Wage subsidy a bad idea, experts tell govt

[superadmin]

PETALING JAYA: The government’s decision to subsidise the private sector wage bill has drawn flak from various quarters.

Experts who spoke to FMT Business reiterated the fact that pay increases must be tied to raising productivity. They also expressed concern over the impact it will have on government expenditure.

Penjana Kapital CEO Taufiq Iskandar said wealth creation and income distribution should be based on productivity.

He said interventionist measures such as the proposed subsidy for private sector wages had proven essential to prevent unemployment.

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