KUALA LUMPUR: The government is looking in principle at the policy for a progressive wage system in Malaysia and the discussion and engagement process has begun with various stakeholders, said Economy Minister Rafizi Ramli.

He said this is among the policies being studied by his ministry as it is in line with the 12th Malaysia Plan's aim for the ratio of wage and remuneration from the revenue given to workers to be enhanced to 40 per cent from the current level of about 36 per cent.

"We will bring the discussion to the appropriate government forums at a date to be fixed later," he told a media conference after officiating the 'UK-Malaysia Clean Growth Handbook' here today.

Rafizi said the government wants to ensure that the policy framework will be sustainable and can be implemented positively whereby both employees and employers will enjoy the benefits.

"This issue needs to be discussed and considered comprehensively not only at the policy level as we need to weigh the needs of the government and the economy, so wages should rise periodically in accordance with the capability of companies so that it does not impact them adversely," he added.

The policy for a progressive wage is something the government is looking at seriously and it will be broadly developed collaboratively among the Economy Ministry, Finance Ministry, Investment, Trade and Industry Ministry, and the Human Resources Ministry, the minister said.

On the upcoming announcement for the first quarter gross domestic product (GDP) growth, Rafizi said the government is positive and optimistic about it. "We hope that within a year or two, we could bring back the country's economy to a balanced path while strengthening the government's financial position," he added.

Addressing climate change, Rafizi said governments around the world have to confront the fact that the science on climate change is clear and the urgency to act is now and environmental sustainability is no longer merely a social good but an economic imperative for the world.

"This is especially important for a developing country like Malaysia where we stand to lose out on productivity, income, output, jobs, and health if we do not act in a concerted manner to contain and reverse the effects of climate change," he continued.

He noted that the UK- Malaysia Clean Growth Handbook is timely as Malaysia puts in place a multi-sectoral approach to scale up clean growth with new ideas and strategies ready for private sector uptake.

British High Commissioner to Malaysia Charles Hay expressed confidence that both countries would see more investments and collaborations in renewable energy in the future.

"I hope the clean growth handbook will serve as a practical guide to drive positive change, influence and address the important agenda of clean and sustainable growth," he said.

-- BERNAMA