GOVT TO INTENSIFY LABOUR MARKET REFORMS IN 2024 -- RAFIZI
The government will intensify its labour market reforms in 2024, including reducing dependency on foreign labour, said Economy Minister Rafizi Ramli.
He said the government would put a timeline and systems in place to reduce dependency on foreign labour.
“To employers out there, it (labour market reforms) is coming. However, I am not convinced that reducing dependency on foreign labour will happen with just an order or instruction.
“What we need to do is to first build the support system, then you can turn the button on,” said Rafizi during the “Sembang Santai Bersama Menteri Ekonomi” programme, in conjunction with the Madani Government's First Anniversary Programme at Bukit Jalil National Stadium.
Among other efforts for labour market reforms in 2024 include the pilot project for progressive wage policy with the first 1,000 companies from June to September to sort out any teething or operational issues, he said.
“From 2025 onwards, it is justified for the government to set aside some allocation to ensure a sustainable increase in wage level year after year. Our goal is for employee compensation to account for 40% of GDP initially and increase to 45% in 10 years,” he added.
Rafizi also said most of the economic structure decisions have already been made in 2023, such as targeted subsidies and energy transition.
“Any big shifts in the economy will not happen overnight. The test of any government, especially this government, is how we can stay on course because it will take some time for a shift to happen.
“If I were to run an organisation or a big company, I would be mindful to separate and differentiate between superficial growth and sustainable business model that people after me can build on to make sure that not only they have financial resources and capability but also an ecosystem that can enhance their strength,” he added.
The Madani Government's First Anniversary Programme, which ends on 10th December, is aimed at disseminating and promoting the policies and initiatives introduced by the Unity Government since taking over the administration of the country on 24th November, 2023.