Government Hints at Making Salary Hike Mandatory in Planned Progressive Wage Policy By Syed Jaymal Zahlid,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Government Hints at Making Salary Hike Mandatory in Planned Progressive Wage Policy By Syed Jaymal Zahlid, Tuesday, 11 Jul 2023, MalayMail.com KUALA LUMPUR, July 11 The federal government's plan to unveil a progressive wage model could entail making annual salary increments mandatory, Minister of Economy Rafizi Ramli suggested today as he described the wage model as one of the most "unpopular" reforms he would Implement as a policymaker. Raising pay was among the key election pledges of the ruling Pakatan Harapan (PH) coalition, which had vowed to carry out broad but painful reforms to reshape an economy driven largely by cheap labor. Rafizi's ministry has been tasked with overseeing the project, but the minister warned that a policy that may compel employers to raise pay periodically could face backlash. "There's an elephant in the room, which is wages," he responded to a question about how the Anwar administration plans to alleviate living cost pressure. "We will present to the government the policy paper for a progressive wage model in early August, and it is perhaps the most unpopular thing I have ever undertaken in my job as a minister because nobody (employers) will be happy, especially the (senior) lawyers because... nobody wants to raise wages," the Pandan MP added. "A progressive wage policy not only means a progressive increment every year, which means there is a certain level of annual increment that the economy has to commit, it also means the (wages) between the most senior partners and the most junior partners have to be adjusted." Details about the proposed wage model are scant but Rafizi's ministry had suggested that it would be a crucial policy fix to address long-standing structural defects in the economy that has allowed employers to suppress wages, which haven't kept up with inflation. Suppressed wagos have also led to fears about growing wealth inequality, especially between the country's top and bottom earners. Malaysia has faced increasing competition from neighboring countries that are also capitalizing on cheap labor, which economists said has limited Malaysia's wage growth. All answers must be supported with examples and application Ideas. QUESTION 1 The Government believes that the proposed progressive wage model will bridge the salary gap and as part of the proposed model, mandatory salary increments will be introduced annually to address wage inequality. Based on the above case study, answer the following questions: a. The Minister highlighted the possibility of facing backlash, particularly from senior lawyers and other employers who may be reluctant to increase wages. Determine what are the reasons behind this statement. (5 Marks) b. The Minister indicated that the policy aims to ensure annual salary increments aligned with a certain level of commitment from the economy. Discuss the issues Malaysian face related to the 'commitment from the economy'. (5 Marks) c. Based on the basic economy model of supply and demand, explain the impact of the progressive wage model on the overall market situation and consumer purchasing power. (5 Marks) [Total: 15 Marks] Government Hints at Making Salary Hike Mandatory in Planned Progressive Wage Policy By Syed Jaymal Zahlid, Tuesday, 11 Jul 2023, MalayMail.com KUALA LUMPUR, July 11 The federal government's plan to unveil a progressive wage model could entail making annual salary increments mandatory, Minister of Economy Rafizi Ramli suggested today as he described the wage model as one of the most "unpopular" reforms he would Implement as a policymaker. Raising pay was among the key election pledges of the ruling Pakatan Harapan (PH) coalition, which had vowed to carry out broad but painful reforms to reshape an economy driven largely by cheap labor. Rafizi's ministry has been tasked with overseeing the project, but the minister warned that a policy that may compel employers to raise pay periodically could face backlash. "There's an elephant in the room, which is wages," he responded to a question about how the Anwar administration plans to alleviate living cost pressure. "We will present to the government the policy paper for a progressive wage model in early August, and it is perhaps the most unpopular thing I have ever undertaken in my job as a minister because nobody (employers) will be happy, especially the (senior) lawyers because... nobody wants to raise wages," the Pandan MP added. "A progressive wage policy not only means a progressive increment every year, which means there is a certain level of annual increment that the economy has to commit, it also means the (wages) between the most senior partners and the most junior partners have to be adjusted." Details about the proposed wage model are scant but Rafizi's ministry had suggested that it would be a crucial policy fix to address long-standing structural defects in the economy that has allowed employers to suppress wages, which haven't kept up with inflation. Suppressed wagos have also led to fears about growing wealth inequality, especially between the country's top and bottom earners. Malaysia has faced increasing competition from neighboring countries that are also capitalizing on cheap labor, which economists said has limited Malaysia's wage growth. All answers must be supported with examples and application Ideas. QUESTION 1 The Government believes that the proposed progressive wage model will bridge the salary gap and as part of the proposed model, mandatory salary increments will be introduced annually to address wage inequality. Based on the above case study, answer the following questions: a. The Minister highlighted the possibility of facing backlash, particularly from senior lawyers and other employers who may be reluctant to increase wages. Determine what are the reasons behind this statement. (5 Marks) b. The Minister indicated that the policy aims to ensure annual salary increments aligned with a certain level of commitment from the economy. Discuss the issues Malaysian face related to the 'commitment from the economy'. (5 Marks) c. Based on the basic economy model of supply and demand, explain the impact of the progressive wage model on the overall market situation and consumer purchasing power. (5 Marks) [Total: 15 Marks]
Expert Answer:
Posted Date:
Students also viewed these general management questions
-
Identify in which ledger (general or subsidiary) each of the following accounts is shown: 1. Rent Expense 2. Accounts Receivable-Chen 3. Bank Loan Payable 4. Service Revenue 5. Salaries Payable 6....
-
The income statement for the year ended December 31, 2014, as well as the balance sheets as of December 31, 2014, and December 31, 2013, for Lucky Lady Inc. follow. This information is taken from the...
-
Describe how goodwill recognized in an asset acquisition leads to temporary book-tax differences.
-
Briefly describe how budgets can be used for communication, coordination, and resource planning.
-
Supernormal Growth Janicek Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 15 percent over the following year, and then 8...
-
Suppose that you have applied to two colleges and believe that you have a 0.80 probability of being accepted by college A, a 0.40 probability of being accepted by college B, and a 0.35 probability of...
-
MJ, Inc. made a $15,000 sale. Due to their weak competitive position, the firm had to offer trade credit terms of 30 days just to make the sale. Calculate the present value of MJ's sale assuming...
-
Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR), Legal, and Testing. In the most recent period, the following costs and...
-
Key dates: 1. It's 8/22/2022, and it's the start of clinical trials at the University of Oklahoma, who has partnered with the Stephenson Cancer Center 2. Follow the guidelines listed in the Ramp-Up...
-
4 M 1 2 3 4 5 Decide if the following five datasets are useful for a future analysis. Is this dataset useful? A dataset (often refereed to as a raw dataset) is ready to be analysed when: 1. Each case...
-
Cove's Cakes is a local bakery. Price and cost information follows: Price per cake 17.00 Variable cost per cake Ingredients 2.50 Direct labor 1.40 Overhead (box, etc.) 0.20 Fixed cost per month...
-
Question 13 Deflation is defined as a decrease in the general price level of goods and services, occurring when the inflation rate falls below 0%. The following passage from former Fed Chairman...
-
Marsellus is self-employed. He is supplied by and part owner of a large nursery and greenhouse which has retail sales, but his primary interest is his landscape design business. His specialty is...
-
You've been asked to take over leadership of a group of paralegals that once had a reputation for being a tight-knit, supportive team, but you quickly figure out that this team is in danger of...
Study smarter with the SolutionInn App