Economic affairs minister Rafizi Ramli said at the same time, the government will look into policies and programmes, through the ongoing 12th Malaysia Plan’s (12MP) mid-term review, which targets wage growth.

“This is because the government must have a clear framework over the next two to five years to ensure wage increases are not left to market forces. All these are for the medium and long term,” he said following a forum titled “Empowering industries to drive economic growth in the fourth industrial revolution era” today.

Rafizi said it was the government’s responsibility to ensure Malaysians have savings during their old age where focus will be given in terms of assistance and policies involving the cost of living and income.

“We need to be careful with EPF withdrawals, although I understand that for some families it can help for now, the cost they have to pay in the future is high,” he said.

Yesterday, Prime Minister Anwar Ibrahim said the government was in the midst of finding ways to reduce people’s financial stress without them having to withdraw their EPF savings.

Meanwhile, Rafizi also said that the impact of the increase in the cost of living can also be handled better by households if subsidy programmes are successfully channelled to targeted groups who truly are in need of them.

“The decision-making process for eligibility is under way and this is one of our biggest decisions when it comes to the nation’s economy. We must be able to determine household income and the number of households,” he said.

Rafizi also said that the Special Task Force to Facilitate Business (Pemudah) will be improved with the hope of making Malaysia a more competitive market and business-friendly destination.

“The platform will be chaired by me and also Chief Secretary Zuki Ali,” he said.