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.