PWM to be Implemented in Retail and Food Services Sectors in 2–3 Years

Previously, it was reported that the Progressive Wage Model (PWM) model might be implemented in the retail and food services industries.

Now, it’s been confirmed.

PWM to be Implemented in Retail and Food Services Sectors in 2–3 Years; to Benefit 80,000 Workers

On Wednesday (3 Mar), it was announced that the PWM will be expanded to workers in the food services and retail sectors.

This move is expected to lift the wages of around 80,000 local workers.

The extension of the framework has been studied for some time, Senior Minister of State for Manpower Zaqy Mohamad said.

The roll-out is expected to take two to three years, and committees made up of unions, employers and the Government have been set up to recommend the schedule and implementation by the end of this year.

When the PWM is rolled out to the retail and food services sector, it’ll cover around 218,000 workers.

PWM Has Helped The Security Sector

Using the security sector as an example, Mr Zaqy pointed out that PWM has helped create “improved” working conditions for the workers.

Besides that, they’re also seeing roles transformed, with security guards changing from simply “watchmen” to skilled professionals, aided by technology.

Which makes sense, especially if you know how PWM works.

He added that there are 6% more locals joining the security sector every year between 2015 and now.

Vocational PWM

On a separate note, however, there are still issues with the PWM that is waiting to be solved.

Mr Gerald Giam, a Workers’ Party (WP) Member of Parliament (MP), called for an extension of PWM to workers who are in those jobs but employed in another sector.

An example would be cleaners employed in hotels.

Acknowledging that it is an issue, Mr Zaqy said they’re consulting with key sectors on how to extend PWM to around 50,000 of these workers.

Previously, it was also proposed that safeguards must be put into place by the time PWM rolls out to more sectors.

It was suggested that the “vertical approach” PWM currently employs might not work as well in the retail and F&B sectors.

Other than PWM, there are also other measures such as the Workfare Income Supplement scheme covering full-time, part-time workers, and the self-employed.

Mr Zaqy says that even as they increase the wages of lower-wage workers, keeping them employed continues to be the “highest priority”.

On a separate note, if you’ll like to know more about the PWM, you can check out this comprehensive article we have here.

Feature Image: Sorbis /