Wednesday, 2 May 2012

Minimum Wage RM900

Ok some of the patriots may think that yeah this is important people will earn more, standard of living will increase etc shallow depth of kopitiam policy thinking. 

The problem is 48% of Malaysia's GDP comes from the manufacturing industry. Malaysia, geographically is located to close proximity to China, Vietnam and India. We have access to cheap labour (from Indonesia and Bangladesh), but we face-palmed ourself now by making it a rule to pay them RM900 to work in Malaysia.

Yes, we increased our median income and perhaps abolished poverty to some extent in the short run. With the ultimate trade-off of "competitiveness". This one word, is something Malaysians never learnt about. We want great living standards without working that hard. We want subsidies. We want high wages. We think by investing in unit trusts or shares we are going to get rich quick. I call this stupidity and utter non-sense by all means. 

At RM900 for minimum cost of hiring an operator in a factory, what makes you think that those factories will not move out to Vietnam or China? My bet is they will do that and thousands will lost their jobs, including engineers, executives and then service sectors such as accountants, auditors, sub-contractors, design firms will be affected too. 

And Standard's and Poor's are going to downgrade the credit ratings of A- if Jibdog continue the funny policies. You know what that mean ? Nobody is going to buy Malaysian bonds, depreciation value of Ringgit Malaysia, increased cost of living due to depreciation of value and I'm sad to say those earning Ringgit may find it hard... real hard to enjoy a honeymoon trip to Europe, Japan etc. Consider Bangkok and Bali perhaps, cheaper.

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