
He said even a salary increase of 10% to 25% would not do the people any good if it was accompanied by a rise in the cost of living.
“The salary may be more, but the capability to buy remains the same,” he said at the monthly assembly of the Prime Minister’s Department here.
“What’s the use of becoming a millionaire if we can only afford to buy (things from) along the streets?”
Mahathir said the people’s purchasing power also depended on productivity, which should increase in tandem with income and wages.
If productivity was low or remained at the same level despite an increase in salary, he said, living costs would continue to rise as products which were initially cheap would become expensive since they were produced by high-salaried workers.
“Production costs will increase, and so will the cost of living. Even with a salary increase of up to 25%, our purchasing power does not necessarily increase by 25%.
“So again, there will be requests for higher salaries and wages, but if there is a salary increase without an increase in production, the money we get will not have any meaning at all.”
He said the people, especially those from the younger generation, should embrace noble values and make Malaysia a hardworking country which did not break promises or ask for excessive wages, but focused on high productivity.
“If the government’s administration is of the best quality and our work yields the best governance in the world, believe me, even if we have to stand in the sun and listen to the prime minister’s lecture, the results will also be good,” he said.
Adding that he could not work for long periods due to his age, Mahathir said he nevertheless hoped to instil good values among the civil servants who would raise Malaysia’s image in the eyes of the world.