The bantuan subsidy upah was grossly inadequate. It was not effective to provide subsidy for bulk of wages cost - thus leading to job losses and subsequent lower salaries for average Malaysian workers. The cap on salary eligibility and number of workers, among others was counterproductive to an effective furlough program. Some industry like hospitality(hotel, mice, airlines etc) should have been given unconditional support.
There is a palpable and dogmatic sense of reluctance by the current PN-UMNO govt in deploying extraordinary fiscal measures to provide necessary albeit temporary support to businesses - economic engine. Without a commitment to properly weaponise fiscal measures, it would only exacerbate confidence (and trust) crisis in the current market - prolonging any meaningful recovery.
The lack of reforms during PH govt time is partly to be blamed. This is despite their commitment before GE13 to improve financial buffer esp among the more vulnerable to withstand income shocks:
- Roll back of Najib era cash transfer under the guise of a making it more targeted
- Inability to deliver RM1500 minimum wage - which by itself was measly to begin with
- Dismantling GST thus contributing to subsequent revenue shortfall for govt
- bulk of it went to the top 20% of income earners; instead of redirecting GST proceeds to robust cash transfer for the poor and improving public healthcare/education. That was ~RM20bil a year that could have went to improve public service delivery(think healthcare) and improve financial buffer to the most vulnerable against income shocks.
PH Govt pandered to the same Mahathir's dogma driven measures which exacerbate the recessions in mid 80s and late 90s. Though to be fair, some MPs esp from PKR & UMNO was vocal on this, but alas fell on deaf ears. PH govt mocked not just the letter but more importantly undermined the (Reformasi)intent/spirit of their own election promises.
Average Malaysian's salaries declined by 15%. Given CAGR of 6.5% for 7 years ending 2019, and considering how year 2021 is already worst than 2020, it would take at least 3-5 years before we recover to 2019's levels.
(Btw, median is more reflective of an average Malaysian's salary. Mean tend to be grossly distorted by those super high salaries in the T1%)
