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NGO Says Set Minimum Wage At RM900

Recently I had a chat with a friend who came from Semenanjung. A nice chap and was on Sabah for a business meeting with another friend of mine. We had an interesting conversation at a very nice restaurant at KK Times Square. I’m obviously impressed with his knowledge and experience on many matters, including business and I must say that it was a great pleasure having that conversation with him. Thank you bro, I hope to see you again sometime. :D

We moved from one topic to another. Gomen contract to laws to software systems that his company are supplying to gomen, etc. We touched on current political scenario and of course the coming election. Well, that will remain our private conversation and nothing will be written or rather typed here. :wink:

One topic that we touched that night was on the implementation of Minimum Wage in Malaysia. He obviously supports the Act and eager to see the enforcement of such law.

He strongly believe that the Act will not only raise the standard of living of Malaysians, but will also stop the influx of foreigners in the country. Another important thing that he raised that night was that, he believes, by enforcing the Act, many of the illegal businesses or selfish employers will have to “gulung tikar“, thus leaving the market for genuine business people only. I had my counter argument (as always), but I’m leaving to you guys to give your opinions on this matter.

By the way, here’s a newspaper report relating to the title of this post. :D

PETALING JAYA (Sept 17, 2012): The RM900 minimum wage set by the government for Peninsular Malaysia should also be set for Sabah and Sarawak, said non-governmental organisation (NGO) Oppressed People Network (Jerit). “What is the rationale of providing a minimum wage below the poverty line in east Malaysia? The cost of living in east Malaysia is 30-40% higher than in Peninsular Malaysia,” said Jerit. The NGO also called for wealth redistribution to reduce the income disparity in Sabah and Sarawak, noting that they are rich with natural resources.

- Read more at The SunDaily

- NGO Says Set Minimum Wage At RM900

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  • Some will gain and some will not. That’s how it is with the business trends. and for Malaysia, quite sad and depressing. People will always find ways to manipulate situations and not looking forward.

    For instance, this scenario, minimum wage should be best for workers, but at least to par with current standard of living in Malaysia. On the downside, business owners will find more ways to squeeze every little bit of breath from their workers.

    So, all and all, when these “people” tries to improvise on certain issues, they should re-evaluate as a whole, not just tackling one certain issue – eg minimum wage for workers only. Until then, we will just be as we were before. Not moving forward and sometimes taking one step back.

    P/s: about the “gulung tikar” thing – business men should always be creative. It does not mean, higher cost lower revenue (especially small business enterprise owners – dealing with gov. contracts or whatever). This is the time to re-structure and strategically find more opportunities. Rather than being comfortable with the current business stakes – move forward.

    • Actually when I talked about the “gulung tikar” thingy, I’m actually referring to the SMEs that have little or zero chance of maneuvering when the Minimum Wage Order comes to force. For example, those small restaurants with plenty of workers required but have low turnover due to highly competition among them. We think some of these small businesses will close down thus leaving on only a handful left and the markets/economy will then make some adjustments. Hopefully, these adjustment will also means that employers will start reducing their dependencies on foreign workers and at the same time more Malaysians will be willing to take up jobs left by these foreigners since the pay are significantly better. After all, many Malaysians are not ashamed to clean up toilets at foreign lands as long as they receive a good salary.

      • economic really need important ingredient..that is time..for time comes it will result in differently according situation and environment..however i agree with minimum wages that will definitely increase ‘taraf hidup’ but at certain point need backup to counter the salary such as attract many high tech industry to move in to malaysia..

  • Doing business well.. Gd luck brother and all d best

  • Ipar saya berkerja disebuah syarikat elektronik tersohor terkena kesan gaji minimum. Kalau dahulu gaji pokok dan kerja lebih masa boleh capai 1k++ tetapi apabila gaji minimum dilaksanakan tiada lagi kerja lebih masa dan pengambilan perkerja asing bertambah.

  • tidak dapat tidak kita perlukan standard itu.. tidaklah sampai terpinggir di negara sendiri.. hehhee