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KUALA LUMPUR, May 12 (Bernama) — There is still room for employers to restructure the salary implementation in Malaysia to be in line with the needs of a high-income country, said Prime Minister Datuk Seri Najib Tun Razak.
“As an example, the wages and pay as a percentage of gross domestic product (GDP) of a developed country is around 40 per cent. At present, the percentage of salary of the country’s GDP is at 32.9 per cent,” he said in his speech in conjunction with the release of the Government Transformation Programme and Economic Transformation Programme 2013 Annual Reports today.
He said the employees’ productivity in Malaysia, which increased 2.3 per cent last year, could be improved
further when work value was added in terms of technology, innovation and creativity.
Najib, who is also Finance Minister, said the salary rate could be increased gradually when the productivity rate increases.
In line with the needs of a high-income country, he said the Strategic Reform Initiative for Human Capital Development involved implementing policies aimed at fostering transformation at the work place and human resources, creating a work environment that is competitive and attractive, retain talent and improving existing workers’ skills.
“Among the main achievements of this initiative are the implementation of the Minimum Wage Order 2012 and Minimum Retirement Age Act 2012 which was enforced in January 2013,” he said.
Najib said the new legislations made it compulsory for local workers to be paid with a minimum pay of RM900 per month in Peninsular Malaysia and RM800 per month in Sabah and Sarawak.
Source: BERNAMA
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