Minimum wage policy should be done in an orderly manner - BNM Governor
Bernama
March 30, 2022 12:47 MYT
March 30, 2022 12:47 MYT
Minimum wage policy should be done in an orderly manner to ensure that the move will support economic growth while not adding inflationary pressure to the country, said Bank Negara Malaysia (BNM) governor Tan Sri Nor Shamsiah Mohd Yunus. - BERNAMA
KUALA LUMPUR: Minimum wage policy should be done in an orderly manner to ensure that the move will support economic growth while not adding inflationary pressure to the country, said Bank Negara Malaysia (BNM) governor Tan Sri Nor Shamsiah Mohd Yunus.
She said this is needed especially as the country is just emerging from the COVID-19 pandemic amid increasing global uncertainties due to the geopolitical tensions.
"Under the current circumstances, the implementation of the minimum wage increase would need to account for the uneven recovery across industries.
"What we must do is, to minimise the disruption on this front, we should give some time for the affected firms to adjust," she told a virtual press conference in conjunction with the release of a series of BNM's reports today.
The reports are the Annual Report 2021, Economic and Monetary Review 2021 and Financial Stability Review for the second half of 2021.
Nor Shamsiah said a phased approach announced by the government would also help to address the minimum wage issue.
However, she said that over time, the minimum wage would need to converge to minimise distortions in the job market, such as workers moving to jobs that offer higher wages.
"So more importantly, there should be a clear and transparent roadmap so that all affected parties, be it large or small firms, could plan accordingly for the road to recovery," she said.
Earlier this month, Prime Minister Datuk Seri Ismail Sabri Yaakob announced that the government had agreed to increase the minimum wage to RM1,500 from RM1,200 currently and this would be implemented nationwide for certain companies effective May 1, 2022.
-- BERNAMA