Although the minimum wage law is scheduled to take effect in January 2013, the Barisan Nasional government does not seem to be particularly committed to re-imagine the Malaysian economy through wage policy reform. Efforts to smoothen the transition for small and middle industries are seriously lacking too.
Minimum wage is meant to tackle several long-standing structural issues of the economy at once. As the United States and Europe struggle to stay afloat economically, Asia can no longer remain as an exporter, we need to grow our domestic/Asian markets; a higher income among locals will help generate a more vibrant domestic market which in turn will generate more jobs.
Also, with minimum wage, companies and industries will likely to rely less on cheap labour but invest in longer term potentials, capabilities and hence productivity of the workforce.
This is a virtuous cycle that will check dependence on unskilled foreign workers and brain drain at once. Skilled citizens who work in foreign countries are likely to consider resettling back to their homeland if the wage difference between their home and host countries is narrowed…
Choosen excerpts by Job Market Monitor from
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Posted by Jefferson | April 27, 2013, 3:54 pm