Following the launch of the employee wages statistical report in Putrajaya today, he told reporters that stakeholders for a progressive wage policy have been briefed by the ministry.
“SMEs have been informed about the policy because we want to get their views and, to date, they have been very positive.
“There is no point in me having an idea when I have not tested it with the stakeholders. The largest stakeholders are employers and it’s looking positive,” he said.
Rafizi said the progressive wage policy paper will be presented to the National Economic Action Council on Monday.
He said raising the minimum wage was not helpful in dealing with the issue and contributed to the stagnancy of wages.
“The minimum wage actually drags down the salaries of skilled workers. It is actually being used as a reference wage for everyone when it is meant for unskilled labour. It is closing the gap between unskilled workers and degree holders,” he said.
Rafizi said data collected by the department of statistics Malaysia (DoSM) revealed that the median wage for employees was RM2,600, which is lower than the liveable wage of RM3,100.
He said the median wage sits only a few hundred ringgit above the poverty line of RM2,100.
“We do have a big problem and this is what restructuring is all about. It’s not just about getting growth and investments.
“It is making sure that whatever growth and investment we plan and generate is reflected in the livelihood of the workforce.”
Rafizi also said a “holistic reformation” of society needs to occur to reduce the number of people reliant on government aid.
“If wages increase, that doesn’t mean there won’t be people who need help, but we want to reduce that number so we can better target subsidies and government aid.
“If we don’t solve the issue of wages, then we will have to help 80% of people in that case. That is not going to solve the problem.”
Rafizi previously said the policy would be a joint development by four ministries – economy; finance; investment, trade and industry; and human resources.