The latest fact discovered by the Human Resource Ministry that 34% of Malaysian workers earn below RM700 which is below poverty level is not a new issue. It is time the relevant authorities address this issue  before it leads to greater marginalisation of the poor.

Over the years, salaries have been depressed by the influx of foreign workers and the reluctance of employers to train shop floor operators through industrial training to improve productivity. There is more emphasis  on  on job training, with little concern for innovation that could lead to higher productivity, that could increase the income of workers.

Management executives are given the first priority in any human resource development effort, which reveals an elitist approach in monopolising education and training in the manufacturing sector.

Malaysian-based companies in general, especially those of the small and medium-sized industries, usually embark on a cost-saving strategy where yearly short-term gains in cost are far more important than long-term term strategic thinking in terms of enhancing technology towards improving productivity which could  be a basis to train workers on new techniques that could help increase the income of workers.

There is also an absence of career and reward structures in some of these companies, where the human resource department merely plays an administrative role of salary computation which reveals a lack of appreciation on the importance of holistic understanding of human resource management where planning, recruitment, career development, compensation and healthy  industrial relations are viewed within a integrated system of people management.

Judging from the employers’ point of view, a significant segment of Malaysian workers do not have  the industrial discipline in terms of pride and desire for excellence in comparison with workers in Singapore and Japan and this has  also contributed to the decline of our wage rates.

It is vital that government take a proactive role  to address the concerns above, not merely addressing the issue of minimum wage but also taking into consideration people management  and the development of small and medium-sized industries.

Currently there is a ISO9000 system audit which is done every year to check on quality management and there is a need to come up with a quality certification for people management for the small and medium-sized industries. This could help a long way in addressing the issue of low wages which is structural in nature.