Minimum Wage Policy

March 7, 2012 by staff 

Minimum Wage Policy, Many well-meaning policy changes take forever to be implemented, reminding all of us once again that the task of governance is by no means easy.

The minimum wage policy is the most recent example. Although the Government has stressed that this is already a done deal, with only minor details to be looked into before it is officially announced, the crescendo of voices against it has grown louder by the day.

But amidst the cacophony of noise, let’s look at the facts. The Government is looking at a minimum wage of between RM800 (S$335) and RM1,000 for some 3.2 million workers in the private sector. Close to 33 per cent of these workers are said to be earning less than RM700 a month, which is below the income poverty line of RM763.

Those who live in the Klang Valley, where even a RM3,000 salary is considered barely sufficient to make ends meet, will be surprised to know there are workers in their midst who earn that little.

The Malaysian Employers Federation (MEF) says some 200,000 small businesses may face closure if a blanket minimum wage is implemented, and that up to four million jobs could be at risk. Some naysayers even go further and say our whole economy could collapse if such a policy is implemented.

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