‘Compensation of employees ratio to GDP will cross 33 pct’
Posted on June 13, 2014, Friday
KUALA LUMPUR: Malaysia’s compensation of employees ratio to the gross domestic product (GDP), which has been on an increasing trend, is expected to cross the 33 per cent level for 2013.
Minister in the Prime Minister’s Department Datuk Seri Wahid Omar said in 2012, the ratio stood at 32.9 per cent.
“For 2013, we expect it to grow more than 33 per cent. The official numbers will be released next month.
“As corporations do well, they tend to pay their staff better and according to a survey done by the Malaysian Employees Federation 2013, the average increase in salary is 6.0 per cent annually,” he told reporters after the 21st Nation Building Series dialogue, themed “Revisiting the New Economic Model” Wednesday night.
Wahid noted that the country had a long-term target to achieve 40 per cent of the ratio, however, he emphasised that higher salaries must come hand in hand with higher productivity. Turning to Malaysia’s current account balance, he said the days of narrowing surplus were behind us.
“We do not believe that we will get into that position because we continued to maintain a trade surplus position and a conducive investment environment, enabling us to attract foreign and domestic investments into Malaysia,” he added.
For the first quarter this year, the country recorded a higher surplus in the current account balance of RM19.8 billion from RM14.8 billion in the preceding quarter.
The growth was mainly attributed to a lower deficit in both primary income of RM6.4 billion and services accounts of RM2.7 billion. In the first quarter, trade in goods posted a slightly higher surplus of RM33.6 billion from RM33.3 billion recorded last year. — Bernama