Higher Starting Salaries Proposed to Boost Perak’s Economic Growth

Baku:Perak A proposed starting salary of RM2,500 for graduates and semi-skilled workers is being viewed as a significant opportunity for improving the quality of life for the younger generation. Mohamad Farid Faquan Sadarudin, a 41-year-old vehicle assembly industry worker, shared that it took him 11 years to earn a salary exceeding RM2,500. He believes that the proposed salary increase will allow new workers to start their careers on a stronger financial footing, given the rising costs of basic necessities.

According to BERNAMA News Agency, technician Mohd Ariff Farhan Kamarzaman expressed that the proposed wage policy could assist workers in planning for homeownership, building emergency savings, and obtaining private health insurance. Mohd Ariff, a diploma holder in Mechanical Engineering, emphasized how a salary increase would aid with household expenses and commitments, such as supporting parents and potentially owning a house, as his current rent ranges from RM500 to RM600.

Institut Darul Ridzuan (IDR) chief executive Dr. Zulqarnain Mohamad stated that the proposal could help curb labor migration from Perak by increasing the purchasing power of the people and boosting the state's economic growth. He noted that competitive salaries, combined with a relatively low cost of living, could attract workers to remain in Perak. Findings from the Perak State Budget 2027 Study highlighted utility costs as a primary financial challenge for residents.

Dr. Zulqarnain further explained that the development of five strategic growth hubs in Perak could drive demand for manpower if the policy were implemented. He mentioned that increasing the minimum wage could positively impact local businesses and encourage skilled and semi-skilled workers to remain or return to Perak.

Associate Professor Dr. Norasibah Abdul Jalil from Universiti Pendidikan Sultan Idris (UPSI) indicated that implementing a starting salary of RM2,500 for semi-skilled workers could enhance consumer spending, thereby stimulating economic activity in Perak. Simulation estimates suggest that the additional income for semi-skilled workers could significantly increase consumer spending, benefiting sectors like trade, hospitality, tourism, and food and beverage services.

The proposed salary increase aligns with Perak Sejahtera 2030's aspiration to strengthen the state's economy and improve residents' well-being by raising economic opportunities and incomes throughout the region.