KUALA LUMPUR, Aug 14 (Bernama) — The implementation\u00a0of the RM1,500 minimum wage\u00a0will be carried out gradually\u00a0to allow a recovery in the country\u2019s economy, said Prime Minister Tun Dr Mahathir Mohamad.<\/p>\n
He said if Malaysia starts spending money which it does not have, it would\u00a0not be good for the country in the long run.<\/p>\n
\u201cIf we push for higher minimum wages, cost of production will go up and we will not be competitive. The cost of living will also increase, hence people cannot buy what they used to buy,\u201d he told reporters during a media conference in the Parliament here today.<\/p>\n
Dr Mahathir instead suggested the country to have a minimum wage which correlates with\u00a0productivity.<\/p>\n
\u201cProductivity must improve with higher wages. If it does not improve then the cost of living will go up and higher wages will not give you additional purchasing power,\u201d he said.<\/p>\n
On August 10, the Prime Minister said that the increase in\u00a0minimum wages in Malaysia would be done gradually and that there would be no salary review for civil servants for now,\u00a0as the government needs give priority to repaying the nation’s debts.<\/p>\n
The nationwide standardisation of the minimum wage (RM1,500) was\u00a0part of the Pakatan Harapan coalition’s election manifesto.<\/p>\n
Currently, the minimum wage in Peninsular Malaysia is RM1,000 and RM920 in Sabah and Sarawak.<\/p>\n
Dr Mahathir said that priority to increase the minimum wages would\u00a0be given to residents in\u00a0Sabah and Sarawak.<\/p>\n