In Malaysia, the increase in the minimum wage only benefits foreign workers

जागृति खबर संवाददाता

Kathmandu.

Economists and academics have reacted differently to the demand and recommendation to raise the minimum wage to RM 1,500.

Some advocated for immediate implementation after the delay, while others argued for further study, keeping in mind the status of employers.

Datuk Shamsuddin Bardan, executive director of the Malaysian Employers Federation (MEF), said the increase in the minimum wage would only benefit foreign workers at home.

According to him, foreign workers with attractive salaries can bring their money home and make the country’s economy run smoothly.

He said the notion that Malaysians would benefit from the minimum wage increase was incorrect, adding that most entry-level and lower-level workers, including foreign workers, were involved.

“We can look at studies conducted in 2018 on the impact of the minimum wage increase at that time. From that research, about 1.8 million people benefited from the minimum wage increase that year. At that time, there were about 2 million foreign workers in Malaysia.

“We think that the beneficiaries at that time were foreign workers, not Malaysians.

“These foreign workers repatriate RM3.4 billion every year. Imagine if money was used to develop our economy. It could boost our national economy, “he said in an interview conducted by the National Council of Professors (MPN) in Malaysia.

Uni Rajak’s economist Prof. Emeritus Dr. Barjoya Bardai said further study was needed before making any decision.

He said that it would be better to postpone the price hike as the productivity rate decreased by 5.5 percent last year due to various incidents including floods and Kovid-19 infection.

Postpone, don’t execute now, don’t rush. “It simply came to our notice then.

Meanwhile, Prof. Radak Che Rose, Chairman of MPN, who is also a panelist of the program, said that the issue should be looked at realistically.

Although some think the RM1,500 minimum wage is too high, many people should understand that the RM1,200 minimum wage announced in 2020 was still low.

I believe that the National Wage Advisory Council (MPGN) has taken the cause of the epidemic.

“There may not be an increase every year, but the cost of living needs to be adjusted once every two years,” he said.

He also urged the government to be more realistic in looking at the justification for raising the minimum wage for some sectors.