KUALA LUMPUR: A 13-month salary idea was mooted by a lawmaker to increase the capital of everyday citizens and allow them to invest.
Sim Tze Tzin (PH - Bayan Baru) told Dewan Rakyat on Tuesday (Oct 22) that this would mean that employees would be paid a two-month salary in December.
He added that the extra month’s worth of salary can be used for investment and greater returns as well as cover other expenses like back-to-school spending.
“As ordinary citizens, we only rely on our salaries; we don't have the capital to invest and earn returns.
“Our salaries are 100% spent on daily living expenses. So how can ordinary workers obtain extra capital to invest?” he said.
He proposed the 13-month system to private companies and the government for consideration.
He added that the model has already been adopted in some private companies and it is very common in other countries.
Those with more capital find it easier to earn more compared to salaried workers living paycheck to paycheck, he said, referring to Thomas Piketty’s observations, author of the renowned book Capital in the 21st Century.
Separately, he also asked the Health Ministry whether there would be price control for private hospitals.
Sharing his own experience, he said that the hospital bill for his first child in a private hospital was slightly over RM2,000 but when his third child was born four years later, it was RM6,000.
“If we don't control private hospitals, patients who used to afford it previously will become unable to later on, and they will move to public hospitals.
“In the end, the government will be burdened with an increasing number of patients (in public hospitals),” he said.
