The government has proposed an index to accurately measure the cost of living to assist employers in determining the right salary increase.
Finance Minister Lim Guan Eng said the current Consumer Price Index (CPI) did not portray the actual situation as it comprised several other factors, for example, an estimate on business production cost and input cost.
“What is intended will not be achieved if we still use CPI as a reference point to determine the amount of salary hike,” he said.
Lim said this in his speech during the launch of “Belanjawanku - Panduan Perbelanjaan untuk Individu dan Keluarga di Malaysia” in Bangi today.
“I have brought this matter to Bank Negara Malaysia.
“Maybe the EPF can do the same because at least there are two models for us to compare the indexes to accurately measure the cost of living,” he added.
“Belanjawanku” provides the minimum measurement of monthly expenses on various goods and services needed by every household in the Klang Valley to achieve a comfortable standard of living.
It also provides an overall guide, including the provision of basic needs, social involvement, recommended savings, social repayment and the practicality of managing expenses.
At present, Belanjawanku takes into account household spending in the Klang Valley, and it would be expanded to other states soon.
Meanwhile, Employees Provident Fund chief executive officer Tunku Alizakri Alias said the creation of such index would be a good first step to move forward in terms of social security infrastructure.
"I am hoping that the data we have collected would be able to go to the policymaking (stage).