Wage policies should factor in hourly productivity, says economist
Dr. Mohd Yusof Saari argues that Malaysia’s wage policies should shift towards measuring productivity based on hours worked to ensure fairer outcomes, particularly for semi-skilled and low-skilled workers. He highlights that many workers in these groups put in longer hours and greater effort but continue to receive relatively low wages. According to him, relying solely on general productivity indicators per worker risks treating wage increases as merely an operational cost for employers. Responding to a recent World Bank report, he emphasizes that wage policies should focus on aligning income growth with productivity and working time to improve equity and labour market outcomes.
03 June 2026 I FMT
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