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Wages vs Productivity

ACCCIM's SMEs and human resources development chief Kong Ling Long said the minimum wage scheme would force Malaysian employers to be more reliant on foreign workforce. He told Sin Chew Daily the new scheme would only thin down SMEs' profitability at a time the economy was not in good shape, especially for the agriculture sector outside Klang Valley because they were not able to reduce labor cost by means of mechanization, and had to depend more on foreign workers.

He said the government should not force employers to increase the wages of workers just to achieve the high-income status, adding that wages had to correspond to productivity. He said the government should instead help employers improve their productivity.
The government believes Malaysians will be more willing to take up these labor-intensive low-pay jobs by merely increasing the wages, and then we will be able to reduce our dependence on foreign workers and become a high-income country.
Kung also said the government had repeatedly reneged on its promise to appoint a representative from ACCCIM to the National Wages Consultative Council, adding that ACCCIM had on more than one occasion visited the minister and submitted MoUs and proposals.

"The government has indeed consulted us, but seldom takes our proposals seriously."

Source: My SinChew

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