Edwin Oh Chun Kit
Malaysia’s wage landscape, influenced by factors like recent currency devaluation, escalating youth unemployment, and heavy reliance on foreign labour, primarily relies on the Minimum Wage Model. Despite the recent increase to RM1,500 per month with annual rises of 5.24% for Peninsular Malaysia and 6.49% for Sabah and Sarawak since 2013 recorded, overall labour productivity only managed a 2.3% annual increase from 2013 to 2022. This disparity between consistent minimum wage growth and slower productivity escalation poses indirect risks of potential job losses or underemployment in the long run. Could the Progressive Wage Model (PWM) provide a solution or bring about a positive impact to our wage landscape?