The objective of the thesis is to investigate Malaysia’s pay determinants from three different perspectives, namely: employees’ perspective, employers’ perspective, and both employees-employers’ perspectives. As a matter of fact, previous studies have not been able to document the potential impact of employers and firms on pay determinants within the Malaysian economy, owing to a lack of appropriate data. Therefore, with the availability of new datasets – worker-level dataset (WLD) and firm-level dataset (FLD) obtained from the Second Malaysian Productivity Investment Climate Survey (PICS-2), we have developed a matched-worker-firm dataset (MWFD), so that by employing such dataset it will add a new dimension to pay analysis in Malaysia as well as allowing for a comprehensive understanding and clearer picture of Malaysia’s pay system. From the employees’ prospective, the findings of this thesis indicate that a worker with a higher education level, skills and training generally gets a higher pay compared to those without. In addition, a worker who undergoes training from his/her current employer gets a higher pay compared to those who had training from a previous employer or only off-the-job training. At the same time, workers with complex computer skills, as well as those who are in professional employment and management, also receive a considerably higher pay. From the employers’ prospective, however, the findings indicate that firm size, human capital stock in the firm, worker performance, capital stock, and firm performance are important factors that affect the Malaysian average monthly pay. Besides, the elasticity of pay with respect to employer size is two percent, and this figure supports the notion that the Malaysian labour market can be characterised as imperfect competition. From both employers-employees’ prospective, it is obvious that both observable worker characteristics and unobserved firm-effects are key elements of pay determinants. Nevertheless, firm effects seem to explain the variability in pay determinants more than observable worker characteristics. In addition, the relationship between pay component and firm performance exhibits a positive tendency. This implies that workers get a higher pay either because of worker characteristics or that firm-effects are being employed in firms that are more productive and profitability.

Three main components represent the pillars of this research: Human Economic Security (HES), Islamic economics, and the Malaysian economy and policies addressing economic insecurities. HES is part of Human Security (HS), and both are presented in this research from the Islamic perspective to relate to both Islamic economics and Malaysia, the constitutionally Islamic country. To reach a conclusion regarding the subject, the researcher asks the question: "Can Malaysia actualize HES on the bases of equity and justice for all its citizens through enlarging and enhancing the performance of the Islamic Voluntary Economic Sector (IVES) institutions, specifically the redistributive institution of zakat?" The methodological approach of this research is basically a qualitative one. In the concluding chapter the researcher finds that Islamic economics could grow to become more social, more so through the growth of the IVES. However, a steady growth of the sector is not enough to actualize HES noticeably in Malaysian contexts. A more robust growth rate in the sector is conditional to decisive government interventions that favor the growth of the IVES. / 博士(グローバル社会研究) / Doctor of Philosophy in Global Society Studies / 同志社大学 / Doshisha University