PBK president cautions companies would struggle under new minimum wage

Voon Lee Shan

KUCHING (March 31): The government should make a careful study before implementing the minimum wage of RM1,500 from May 1 this year, said Parti Bumi Kenyalang president Voon Lee Shan.

While most people in the employment sector would no doubt be very happy with the implementation of this minimum wage policy, he cautioned the new minimum wage could have adverse effects as it could lead to bankruptcies and rising unemployment if companies could not sustain the rise in cost of operations.

“There is no reason politicians would not support this minimum wage increase at the moment because the 15th General Elections are around the corner now.

“Politicians who support this wage increase would find themselves popular among the voters and they would be assured of much support from the workers because most voters are working people earning wages.

“(But) there could also be rioting, perhaps looting and increase in crimes if things could not be under control if the policy leads to poor economy and unemployment like what in some foreign countries,” he added in a statement yesterday.

In Voon’s opinion, the increase in minimum wage would benefit foreign workers more as they are paid much lower than the locals.

With the increase of wages benefitting foreign workers, billions of ringgit earned by these foreign workers will be sent back to their countries of origin from Malaysia each year to help the economy of their countries.

“The locals who are already paid wages higher than RM1,500 and they will not find salary adjustment because entrepreneurs and employers may wish to control their operation cost and they will be demotivated to work and this can affect production.

“A decrease in production may find them an exit from employment. School leavers and fresh graduates may not easily get employment because entrepreneurs and employers may wish not to employ new workers in order to keep operation costs low,” he said.

Voon that the difference in wages between local workers and foreign workers should be based on certified skills.

With certified skills and higher wages, locals would be attracted to perform the re-branded dirty, dangerous and difficult (3D) jobs while skilled certifications for jobs should also be implemented be it for local or foreign workers.

“Any stigma that is perceived by society in relation to these jobs would be removed by the re-branding of jobs that must be supplemented with a clear career progression plan like done in developed countries such as in the UK and Japan, where locals take pride in performing such jobs,” he said.

Voon said these jobs should be re-branded to make them more attractive to locals, as for example, a rubbish collector should be rebranded as “hygiene attendant” and gardener be rebranded as “landscape artist”.

He also noted that jobs currently performed by foreign workers, which are generally shunned by locals are considered dirty, dangerous and difficult (3D jobs) because of the perception that they are demeaning and socially unacceptable.

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