Saturday, May 1, 2010

Reiterates call for minimum wage

Message by MCA President Datuk Seri Chua Soi Lek in conjunction with Labour Day

This Labour Day, MCA pays tribute to all workers who in one way or another have contributed towards the nation’s economic growth.

At the same time, we reiterate our call for the establishment of a Minimum Wage Council which would look into gradual implementation of minimum wages according to industries. Minimum wages will ensure that all Malaysians will enjoy a decent standard of living, thus enabling Malaysians to budget steadily and regularly for the family’s monthly expenditure.

Implementation of a minimum wage policy revolves around its effect on employment, productivity, inflation and the country’s competitiveness. It will galvanise changes in the economic model.

The concerns that deployment of minimum wage would make Malaysia a more costly place to do business thereby resulting in a drop in foreign investment is only valid if a blanket country-wide minimum wage is enforced irrespective of sector. However, this concern can be overcome if minimum wage is introduced in high growth sector especially those heavily dependent on foreign workers. This should be accompanied by the government providing incentive like grants or loans to encourage industries to invest, to embark on capital expenditure and training to increase productivity.

Minimum wage should not only be viewed as being aimed at improving the standard of living of workers but also as the driver of productivity and innovation. With a reasonable income, productivity will increase as workers will have a better attitude towards work as their income enables them to sustain their living. A change in attitude by the workers coupled with training and technological investment, will help Malaysia gradually wean off its addiction to cheap and low skilled foreign labour to drive its economy.

To cite an example, the oil palm industry faces shortage of workers which results in employers relying on foreign labour. However, if more research and development are intensified to come out with efficient mechanical harvesters for the industry, this will ensure higher outputs and reduction of foreign labour.Some trial results have shown that with mechanization using the motorized harvesting pole, the workforce for harvesting could be reduced by half, land-to-labour ratio could be doubled, productivity tripled and the harvesting cost cut by 75%. However there is reluctance in heavily investing in R&D to improve and make the machine afforadable as it will be easier to engage foreign workers.

The unemployment rate of Malaysians will be lowered as minimum wage will attract the locals to participate in the labour market and with the reduction of foreign workers it will help reduce the financial remittance overseas by foreign workers that has increased to RM18 billion.

While the private sector may see diminished profits initially when minimum wage is implemented, through innovation and higher productivity, there will be more returns in the long run. It is MCA’s hope that the government will seriously look into setting up a Minimum Wage Council for the progress of the nation and its people.

Datuk Seri Dr Chua Soi Lek
MCA President

-MCA online-

16 comments:

ong said...

Parts of your message are self-contradictory. If according to you the purpose of a minimum wage is to "ensure that all Malaysians will enjoy a decent standard of living", then having different "minimum wages according to industries" becomes illogical. To fulfill the objective of "a decent standard of living" for all Malaysians there should be one standard minimum wage for all.

When you suggested different "minimum wages according to industries", I hope you are not suggesting that some Malaysians should live like humans, some like dogs and cats and others like insects?

GoD said...

Datuk Seri. Please mention No GST. You seemed to have forgotten this. You must be seen a labour friendly.

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馨儀 said...

Thx ur share........................................

Pearls said...

I can tell we can all sit tight tight and wait... until all your hair turn white, teeth fall out, skin hanging till it reach the floor...

It will never happen here because we got 1 selfish government whose interest is only to protect big employers!!

trevortan said...

小弟的部落格(MAN IN BLUE)已换去以下网址,敬希能继续支持,感激!
www.trevortanlh.blogspot.com

Chin MW said...

Dear YB

Please have a look at your Pemuda MCA Klang, their quality is really disappointed. So many people wrote messages against myself alone also lost their battle.

FYI, I'm MCA member and not even any member of Pakatan coalition parties.

I love MCA, thus I alerted the MCA to wake up.

1) http://www.facebook.com/?ref=home#!/photo.php?pid=31332985&id=1166311439
2) http://www.facebook.com/?ref=home#!/photo.php?pid=31332994&id=1166311439
3) http://www.facebook.com/photo.php?pid=183563&id=100000368397685

Hope you don't delete this. Thanks

Anonymous Says said...

If you set a minimum wage, then the other categories will have to follow suit. Example. The minimum wage is RM 1000. Previously, the worker was paid only RM 500. There is a difference of RM 500. This difference has to be given to all the other ranks and files because only then, can the difference be seen between just an ordinary worker and a professional worker or between one who is more qualified and one who is less or some other criteria that is used for comparison. Malaysia has not yet come to a stage whereby she has that freedom of financial flexibility.

雅婷雅婷宛佳 said...

「不可能」這個字詞,在聰明人的字典中是找不到的。 ..................................................

Goministry said...

Chua Soi Lek,

I felt excited for a moment when you said that MCA dare to quit BN. Why not? When PR were to win over the Central Government, MCA can still be in the Government and representing Chinese rights. Even Anwar is not the next PM, so what? Zaid is better than Najib. Even PAS's Nizar is also better than Najib. UMNO is beyond redemption. What says you?

登山 said...

Just do it!.......................................................

chin said...

1 Malaysia, Rakyat didahulukan

Subsidy cuts vital to avoid bankruptcy!

MCA should tell UMNO led BN, if they do not tighten their belts on Affirmative Actions and unnecessary Public Projects Wastages, if these unpopular move is not carried out, Malaysia will soon become bankrupt!

Learn fromn the Nation that has successfully implemented GST and the living standard still low. No need to travel that far, do not make the poor become poorer.

What is minimum wages vs subsidy cuts before you cut on all the other Public spending wastages.

Alam/ Rasah Kemayan

OFFICE FURNITURE said...

Dr Chua
How about extending retirement age to 60 for all malaysians. Most cannot to afford to retire at 55 due to financial limitations

Suci Dalam Debu said...

Sir,

Why have you remained silent for a month now?

Too busy?

Are you just another hangat-hangat tahi ayam type?

l藍海 said...
This comment has been removed by the author.
于呈均名 said...

格主的部落格內容真豐富~~看得很開心 ....................................................

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