PETALING JAYA: The National Cost of Living Action Plan 2030 (NCLAP30) must go beyond controlling prices and focus on raising household incomes and productivity to curb rising living costs, says the Malaysian Employers Federation (MEF).
Its senior advisor Datuk Dr Syed Hussain Syed Husman (pic) said the government must establish clear targets, assign responsibilities to implementing agencies and publish regular progress reports in implementing the plan.
“Managing the cost of living requires more than controlling prices.
“It is equally important to ensure that cost-of-living policies take into account the broader factors affecting household purchasing power, including the cost of essential goods and services, productivity growth, skills development and the availability of higher-value employment opportunities,” said Syed Hussain.
He added that wage increases must be accompanied by measures that enable businesses to become more productive and competitive so that higher incomes can be sustained without creating unnecessary inflationary pressure.
“Malaysia must move beyond an approach centred solely on increasing the minimum wage towards a broader strategy of raising productivity and enabling workers to progress to higher-paying jobs.
“The objective should be to ensure that wage growth is supported by genuine improvements in productivity and economic value creation,” said Syed Hussain.
He added that this allows workers to enjoy higher real incomes while enabling businesses to remain viable, invest and create better employment opportunities.
“NCLAP30’s success should ultimately be measured by tangible improvements in household purchasing power, cost efficiency and the overall quality of life,” added Syed Hussain.
