The president of the Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry, Nivas Ragavan, has suggested that the government implement a progressive wage model in the “4D” sectors (dirty, dangerous, difficult, and demeaning) to attract local workers. According to Ragavan, issues such as skills mismatch and low wages are hindering the country’s progress towards becoming a high-income nation despite government efforts to upskill and reskill workers.
Ragavan stated that the current multi-tiered levy system may not be the best policy for industries such as manufacturing, plantation, services, and construction, which contribute significantly to the country’s GDP and economic growth. He also argued that automation would not be suitable for certain sector-oriented industries like goldsmiths, barbershops, and the textile industry.
While automation and mechanization are feasible in the manufacturing sector, they are less applicable in service-oriented sectors like barbershops and textiles, which recently received approval for recruiting and renewing permits for foreign workers. Ragavan added that small and medium-sized enterprises would struggle with automation due to a lack of grants and strict requirements for automation matching grants.
These factors could lead to an increase in the cost of living and adversely impact the sustainability of businesses, as the multi-tiered levy system would raise their production costs, explained Ragavan.
