Workers at a construction site. An economist says while the minimum wage policy is well-intentioned, it often produces unintended outcomes.
Ferlito told FMT that whereas a full employment situation would usually mean that employers must pay more to attract workers, a high unemployment context required workers to adapt to the market. Ferlito said these factors were all the more relevant with unemployment rising and businesses still suffering from the effects of the Covid-19 movement control order.
Last week, the Department of Statistics revised Malaysia’s poverty line income to RM2,208, more than double the previous benchmark of RM980. He told FMT the congress had always maintained that workers were entitled to receive a “living wage” of RM2,700, especially considering the higher costs of urban living.