DAP calls for the minimum wage to be increased to RM1,200 monthly to be applied equally to both Peninsular Malaysia as well as Sabah and Sarawak. However foreign workers should not benefit from this ruling for at least 5 years to allow local employers, especially Small and Medium entreprises (SMEs), time to adjust.
With the rising cost of living and the extra costs posed by the implementation of GST, the present minimum wage of RM1,000 for Peninsular Malaysia and RM920 for Labuan, Sabah and Sarawak is too low. If government servants’ salary can also be adjusted to be higher than RM1,200 monthly, there is no reason why workers in the private sector cannot benefit.
The Federal government should also offer generous financial assistance to local employers and SMEs to overcome the higher cost from the higher minimum wage. Without the costs associated with the RM50 billion 1MDB scandal, funding for local employers and local workers can be easily available.
Historic First Time Ever Default Of A USD 1.75 Billion Bond By A Government Entity(1MDB) May Lead To Debt Payouts Equivalent To 0.5% Of GDP.
DAP condemns the historic first time ever default by a government entity, 1MDB, of a USD 1.75 billion bond that may lead to debt payouts equivalent to 0.5% of GDP. International Petroleum Investment Corporation(IPIC) had guaranteed USD 3.5 billion of bonds for 1MDB and promised to pay regular interest payments of USD 50 million. There was a default as this USD 50 million payment was not paid on time.
In exchange, 1MDB is supposed to transfer some assets and make payments amounting to billions of US dollars to IPIC’s Aabar, which IPIC shockingly claimed never to have received them. The statement by 1MDB confirming the default of a USD 1.75 billion bond has ramifications beyond the immediate holders of the bonds. This is an unprecedented and historic default by a government entity, whose advisory body is chaired by the Prime Minister himself, because it will trigger cross-defaults of billions of US dollars in other government bonds and loans.
Moody’s Investors Service estimates that Malaysia might have to pay out the equivalent of 0.5% of GSP. Worse if Malaysia’s contingent liabilities under the default by 1MDB are taken into account, Moody estimates could amount to about USD 7.5 billion (RM 30 billion). This is equivalent to about 2.5% of Malaysia’s GDP in 2015.
For this reason, 1MDB RM 50 billion scandal is a huge cost to Malaysians. Without 1MDB, Malaysia would not have to impose GST. Without 1MDB Malaysians would be able to enjoy a higher minimum wage of RM1,200 monthly for all Malaysians, including Sabah and Sarawak(with a grace period of at least 5 years exempting foreign workers), together with generous financial assistance to local employers to adjust.