KUALA SELANGOR, January 17 ― Economy Minister Rafizi Ramli emphasized that the government will carefully assess the feasibility of implementing the progressive wage policy, taking into account employers’ capacity and the current economic conditions. Rafizi explained that the policy’s implementation is voluntary and involves government incentives. He stressed the need for a balanced approach, considering the majority of employers in the country are micro, small, and medium enterprises (SMEs). Rafizi highlighted that imposing the policy arbitrarily could lead to business closures and job losses.
The government aims to convince employers gradually to increase wages through incentives and voluntary participation, rather than imposing mandatory regulations. The minister shared these insights during the Grant Presentation Ceremony under the People’s Income Initiative (IPR) programme and the Townhall Session with the Student Leadership of Universiti Teknologi Mara (UiTM) Selangor branch. Rafizi mentioned that his ministry, along with the Ministry of Human Resources, focuses on private sector salaries, while the study of the Public Service Remuneration System (SSPA) is under the purview of Prime Minister Datuk Seri Anwar Ibrahim.
Rafizi reiterated the challenges in implementing the progressive wage policy, emphasizing the need to convince employers to gradually raise wages. The government is also working on ensuring the sustainability of financial resources for the Public Service Remuneration System. The grant presented by Rafizi supports projects related to poverty census and financial literacy courses for IPR participants conducted by UiTM Selangor Branch.
