwar said on May 1, he announced that public servants would enjoy a salary increase of more than 13% starting in December, after many years without a review.

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Additionally, he said various efforts were being implemented to support the people’s economy and enhance the skills of local talents so that the wages earned were more reasonable.

The prime minister said this included improving the business ecosystem to support new, competitive and high-value industries so that investments in the local economy can be increased, leading to a more meaningful rise in the people’s wages.

He said local industries, particularly the semiconductor sector which was gaining global recognition, were being given added value, adding that the new industrial master plan targets increasing the minimum monthly income of manufacturing industry workers to RM4,500 by 2030.

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Anwar said to develop more skilled local talent among youths, the government was also collaborating with industry giants to restructure the country’s Technical and Vocational Education and Training (TVET).

“Artificial Intelligence (AI) is also being prioritised through the establishment of the country’s first AI Faculty at Universiti Teknologi Malaysia with networks with all AI disciplines nationwide, science centres and universities,” he said.

He said Khazanah Nasional Bhd was also driving efforts to create new entrepreneurs in high-growth sectors with a RM1bil fund.

To eradicate hardcore poverty, he said the government was implementing the People’s Income Initiative (IPR) in collaboration with state governments that has so far shown progress, which he described as reassuring. – BK