Malaysian Prime Minister Anwar Ibrahim says pay hike of greater than 13 % can be ‘finest enhance in historical past’.
Malaysian Prime Minister Anwar Ibrahim has introduced a file hike in civil servants’ pay of greater than 13 %, amid rising costs and a weakening native foreign money.
In a speech to mark Labour Day on Wednesday, Anwar stated 10 billion ringgit ($2.10bn) can be allotted to assist the “finest enhance in historical past” from December.
Anwar, who can also be finance minister, stated the wage hike would make sure that civil servants earn a minimal earnings of two,000 ringgit ($420) per thirty days.
“Presently the general minimal earnings, which incorporates wage and glued allowances, is 1,795RM per thirty days,” Anwar was quoted as saying by state-run information company Bernama.
Anwar additionally known as on corporations making “enormous earnings” to share their positive aspects by elevating wages for his or her staff.
The Malaysian chief, who final yr flagged plans to extend taxes and lower subsidies to shore up the nation’s funds, made the announcement as a decline within the worth of the ringgit places stress on family budgets.
The ringgit has misplaced almost 4 % of its worth in opposition to the US greenback to date this yr.
In February, the foreign money slumped to a 26-year low, dropping to 4.7965 ringgit per greenback, decrease than at any level for the reason that 1998 Asian monetary disaster.
Whereas serving to exporters to promote their merchandise extra cheaply abroad, the foreign money’s slide has raised the price of important imports, together with meals and gas.
Anwar has described the foreign money’s slide as “regarding” however “beneath management.”
Southeast Asia’s fifth-largest economic system grew 3.7 % final yr, under authorities projections and sharply down from a 22-year excessive of 8.7 % in 2022.
Gross home product (GDP) expanded an estimated 3.9 % within the first quarter of this yr, based on advance estimates launched by the nation’s statistics company.
Malaysia’s central financial institution has stated it expects GDP development of 4-5 % in 2024.