Inaccurate data pointed govt in wrong direction over aid spending for urban poor, says MTUC
PETALING JAYA: Policies to uplift the urban poor are ineffective because they were drawn up based on inaccurate data, the Malaysia Trade Union Congress said yesterday.
The poverty benchmark used by the government failed to capture the reality on the ground and this resulted in billions of ringgit spent wrongly, its secretary-general J. Solomon told theSun.
“The economic situation created by the Covid-19 pandemic has worsened the problems faced by this group.
“For decades, B40 workers have struggled with poverty while surviving on meagre salaries with little savings for emergencies. Many have to live in cramped conditions because they could not afford decent housing.”
Solomon said the public feels a sense of disconnect with poverty statistics because their income is barely enough to make ends meet, but yet official data states that there is hardly any poverty in the country.
He urged the government to re-examine the sample wage, as the current RM980 is too low for urban areas considering the living wage is estimated to be about RM2,700.
“Productivity has been used as an excuse since the 1970s to keep wages low,” Solomon said.
“How do you expect a person to be productive when he finds it difficult to survive?
“The government must take a quantum leap when it comes to wages. They should make it mandatory for companies to pay a living wage.”
Solomon suggested that for a start, a ceiling be set for the highest paid employees with government-linked companies (GLC).
“We see their wages going up and up but those at the lower end are finding it difficult to make ends meet,” he said.
Citing an example of plantations owned by GLC, he said many of them pay a minimum wage RM1,200.
“GLC who own plantations should heed government calls to reduce their reliance on foreign workers by adopting technology.”
“They can train local workers, and pay them a salary above the living wage.”
Malaysian Employers Federation executive director Datuk Shamsuddin Baradan said in March the number of people retrenched stood at 400,000. But by end-June, it was 600,000.
He said 60% of those who had been laid off were in the higher income bracket, including technicians, executives and managers.
Sunway University Business School Professor of Economics Dr Yeah Kim Leng said the urban poverty rate is estimated to be around 16% to 17% as workers are not able to generate enough funds to meet their needs.
“It also important for workers to upgrade their skills while at the same time raise productivity,” he said.
“There is also a need to raise the wages of skilled and unskilled workers but this has to be done in tandem with a rise in productivity. The depressed wages are due to the low productivity levels of workers.”
He added the government can help to reduce the cost of business through better efficiency, practices and delivery services.
“The government also needs to reduce the regulatory burden impose on businesses. It also needs to tackle corruption.”
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