Wednesday, September 1, 2010

Gaji Minima

"Minimum Wage:" it's a very important topic, which is yet to be really highlighted by our local media..most of the people, therefore, are less informed, and thus, do care less!

anyway, i found this issue to be very substantial in fixing our social problems as well as to drive our economy towards higher level..but, why? here are my logics:

'pros' of minimum wage:
  • we'd motivate our workers to work harder, and therefore, would increase their productivity
  • foreign workers would be less favorable since their wages are no less than our a result, we could reduce their numbers in our country (could reduce the issues, caused by illegal [legal] immigrants, such as burglary, robbery, etc)
  • purchasing power of our people would increase, as long as the gov can control the prices of goods & services..if the prices were to increase in the same rate as the wages, it won't do any good to our economy tho!
  • as the purchasing power is considerably high (indicator of low inflation rate) , we could then attract foreign investors to invest here..we, then, can generate new jobs for our locals..since the current economy is based on knowledge, we have to make sure our workers are equipped w/ substantially good knowledge and skills (from low-skilled to semi-skilled workers)
'cons' of minimum wage:
  • our locals are yet to be interested to work in certain sectors, such as plantation and construction..hence, most companies would prefer to employ foreigners..since these workers are paid w/ considerably high wages (as compared to the time before the implementation of min. wage), more of our money will outflow to foreign countries..these foreigners are not spending much in our country, which is not good for our economic sense..
  • if the skills and knowledge of our workers were yet to be improved, our country would then be less favorable for (foreign) investment..even, to make it worse, many of the companies, which already have bases here, would find other countries since the operation cost here would increase significantly..or else, the number of employees would be reduced, of which later would increase the unemployment rate in our country..high unemployment rate would then lead to high inflation (people tend to do savings rather than spending)..consequently, the purchasing power would degrade, and this will affect our local businesses also..
hence, i'd suggest this issue to be very well-discussed since its impact is larger than it might seem..we should stop discussing nonsense topics, such as "prayer for LGE," which i consider to be insignificant..unity can be achieved only and if only the wealth of a country is well distributed among the people, and therefore, the people could live economically happy..therefore, i really wish for many significant changes, in terms of economic policies, to be announced by our beloved Prime Minister, Najib, when he discloses our New Economic Model (NEM) in October!  anyway, i should applaud YB Khairy Jamaludin, whose approaches, to do the reform, are a bit different as compared to his predecessors..

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