Wage policies should factor in hourly productivity, says economist

Wage policies should factor in hourly productivity, says economist

Dr. Mohd Yusof Saari argues that Malaysia’s wage policies should focus more on hourly productivity and working time to ensure fairer compensation, particularly for semi- and low-skilled workers. He stresses that wage growth should not be viewed merely as a cost to employers, but should reflect efficiency and productivity across different worker groups. Given that lower-skilled workers often work longer hours for lower pay, he advocates stronger productivity-linked wage progression to improve income distribution and support the majority of the labour force.

03 June 2026 I FMT

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