YOURSAY | Rakyat want smarter wages, taxes to ease cost squeeze

Rakyat are calling for more targeted and rational wage structures to address the cost of living squeeze. The government is considering reviewing the RM1,700 minimum wage and even integrating GST elements into a new social security tax system. However, some argue that a uniform minimum wage increase may not be the best approach, as it could place a heavy financial burden on small businesses.

Instead, they suggest introducing a cost of living allowance (Cola) that varies based on the employee's location. For instance, an employee in Kuala Lumpur could receive a Cola of RM300 per month, while someone in Kota Bharu or Ipoh might receive a lower amount like RM100 or RM200. This approach could help protect employees while allowing businesses to maintain profitability.

Critics, however, argue that any wage increase will ultimately be passed on to consumers through higher prices, and a properly structured Cola system could mitigate this impact. They also emphasize the importance of considering regional cost-of-living differences when determining wages. Ultimately, stakeholders stress the need for a sustainable and equitable wage framework that balances employee welfare with business sustainability and the overall competitiveness of the Malaysian economy.