Despite a long presence in Malaysia, the contribution of foreign insurers to the overall development of the domestic insurance industry has not been at the level expected.
KUALA LUMPUR: The monthly income of RM2,700 published in Bank Negara Malaysia's (BNM) 2017 Annual Report is a provisional estimate of a living wage for a single adult in the capital, which does not refer to the median income.
FactWatch.my, an initiative by BNM, said the concept of living wage was also different from the minimum wage and hence, did not supersede the relevance of the current minimum wage of between RM920 and RM1,000.
“The living wage is a guide on the income needed to attain a minimum acceptable living standard.
“In addition to meeting basic needs, the living wage also provides for a meaningful participation in society, the opportunity for personal and family development, and freedom from severe financial stress,” it said.
FactWatch.my was responding to Malaysian Trades Union Congress (MTUC) Secretary-General J. Solomon's claim that BNM suggested RM2,700 as a median income for a single adult in the city.
It said the living wage also served as a guide for employers to consider paying employees according to the needs of a minimum acceptable living standard.
However, the ability to pay a living wage should be assessed with due consideration to employees' productivity, so that it does not translate into unwarranted increase in cost that might lead to higher inflation, it added. - Bernama
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