Malaysiakini, 1 June 2010 -- Parti Sosialis Malaysia (PSM) calls for a minimum living wage law to be enacted first, before the government considers withdrawing the various subsidies which is sustaining the lower-income group that consists of 60 percent of households in the country.

Party deputy secretary-general Rani Rasiah said, “For the working people, subsidies compensate somewhat for the government's low-wage policy and the reality of high living costs.
“Without such laws to ensure the producers of wealth are paid a just wage, it would be completely irresponsible of the government to do away with subsidies.”
She claimed that the government is prepared to further enrich the wealthy and the foreign investors with Malaysia'slow wage structure, but chooses to be politically blind to the plight of working class citizens who have been stuck with low wages for the past 52 years.
Rani explained that a minimum wage structure to reflect current economic situation will:
* enhance the productivity of Malaysians to further drive the country's economy.
* reduce the dependency of cheap foreign labour force which contributes to the social ills in the country.
* create a local purchasing power force that can stimulate the economy of a nation currently dependent on foreign investments.
* reduce Malaysians' dependency on government subsidies.
She points out that the government prefers to avoid the bigger picture of public funds being squandered through numerous wasteful white elephant projects in the country, illegal and astronomical awards of kickbacks and the billions siphoned off in high-powered corrupt deals.
'Provide quality services first'
Instead, says Rani, the governments makes the public a punching bag for all its political and economic mismanagement that has driven the nation to the brink of bankruptcy, with its debt of RM362 billion and fiscal deficit of RM47 billion.
She says the PSM condemns the government for seeking to exonerate themselves by laying the blame on the cost of subsidies, and denounces the government's charade of consulting the people (right) on the matter, after squandering away public funds.
The socialist party wants the government to ensure healthcare and education services remain nationalised, and continually developed and improved.
“It is the responsibility of the government to provide quality healthcare and education, cheaply or at subsidised rates to the people,” she said.
She said PSM was not adverse to the removal of the fuel subsidy in view of our fast depleting resources, and in the interest of the environment.
However, she qualified that the subsidy removal must only come after the government establishes an efficient and cheap system of public transport that will offer people a viable alternative.