PDA

View Full Version : Adjust to higher cost economy, Dr M



CS Chua
09-08-2008, 04:05 PM
This is one of the few areas I agree with the old man. It is time the government pursue a higher cost economy for Malaysians. The government must steadily increase wages every year. Graduates starting pay is only around RM1,800 per month compare to Australia's A$3,000 per month or USA US$3,000 - US$3,500 per month. In spite of these high wages, they remain competitive and have so many world class companies.

The government has consistently resist minimum wage and prefer to depend on foreigners for cheap labour. Even sales jobs are now given to foreigners. If minimum wage is raised to RM8 per hour for the service sectors, a lot more Malaysians (especially students on holidays) will want to do the job.

Therefore the government must increase the starting pay for all graduates, as the civil servants' salary is the benchmark for the private sectors'. It will be good if a graduate's starting pay is around RM3,000.00 per month. If raised gradually, inflation will be controlled.

chewie
11-08-2008, 10:41 AM
yes i agree with it... was looking at an ad for part time worker at 7-11 and i notice that the pay for a part timer is about rm3.50 per hour... thats really low..

CS Chua
11-08-2008, 02:03 PM
At least, it is in an air-conditioned environment. What if it is in a coffee shop? The pay does not commensurate with the labour.

For starters, the government should give minimum wage to certain sectors like services and security. These 2 sectors should not be given to foreigners. We receive lousy services and poor security in return.

rachel sj
11-08-2008, 02:25 PM
At least, it is in an air-conditioned environment. What if it is in a coffee shop? The pay does not commensurate with the labour.

For starters, the government should give minimum wage to certain sectors like services and security. These 2 sectors should not be given to foreigners. We receive lousy services and poor security in return.

Totally agreed...I realise that some clerical clerks are still being paid btw RM700 to 850 per month..just wonder how they survive esp for those who have young children/aging parents to care for...Govt should at least work out a minimum wage scales for different industries...

firefox
11-08-2008, 02:49 PM
22 years of DR M is more then enough, do we still need to listen what this old man has got to say. Who listens to him anyway?

pepsi
11-08-2008, 02:58 PM
22 years of DR M is more then enough, do we still need to listen what this old man has got to say. Who listens to him anyway?
I use to admire this guy, but now I don't but, I believe, he can still contribute (brains) to Malaysia.He is a smart man and he was the PM of Malaysia.
So let's not shut him out completely, but I say ignore him when he starts to "membebel" about race issues. I don't trust him with race matters.

USJ27Resident
11-08-2008, 03:44 PM
as long as the Govt allows for foreign labor to come into malaysia... the employers will exploit these people AND malaysians...

imagine the Govt shutting out these people... employers would have NO CHOICE but to employ locals with HIGHER salaries... [period!] If they don't, then they will not have employees.

Its a cycle... for employers/employees...

cypaq
11-08-2008, 05:43 PM
Here's my 2 non-inflation-adjusted sen worth of opinion. An increase in salary without corresponding increase in productivity will only result in inflation and a drop in exchange rates. There is no use in calling for increment when productivity doesn't increase. Goods and services just get more and more expensive due to inflation and you will still end up with nothing by the end of the day.

Before you can talk about increasing salary, there must be an increase in the GDP or else we will be like Zimbabwe. Thus I disagree on the setting of minimum wages that is much higher than the current average.

But I agree that we must wean ourselves from our over-dependance of foreign labour as they repatriate our wealth back to their own countries instead of injecting it in Malaysia's economy. We lose out on the multiplier effect of the money leaked out. This also applies to the money stashed away in Swiss bank accounts of corrupted politicians. :mad:

CS Chua
11-08-2008, 07:53 PM
I once read a German survey which showed that one German worker is equal to 8 foreign workers (nationality withhold.) That means, the productivity of one German worker is equivalent to 8 foreigners. That is an important factor as to whether a German company should relocate overseas or be based in their own country.

The question is, in a technical environment (electronics, assembly plants, mechanical engineering) how many foreign workers are equivalent to one Malaysian? Productivity certainly increases when you get competent and qualified worker.

The other issue to consider is the application of modern technology and machinery. As long as cheap labours abound, there are less incentives to invest in expensive machinery and technology.

Lastly, it also hinder the development of high value and high tech industries. We are always dependent on high labour, low tech industries. Singapore has long ago moved successfully into high tech industries. Why can't we? Are we Malaysians so stupid and technologically illiterate that we cannot handle high tech industries? India is doing very well. Uganda has re-invented itself into an electronic/computer-based economy. Surely, we have enough scientists, engineers, programmers, etc to re-invent ourselves.

geordie
11-08-2008, 08:16 PM
At least, it is in an air-conditioned environment. What if it is in a coffee shop? The pay does not commensurate with the labour.


We were at Sri Devi's for our roti canai breakkie some time last month. When we went to pay our bill, the Boss was in the midst of preparing the wages of his staff (whom I suspect are predominantly Indian nationals). Saw their pay-slip. M$700 a month. I reckon they must be on a 12-hour shift.

HAN2
11-08-2008, 09:42 PM
Here's my 2 non-inflation-adjusted sen worth of opinion. An increase in salary without corresponding increase in productivity will only result in inflation and a drop in exchange rates. There is no use in calling for increment when productivity doesn't increase. Goods and services just get more and more expensive due to inflation and you will still end up with nothing by the end of the day.

Before you can talk about increasing salary, there must be an increase in the GDP or else we will be like Zimbabwe. Thus I disagree on the setting of minimum wages that is much higher than the current average.

But I agree that we must wean ourselves from our over-dependance of foreign labour as they repatriate our wealth back to their own countries instead of injecting it in Malaysia's economy. We lose out on the multiplier effect of the money leaked out. This also applies to the money stashed away in Swiss bank accounts of corrupted politicians. :mad:

I fully agree with your point here, Cypaq. I think agreeing to a minimum wage policy or raising the salaries of graduates and what have you does not provide the answer. In fact might lead to a disaster if there is no equivalent increase in productivity rate. Inflation will be the answer if this happens.

Let us understand what the Old Man was saying - he mentioned "high cost economy" not high salaries etc.

Rather than going around the world competing with countries like Vietnam, China, Thailand and Indonesia and what have you for those "old" economic investments like manufacturing or assembly lines etc, lets for for the high cost economic activities.

We need not look far, just take a good look at Singapore. Look at the aeronautical, oil-rig constructions, look at the bio-tech investors they are attracting to their Biopolis Park....

And here we are still focusing on attracting assembly lines and the likes. We should go for the high-value top-end industries. We were a leader in this in the 70s when we were the first to have microchip factories but something went wrong along the way...

I am not a fan of the Old Man but in this case, I just have to agree to his opinion.

HAN2
11-08-2008, 09:46 PM
22 years of DR M is more then enough, do we still need to listen what this old man has got to say. Who listens to him anyway?
I am not a fan of his in politics but I still do when he speaks on economic matters. I understand he is still having Keniichi Ohmae as his adviser (paid for by Petronas, I presume)...

praetor
11-08-2008, 11:22 PM
Greetings.

It cannot be denied that the starting pay of our graduates is ridiculously low but at the same time what about the quality of the graduates? Some can barely carry a conversation in English which their occupation requires and some seem to be confused about their own training before. As a result, employers do not give a better financial remuneration because the quality is just not there. However, on the same note, if the employers continue to pay peanuts then they too will get substandard monkeys to get the job done. At least get a well trained monkey to get the job done.

Before we start saying too much on the foreigners taking our jobs, let us be honest with one thing: do you really think our kids can wait on our tables with proper etiquette and patience even with a better pay? Our nation has developed to such a point that they can't clean after themselves(no offence to the youths who are well taught and disciplined) because we have spoilt and pampered them to an extent that is unwholesome. To break out of this cycle, parents do tell them off and make them do the right thing. I'm in no position to tell anyone what is right or wrong but step into major shopping malls such as Times Square and do you see those youths bussing your table?

Skilled personnel we do have but many have left for greener pastures such as China, Singapore and the list goes on. It is not because someone forced them there but because Malaysia simply do not have the space for them to grow. The government is still trying its hardest to face off Thailand, Vietnam in the manufacturing sector and it's an open secret that we are losing badly in that front. Make no mistake, the manufacturing industry provides many jobs but as time has passed, we should consolidate into industries that are of higher value but yet no aggressive and proactive steps have been undertaken. Until that happens we are merely a primary or secondary industry country that has yet to mature beyond that.

Brain drain is the cry of the government. If they would begin with making a concrete effort to start off higher research and better funding for the tertiary industry perhaps, just may be, there might be hope for us.

Pax vorbiscum.

fabregas
11-08-2008, 11:41 PM
I think everybody has a role in moving this country to the next level. Just look at how China has overtaken us. They are now the factory of the world. They can produce anything (or dare I say copy anything) under the sun, from simple things to high tech test equipments. They are now buidling a bridge for us. Just check out Alibaba.com and see the stuff they produce. Their engineers and technical prowess is impressive. Apart from the usual blame game on govt policies, I think the mentality of malaysians also bears some responsibility. I think malaysians are mostly interested in trading and sales. Quite a lot of talented engineers in my company have the choice of joining R&D or Marketing, but most want to join Marketing, as they think there is a certain glamour attached to it. I am not saying Marketing/Sales are useless, but you also need innovative design engineers to produce good products.