Malaysia’s DPM calls for fair bonus distribution to boost productivity

Employers have been urged to provide fair benefits in recognition of skilled labour’s vital role in organisational performance.
By: | May 30, 2023

Highlighting the importance of recognising the stellar performance of employees, particularly those who have undergone reskilling or upskilling, Malaysia’s Deputy Prime Minister, Datuk Seri Dr Ahmad Zahid Hamidi, has urged organisations to fairly distribute bonuses to employees who contribute to increased productivity and profits.

Dr Zahid, who is also Malaysia’s Rural and Regional Development Minister, stressed that skilled labour plays a vital role in an organisation’s performance and benefits employers and stakeholders, an aspect he said is often overlooked. In support of trade unions, he called on employers to provide appropriate benefits to employees, considering the rising cost of living.

He said, “When training, upskilling or reskilling improves, productivity will increase, and this will lead to economic growth and benefit employers.”

Dr Zahid urged employers to appreciate employees’ contributions by providing them with proper bonuses and recommended conducting a study to determine the correlation between employee training and increased productivity and profits.

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He also expressed his willingness to increase the budget for the National Training Week (NTW) programme next year from RM250 million (US$54.4 million) to RM500 million (US$108.7 million). Additionally, he reiterated his recommendation for employers to offer a minimum monthly salary of RM3,000 (US$660) to Technical and Vocational Education and Training (TVET) graduates.

“Although employers’ associations may not agree, in a situation where training is given and to become a developed country and continue to develop and have high productivity, this must be met by employers,” he said, as reported by New Straits Times. “We understand that the investment is high and that investment returns are necessary for stakeholders and investors but let us work together so that employees are given a wage that commensurates with the training and skills they possess.”