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Friday, January 21, 2022

Basic food prices racing ahead of minimum wage, says study

 

A study comparing the prices of essential food items and the 2022 minimum wage ranks Malaysia at No. 45 out of 64 countries.

PETALING JAYA: Malaysia has been placed 45th out of 64 countries in a study comparing basic food costs with the minimum wage.

According to a report by an international e-commerce company, Picodi.com, basic food sufficient to meet the minimum nutrient requirements amounts to 35.3% of Malaysia’s minimum wage this year.

“Food preferences and perceptions of a comfortable life vary from region to region, and even from person to person,” it said.

“We decided to compare the prices of basic food products with the minimum wage to see how much of the minimum income a person has to spend on necessary products.

“A year ago, the basic food products amounted to 34.5% of the minimum wage. This means that prices have risen faster than the minimum wage in Malaysia.”

The list of basic food products comprises bread, milk, eggs, rice, cheese, meat, fruits and vegetables.

A comparison of the prices of basic food products with the minimum wage in Malaysia. (Source: Picodi.com)

These were deemed sufficient to meet the minimum nutrient requirements of the average adult and valued at RM372 at the beginning of 2022.

“Malaysia is ahead of countries like Brazil (36.6% and 49th place), Thailand (52.7% and 57th place) and Indonesia (52.9% and 58th place),” it said.

Additionally, Malaysia came in 55th place in the minimum wage ranking. The list only includes the net amount the employee receives in cash or in his bank account.

“Minimum wage has not changed in 10 countries compared to the previous year,” Picodi.com said.

The minimum wage of a worker is RM1,200 a month at present in the peninsula and RM1,100 in Sabah and Sarawak, enforced from Feb 1, 2020.

The Malaysian Trades Union Congress (MTUC) said the government is required to increase the minimum wage biennially and has proposed that the wages be RM1,500 in the peninsula this year. - FMT

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