The Federation of Malaysian Manufacturers (FMM) stated that the pilot Progressive Wage Model (PWM) introduction would help identify system weaknesses and enable it to be improved.
It noted that the industry was in favor of the government’s flexible and voluntary approach to the PWM implementation, which addressed FMM’s call for flexibility in the system.
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“We have said earlier that the introduction must be according to the affordability, profitability and competitiveness of the industries,” FMM president Tan Sri Soh Thian Lai said in a statement on Friday (Dec 1).
“It would be a boost to the small and medium enterprises (SMEs) which may be keen to take up the PWM but face resource limitations.
Soh mentioned that while the White Paper revealed details on the incentives, it was uncertain if they would be adequate as the salary amount was yet to be determined.
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“Indeed the key will be an increase in productivity, which will act as an impetus for SMEs to implement PWM, which would be recognised by multinational companies as they too will reap the benefit of higher productivity levels.
“However, it will be more effective if PWM is rolled out by sectors and skill categories rather than across the board,” he added.
Soh said the industry was aware that one of the criteria for the payment of the PWM incentive would be the need to submit proof of the employees’ participation in upskilling, which must be relevant and certified by the government.
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“While we agree with the certification, there should be no control on the service providers conducting the training courses as long as they meet the necessary requirements.
“There must be participation of the private sector in the Special Cabinet Committee on Progressive Wage Policy Implementation to offer input.
“The focus is to drive economic growth as the manufacturing sector play a critical role in the New Industrial Master Plan,” he said.
