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Increase productivity to justify minimum wage, says PSM

Monday, 21 November 2011 10:35am

©The Sun Daily (Used by permission)
by Alyaa Alhadjri

KUALA LUMPUR (Nov 20, 2011): The Selangor state government's decision to implement a minimum wage for staff of its wholly-owned subsidiaries should be closely monitored to ensure it is justified by increased productivity, said Parti Sosialis Malaysia (PSM) chairman Dr Nasir Hashim (pix).

Nasir, who is also the Kota Damansara state assemblyman, told theSun: "It is a balancing act which needs to be done in order to safeguard theinterests of the people."

Nasir said the rationale should also be extended to PKNS general manager Othman Omar who had reportedly received up to RM1.4 million in salary and bonuses from February 2009 till December last year.

The matter was first brought up by Selangor opposition leader Datuk Satim Diman at the state assembly earlier this month.

Mentri Besar Tan Sri Abdul Khalid Ibrahim had however said Othman's salary which amounted to RM39,933 a month was "reasonable" based on his responsibilities to manage assets of RM30 billion.

"The MB is a corporate man so he would know the value of retaining individuals," said Nasir who earlier officiated PSM's annual Socialist Forum at the Kuala Lumpur Chinese Assembly Hall here.

Despite describing Othman's monthly salary as a "scary" amount, Nasir admitted that it was a necessary move in order for companies to maintain a competitive edge.

Meanwhile, Nasir said the National Feedlot Centre (NFC) in Gemas has failed to justify the RM250 million soft loan extended by government. The project was mooted in 2008 to help meet 40% of local beef demands.

"Somebody must be made to answer as the loan is duit rakyat," he said, adding the decision to extend the loan to the company was questionable due to its owner's ties with Women, Community and Family Development Minister Datuk Seri Shahrizat Abdul Jalil.

The Auditor-General's Report was the first to raise concerns over the centre's operations, followed by a massive public outcry over what was eventually termed as the "cowgate" scandal.

Since then, National Feedlot Corporation executive chairman Datuk Seri Dr Mohamad Salleh Ismail had on Thursday denied allegations against his company, maintaining that it met the targets set by the government.

Mohamad Salleh is Shahrizat's husband.

Minister of Agriculture and Agro-based Industry Datuk Seri Noh Omar had on Saturday reportedly denied that Shahrizat had a hand in influencing the cabinet's decision to award NFC with the project.

Meanwhile, Institute for Democracy and Economic Affairs (Ideas) chief executive Wan Saiful Wan Jan noted that the whole scandal could have been avoided if NFC had obtained a loan from a commercial bank.

"The whole process would have been better managed and ensure that any problems will not fall on a politician," he said.

Wan Saiful said the government's practice of giving out loans to companies also contradicts Prime Minister Datuk Seri Najib Abdul Razak's goal to liberalise the country's economy.

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