KUALA LUMPUR: The National Wages Consultative Council's role will be strengthened, including through benchmarking against similar organisations overseas, to provide a more holistic wage ecosystem and lessen disparities.
According to the Economic Outlook 2025 report released by the Finance Ministry on Friday (Oct 18), the Fair Work Commission in Australia and the National Wage Council in Singapore are examples of organisations that may be used as benchmarks.
The report said the government will improve collective bargaining coverage through better collaboration to enhance wage structure and non-wage benefits.
"The government is exploring the provision of starting salary guidelines, taking into consideration various aspects, including workers' educational qualifications, experience, skills category and location for better compensation," the report said.
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In addition, under the GEAR-UP initiative, government-linked investment companies (GLICs) and government-linked companies (GLCs) are committed to setting an example for the corporate sector by seeing that all employees in their organisations and ecosystems receive a decent monthly living wage, aligning future adjustments with productivity improvements.
"Collectively, these measures will help build a more balanced wage-setting mechanism that can significantly boost productivity and business expansion, leading to higher compensation of employees and fostering inclusive economic development,” the report added.
In addition, it stated that Budget 2025 will focus on the Orang Asli community, persons with disabilities (PwD) and other vulnerable groups to reduce inequality and enhance inclusivity.
It said the government will continue to provide a specialised education system and infrastructure to enhance the economic participation of these targeted communities through job and entrepreneurship opportunities and wage equality.
In addition, the government will incentivise employers to hire women returning from career breaks, provide employment matching services, enhance affordable care services facilities, and offer flexible work arrangements to attract and retain talent.
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"Widening civil society engagement and supporting grassroots initiatives that advocate for the needs and rights of these communities can also help build a more inclusive and equitable society," the report said.
In addition, Budget 2025 will concentrate on a holistic and inclusive approach to governance, focusing on social, economic and political stability to ensure that Malaysia continues on its development trajectory and prospers.
According to the report, the approach supports the national strategy of "raising the floor", which aims to create a more equitable society by uplifting those at the bottom of the economic spectrum, ensuring everyone possesses adequate levels of dignity and economic security.
The report highlighted that Budget 2025 must emphasise providing respectable jobs and a decent standard of living, ensuring equality and inclusivity, and enhancing universal access to quality education and healthcare services.
This includes world-class infrastructure and social protection while preserving heritage, sovereignty and principles, it added. – Bernama
