Marhaen, kayangan and the infuriating minimum wage debate

 

It felt a little odd to laud the announcement by Human Resources Minister M Saravanan that the monthly minimum wage would be adjusted to RM1,500 from its current figure of RM1,200 this year.

But credit where credit is due, it’s a much-needed adjustment and he’s taking the bull by the horns and taking a proactive step.

Of course, this was the cue for a chorus of the entitled captain of industries to defend their turf and ensure that the masses audacity in demanding a larger slice of the pie was quickly quashed.

Federation of Malaysian Manufacturers president Soh Thian Lai objected to the proposed increase, saying that a 25 percent jump was too drastic.

This followed on the heels of Malaysian Employers Federation president Syed Hussain Syed Husman who claimed that the minimum wage increase would derail our economic recovery, adding that the majority of Malaysian businesses are not ready and not in a position to implement the proposed new minimum wage as they are still reeling from the economic shock brought about by Covid-19 and the devastating impact of the recent major floods.

Federation of Malaysian Manufacturers president Soh Thian Lai

This is precisely what I despise about the model of unbridled trickle-down capitalist economics that we have here, where the filthy rich business owners get to influence and control policies that impact all of society.

Take one look at the credentials of the finance minister today and tell me if that man is a representative of the entitled elite group of ‘kayangans’ or if he has sympathies that lie with the common man, the ‘marhaen’.

Increasing costs

Now if you are reading this column on Malaysiakini, chances are that you belong to neither group. Like me, you’re probably from the English-speaking, urban, progressive middle-class watching helplessly as this country disintegrates in the hands of thieves and morons.

We know that we are coping with increasing costs all around. Energy bills, mortgages (despite the moratorium temporarily helping us out) food costs, rent, medical costs - they are all going up.

The people who are not really affected that much are the elite ‘kayangans’ who earn in the millions. Sure, it eats a little into their profits, but they are not suddenly facing life and death choices.

They even have the cheeky idea of ransacking the Employees Provident Fund which will clearly have catastrophic consequences in the future.

Yet, rather than help alleviate the sufferings of those at the bottom, they will fight tooth and nail to maintain their profit margins. Indeed, these are the same people who opposed the idea of the minimum wage to begin with and must surely be aware that the minimum wage was not reviewed in 2020.

Let’s see how they can live on RM1,200 a month, shall we?

Just yesterday, Prime Minister Ismail Sabri Yaakob said the government is holding engagement sessions with employers and other stakeholders on the minimum wage increase to enable it to be implemented holistically

"We are engaging all employers on this minimum wage because there are companies that can afford it but also companies that are too small and can't. We are afraid that if they can't afford it, they will retrench workers… which will add to unemployment numbers.

"We are not protecting employers, our interest is employees… if employees' minimum wage can be raised to RM1,500, that is for the best," he said, adding that the Human Resources Ministry would present the findings of the engagement sessions to the cabinet before the new minimum wage was approved.

As long as crony capitalists and the entitled elites are making the decisions, we will never arrive at the correct solution.

Reset needed

Honestly, we need a reset to reduce our reliance on poorly-paid foreign workers and offer Malaysians attractive jobs while businesses remain competitive. Do you know who really needs to make sacrifices then? The CEOs, the board of directors.

We need an honest amnesty and mass repatriation of hundreds of thousands of underpaid and undocumented foreign workers while streamlining the workforce.

Honestly, even RM1,500 is too low in the long run if we are to reach developed nation status. I mean that’s still part of the plan, right? Greater automation, a more skilled working class?

An honest government would push for the unexplained wealth order (such as that introduced in the UK) to investigate the super-rich and force them to invest in the economy.

If the country’s poor have greater purchasing power, it would mean a larger market in the long run for all our businesses. Instead of trickling down, it could be a bit more symbiotic.

Those rubber glove companies that avoided paying a large windfall tax by making a few tactical donations should also be held accountable. Both in terms of tax dollars and improving their workers’ living conditions.

There is no logic to our current system where the top of the T20 get to enjoy massive perks and salaries while insisting that there is not enough to go around to help those at the bottom cope with the spiralling cost of living.

I don’t have to list the sort of excesses to you. Your former premier Najib Abdul Razak appears to have set a gold standard, but one wonders just how many of our elite families will be able to stand up to the scrutiny of an honest audit and accounting of the tax they have contributed to the nation’s coffers.

One thing’s for sure. The minimum wage increase is a must for our workers. And it should not stop there. - Mkini

---

Martin Vengadesan is associate editor at Malaysiakini.