KUCHING: Minimum wage must match productivity, says Sim Kiang Chiok, the Sarawak Housing and Real Estate Developers Association vice-president.
He voiced this following the Malaysian Trades Union Congress’ (MTUC) call for a monthly minimum of RM500 in cost of living allowance (Cola) in its Budget 2020 proposals.
Sim added that any mismatch in quantum or timing would result in inflation.
Cost would be driven upwards and prices would increase, rendering any increase in wages a futile exercise, he explained, and might continually push the cost of living higher than what the increase in minimum wages or Cola is trying to mitigate. “Hence, resulting in the cost of living trapped in a negative spiral.”
MTUC also proposed to increase the mandatory retirement age to 65, and Sim said: “As long as the employee is healthy and able to perform, it’s a good motion to support.”
He rubbished fears that the extension of the retirement age would restrict job opportunities and promotions of younger employees.
“Our country needs all the available experienced workforce, to keep growing into a developed nation as well as maintain our growth trend,” he pointed out.
“Extending the retirement age will not necessarily reduce the opportunities for the younger generation but will complement the younger workforce…they can provide guidance, experience, networking and knowledge in the workplace.”
