Women’s Aid Organisation (WAO) advocacy manager Gandipan Gopalan said the PWP was a welcome step to ensure that workers are more adequately compensated, but its voluntary nature and limited registration weakened its impact.

He said the PWP could help bridge wage disparities if it were made mandatory and better enforced.

“If implemented well and made compulsory, it could make a real difference for single mothers and women working in small businesses or contract workers at government premises,” Gandipan told FMT, adding that the PWP was introduced as a complement to the minimum wage.

Introduced under the 12th Malaysia Plan mid-term review, the PWP links wage increases to productivity and skills development.

Employers who participate voluntarily receive government incentives to raise salaries and provide training.

The human resources ministry said the PWP was designed to address a key concern of employers over increased wages and improved productivity. It is also aimed at reducing turnovers.

Former Klang MP Charles Santiago said the PWP is an acknowledgement that the labour market does not always benefit the low-wage category.

“That is why it needs to be mandated, rather than remain voluntary,” Santiago, who has often spoken on fair wages, said when contacted.

He pointed out that similar models in South Korea and Singapore showed that wage growth only improved after participation became compulsory.

“The PWP recognises that the system itself needs support mechanisms to lift workers up,” Santiago added.