IN A report published by Bank Negara Malaysia (BNM) in 2018, it was revealed that for an individual to survive in the Klang Valley, they would need a “living wage” of RM2,700 a month.

It has been six years since the survey was made public and it needs no rocket science to conclude that the said figure requires further calibration on account of inflationary trends and in my view the current inflationary adjusted figure ought to be, conservatively, about RM 3,000.

When the inflationary adjusted figure is examined in the context of the national minimum wage which is currently at RM 1,500 and “uplifted” to RM 1,700 effective Feb 1, 2025, we need to ponder whether our working-class population – either by design or on account of the government pandering to the economic interest of the economic elitist – are being conscripted to wallow in the depths of poverty just so the employers’ lobby is appeased.

Given that the newly minted minimum wage of RM 1,700 is grossly undervalued vis-à-vis the prevailing cost of living factors, workers are likely to either work overtime on rest days and even public holidays (if such extra work is available) or alternatively, resort to taking on additional part time jobs to eke out a sustainable income.

And the consequence of working excessive hours seems to contribute to the global deaths of some 745,000 workers annually according to a past World Health Organisation (WHO) /International Labour Organisation (ILO) study.

This begs the question: is a recently reported death of a seemingly healthy Malaysian working long hours juggling time between more than one job just the tip of the iceberg in the said equation?

It cannot also be denied that deteriorating mental health of workers brought about by financial stress would result in a lack of concentration at work, enforced medically-approved leave of absence and increased cost of health care which, in turn, results in loss of productivity.

Increasingly there seems to be a nexus between financial distress and workers’ mental health including sudden death. In Japan it is termed “karoshi” which is translated to mean “overwork death”.

Given the fact that the country’s Compensation Of Employees (COE) share to Gross Domestic Product (GDP) is only at 32.4% (in 2022) it cannot be denied that wages need to be progressively improved if the nation is to attain the desired high-income status and, in the process, provide workers with a living wage.

But given the unrealistic minimum wage of RM 1,700 per month as opposed to even the 2018 BNM-suggested living wage of RM 2,700 for an individual, it would only be wistful to harbour hopes of achieving a high-income wage nation in the next decade or so.

In the circumstances the only forward path to elevate – if not to eradicate – financial constraints confronting the working population is to implement a transformation of the prevailing wage ecosystem.

This is done by enforcing an annual wage adjustment system wherein all employers shall be compelled to improve wages to ensure that wages progress and not remain stagnant as it is believed to be the case currently.

As was voiced by a prominent businessman recently, volunteerism does not resonate with the employers. They need to be compelled to raise wages to ensure that our working population are paid a fair living wage which would free them from long working hours, juggling between jobs and, most importantly, relieving them from financial distress. – Oct 21, 2024

K. Veeriah is the secretary of the Malaysian Trades Union Congress (Penang division). 

https://focusmalaysia.my/low-wages-and-its-impact-on-workers-mental-health/