LETTER | Ten unions from across Malaysia are appalled at the announcement by the Prime Minister’s Department that the minimum wage would be increased to a mere RM1,050 on Jan 1, 2019. Representatives from these unions say that the proposal fails to allow workers to live a life of dignity.

The Pakatan Harapan manifesto had given many workers hope that a RM1,500 minimum wage would be a reality soon. Considering the already stagnant state of working-class wages against the rising costs of living, an increase of RM50 a month is utterly meaningless.

Earlier this year, Bank Negara outlined that the estimated cost of living for a single worker in Kuala Lumpur is RM2,700, and for a couple with two children, it is RM6,500.

The gulf between what Bank Negara has said is needed for a minimum acceptable standard of living and the proposed new minimum wage of RM1,050 defies comprehension.

The unions agree that the 2019 minimum wage increase should have been set at RM1,500 (including standardisation across Sabah and Sarawak), but also note that there is a serious need to establish a tangible pathway to lifting the minimum wage to the living wage level of RM2,700 within five years.

Low wages have created deep impacts across the economy, since stagnant wages lead to stagnant consumption. The World Bank has said that Malaysia will achieve high-income status by 2020, but our deeply unequal distribution of wealth means that many too many workers are being left behind.

Lifting the wages of the lowest paid workers in the country does more to guarantee that capital will be pumped back into the economy, because lowly paid workers spend their money, unlike wealthy executives.

The common conception that the minimum wage is only for workers who are starting out is simply not true.

In our experience, without a union onsite that is in a position to collectively bargain, it is very rare for employers to take the initiative to lift wages by themselves. Our industries – wood processing, pulp and paper and furniture – are key export industries that generate a lot of revenue, and yet workers are often paid at or just above the minimum.

Workers have little to be happy about in this proposed wage revision.

Endorsed by:

Electronic Industry Employees Union Western Region
National Union of Transport Equipment and Allied Industries Workers
Malayan Nurses Union (MNU)
Timber Employees Union of Peninsula Malaysia (TEUPM)
Sabah Timber Industry Employees Union (STIEU)
Union of Forestry Employees Sarawak (UFES)
Union of Employees of Construction Industry (UECI)
Malay Forest Officers Union (MFOU)
Perbadanan Kemajuan Negeri Selangor (PKNS) Union
University Malaya General Staff Union (UMGSU)

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.