Gov't committed to implement progressive wage policy for private sector - PM

He said the government's move to review the Public Service Remuneration System (SSPA) sends a clear message to the private sector not to prioritise high profits at the expense of their employees.

"This is because young people and graduates are asking about their future in the private sector. Hence, the Progressive Wage Policy is introduced," he said in a live address to the nation broadcast via local media channels last night.

Anwar said on May 1, he announced that public servants would enjoy a salary increase of more than 13 per cent starting in December, after many years without a review.

Additionally, he said various efforts are being implemented to support the people's economy and enhance the skills of local talents so that the wages earned are more reasonable.

The prime minister said this includes improving the business ecosystem to support new, competitive and high-value industries so that investments in the local economy can be increased, leading to a more meaningful rise in the people's wages.

He said local industries, particularly the semiconductor sector which is gaining global recognition, are being given added value, adding that the new industrial master plan targets increasing the minimum monthly income of manufacturing industry workers to RM4,500 by 2030.

Anwar said to develop more skilled local talent among youths, the government is also collaborating with industry giants to restructure the country's Technical and Vocational Education and Training (TVET).

"Artificial Intelligence (AI) is also being prioritised through the establishment of the country's first AI Faculty at Universiti Teknologi Malaysia with networks with all AI disciplines nationwide, science centres and universities," he said.

He said Khazanah Nasional Bhd is also driving efforts to create new entrepreneurs in high-growth sectors with a RM1 billion fund.

To eradicate hardcore poverty, he said the government is implementing the People's Income Initiative (IPR) in collaboration with state governments that has so far shown progress, which he described as reassuring.