Tok Pa: RM3,000 ‘higher’ – but not high – income

Mustapa today credited Mida for the definition of “higher” income. — file pic

KUALA LUMPUR, Jan 21 — Datuk Seri Mustapa Mohamed acknowledged today there was confusion over his calling a RM3,000 monthly wage as high income, saying it was actually the Malaysian Investment Development Authority’s (Mida) definition of “higher” income.

The International Trade and Industry Minister said he had merely been pointing out that RM7 billion in investments last year had created relatively higher paying manufacturing jobs, when commenting on the topic earlier this week.

“There’s been some confusion,” he told reporters after the Ministry of International Trade and Industry’s (MITI) dialogue session with business councils here.

“I’m not talking about high-income economy. I’m talking about Mida having the ability to attract higher paying jobs.”

Mustapa said some 70 per cent of jobs created last year through investments procured by Mida were “quality jobs” — according to the investment development body — that paid salaries of RM3,000 per month.

He said this was “evidence” that Malaysia had managed to move up the value chain by attracting quality investments, as manufacturing jobs previously paid RM1,000 to RM2,000 per month.

Mustapa also stressed that Mida’s definition also took into consideration other variables, such as whether the work was value-adding, knowledge- and skills-intensive or required high technology.

High income would be between RM8,000 and RM10,000, he added.

The Malaysian Insider reported on Tuesday that Mustapa’s ministry would use RM3,000 per month in salary as a temporary proxy for high-income jobs.

He had said that RM3,000 was a “reasonable income” for someone in the Klang Valley and that it was good income for regions such as the east coast and East Malaysia, but added that the definition was still evolving.

“You won’t be rich (with RM3,000) but you can survive,” Mustapa had said.

Malaysia is hoping to become a high-income nation with per capita gross national income of US$15,000 by 2020, or about RM45,500 based on the exchange rate in August 2010 when the goal was announced.

The Economic Transformation Programme (ETP) launched last year aims to create a further 3.3 million jobs “with a shift to medium and high-income salaries” through various projects in National Key Economic Areas (NKEA).

Inflation, however, has become a major concern, with the rising cost of living eroding the purchasing power of Malaysian salaries.

The prospect of the removal of subsidies which could further spur price increases could further erode the earning power of Malaysians.

Malaysians currently enjoy subsidies in various essentials such as electricity, petrol, sugar and cooking oil. - Malaysian Insider