Parti Sosialis Malaysia (PSM) has called for a minimum wage law to be enacted before withdrawing subsidies which are sustaining the lower-income group - some 60 percent of households in the country.

 

mtuc minimum wage salary protest 080807 minimum Deputy secretary-general Rani Rasiah said: “For the working people, subsidies compensate somewhat for the government’s low-wage policy and the reality of high living costs.

“Without such laws to ensure the producers of wealth are paid a just wage, it would be completely irresponsible of the government to do away with subsidies.”

She claimed that the government is prepared to further enrich the wealthy and the foreign investors with Malaysia’s low wage structure, while being politically blind to the plight of workers who have been stuck with low wages for the past 52 years.

Rani explained that a minimum wage structure to reflect current economic situation would:

  • enhance the productivity of Malaysians to further drive the country’s economy;
  • reduce the dependency of cheap foreign labour force which contributes to the social ills in the country;
  • create a purchasing power force that can stimulate the economy of a nation currently dependent on foreign investments; and
  • reduce Malaysians’ dependency on subsidies.

She pointed out that the government prefers to avoid the bigger picture of public funds being squandered through numerous wasteful 'white elephant' projects, the illegal and astronomical awarding of kickbacks and the billions of ringgit siphoned off in high-powered corrupt deals.

Instead, the government makes the public a punching bag for its political and economic mismanagement which has driven the nation to the brink of bankruptcy, with its debt of RM362 billion and fiscal deficit of RM47 billion, she said.

‘Provide quality services first’

The PSM condemned the government for seeking to exonerate itself by laying the blame elsewhere for the cost of subsidies.

The party also denounced the government’s charade of consulting the people on the matter, after squandering public funds.

It said the government must ensure healthcare and education services remain nationalised, and continually developed and improved.

“It is the responsibility of the government to provide quality healthcare and education, cheaply or at subsidised rates to the people,” Rani said.

The PSM is not adverse to the removal of the fuel subsidy, she said, in view of the fast depleting oil resources and in the interest of the environment.

However, she qualified this, saying that subsidy removal must only come after the government establishes an efficient and cheap system of public transportation as a viable alternative to private vehicle ownership.