Pakatan’s proposal on setting RM1,500 as the minimum wage threshold is unrealistic and does not take into account of the current and future economic situations, and is also contradicted with its request for government subsidies, and shows that Pakatan Harapan lacks the vision and capability to manage the country’s finances.

On the contrary, the federal government is gradually raising the minimum wage threshold despite global economic uncertainty and challenging domestic economic climate, which not only helps the people raise their income levels and stimulate domestic consumption, but would not burden the business corporations as well. This is in fact a win-win situation where the people and businesses both benefit.

Pakatan’s hasty proposal to raise the minimum wage threshold will only increase the cost of doing business, especially in the face of global economic uncertainty, which ultimately put more pressure on the local businesses. This action is akin to killing goose that lays the golden eggs, which is unrealistic and unreasonable.

On the other hand, the BN-led government is adopting a step-by-step approach in implementing the minimum wage proposal to alleviate its impacts on the present business community.

What is even more ridiculous is that the Pakatan proposed that the federal government subsidised the RM1,500 minimum wage amount, which not only cannot solve the problem, but will also increase the government’s financial burden. It is important to increase the income levels of the people, but not through absurd and impractical suggestions, which expect the government and the private sector to bear RM2.5 billion in total.

Back to the basics, Pakatan does not mention anything about increasing the country’s tax revenues amid the challenges of reduced oil revenues and without additional income generation, how can Pakatan cope with the proposed expenditures with such suggestion? Obviously, Pakatan has brought forward this suggestion without much consideration.

In Budget 2017, the government has reduced the burden of local businesses by lowering the tax rate for all small and medium enterprises (SMEs) on chargeable income up to the first RM500,000 to 18 percent, which further alleviate the burden on local businesses.

Meanwhile, the government has allocated RM6.7 billion for the development of SMEs and RM70 million for the implementation of the Blueprint for SMEs, all of which help to alleviate the current economic pressure faced by the nation.

A responsible government shall assist the people wherever possible, though with limited resources, as to help improve the people’s standards of living, such as raising the education levels and improving the health facilities, rather than coming up with short-sighted solutions to solve the present problems. Obviously, Pakatan lacks the vision and capability in managing the country’s finances, and only tries to please the people with a populist policy.

LAU CHIN KOK is MCA publicity bureau deputy chairperson and MCA Youth Technical Vocational Education Training (TVET) Bureau chairperson.