Senator S. Ramakrishnan, 3/5/2012

The much delayed minimum wages was finally announced by PM the main stream media still hotly debating the consequences of Bersih 3.0.  Minimum wages for workers in Peninsular Malaysia has been set at RM900 a month while for Sarawak, Sabah and Labuan is RM800 per month. The minimum wage would cover workers in all sectors of the economy, except for the domestic help service or maid, gardener and similar employment categories. The minimum wage will take effect six months from the date the minimum wage order is gazette. Seem to be a half hearted plan that may not take off. Selangor state implemented minimum wage of RM1500 for state and state GLC employees while Penang government RM1100.

The announcement comes as another sweetener for workers before the 13th general election. It’s an election goody and a knee jerk reaction in response to the workers protest on 3rd November 2011 against the amendment to employment act 1955. The PM wants to win over workers to support BN in the coming general election. The debate on the acceptable level of minimum wages will go on for some time to come. 

PM implemented the 10th Malaysia plan in 2009 to become a high income nation by 2020.  It took 3 years to announce a minimum wages plan. A minimum wage of RM900 will only attract more foreign workers. Malaysian workers cannot survive on such a wages. Foreign workers will displace the unskilled Malaysian workers in low paying jobs keeping Malaysian workers earning below poverty level. Wages alone is no longer a major determinant of competitiveness but in Malaysia it is deliberately kept low through large and unfettered recruitment of foreign workers by employers and crony agents through very exploitative production system. Foreign workers are already 40% of work force.

Workers rights eroded over the years under the BN regime. Labour laws have been amended to allow sub contractors to employ workers for hire in factories and officers. Forming in house unions have become impossible. Existing unions are weakened systematically and lowering job security. The close relationship between government and employers have breed in corruption, kick backs and big lucrative deals for UMNO goons. The civil service policy makers and implementers are clueless on stimulating and reinvigorating the stagnating productivity and efficiency of public sectors. This is stifling the private sector growth and expansion. Institutionalized racism and corruption have hampered and blunted the drive for increased productivity and efficiency. Workers can be made more productive and efficient with equality and meritocracy. 

Millions of skilled and highly educated Malaysians go overseas seeking job opportunities. Our lost is other countries gain. UMNO/BN must dismantle the racial quotas and discrimination to increase efficiency and productivity. Structural transformation is compulsory and prelude for socio economic and political changes. Malaysia truly Asia should the pervading spirit in nation building and not just a tourism sloganeering.