Private sector (profitable ones) should give higher salaries

Private sector (profitable ones) should give higher salaries

It’s good news for the civil service as announced by PM Anwar Ibrahim recently. Double-digit salary increase was announced. Here’s that latest article:

Higher Salary Means More Money for Spending! (click to read)

After increasing the salary of the civil servants, there is now an advice to the private sector to follow too. I wonder what would be the response from the private sector since there is now an advice. Do read on:

Article in thestar.com.my Prime Minister Datuk Seri Anwar Ibrahim hopes the private sector will follow in the government’s footsteps by raising wages.

He said a salary hike would alleviate the burden on employees.

“We hope the private sector (will consider) this, especially companies that record high profits,” he said briefly after the 19th Majlis Amanat Perdana Perkhidmatan Awam (Mappa) here on Friday (Aug 16).

Human Resources Minister Steven Sim said, “Companies are encouraged to join the progressive wage pilot project that is currently underway and aimed and improving wages, especially in small and medium enterprises,” he said in a statement on Friday. Please refer here for the full article: Article in thestar.com.my

Stay focused on helping companies become even better

Paying more salaries do not necessary mean that the productivity is going to be higher. If the productivity does not grow, then the companies would just be increasing its costs. This is not a good move for companies. However, the government could perhaps provide upskill trainings to Malaysians needing it so that they could be paid higher because of their skills and not because of some recommendation by any minister here in Malaysia.

Always remember that when costs are high and the company is unable to sustain itself, in the end even more people will be out of job. This is why it’s important to stay focused and do the necessary versus any populist measures.

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