Malaysia told to get saving

Malaysia told to get saving

KUALA LUMPUR (AFP): Malaysian Premier Mahathir Mohamad pushed the private sector to trim high salaries now paid to its senior executives in the wake of the current economic turmoil, reports said yesterday.

"One reason for a company's high operating costs is excessive salaries for top and middle-rung staff, like engineers fresh from university," Mahathir was quoted as saying by Bernama news agency.

The prime minister also urged the private sector not to accommodate demands by officers or executives, like engineers, for salaries twice or triple the normal rate.

Anwar Ibrahim, the deputy premier, last week said the government would cut the salaries of ministers and senior government officers as part of austerity measures to instill confidence in the financial system.

Mahathir chided professionals who are fresh graduates for fixing their "worth" well in advance of accepting private sector job offers.

"They determine what should be paid to them," the prime minister said.

Since the depreciation of the Thai baht on July 2, the Malaysian ringgit has shed almost 48 percent against the dollar while 50 percent of the stock market's capitalization has been wiped out.

Mahathir also said that the government would investigate the reasons and causes of price increases of consumer goods.

"I want to know the reasons," he said, adding that the government may be compelled to enact laws to prevent certain groups from profiteering.

News reports said that prices of essential commodities such as sugar, milk, onions and fish had risen in recent weeks.

Economists say any increase in the prices of essential items would fuel inflation and would subsequently drive workers to demand higher wages.

Inflation stood at 3.5 percent last year and is expected to increase to 4 percent early next year.

The central bank has pledged to curb the rise in inflation at below 4 percent this year.