No RM7.2 bil capital outflow, says Pua

Tony Pua says the Pakatan floor wage’s policy will only encourage employers to hire more local workers.

PETALING JAYA: The Pakatan Rakyat’s proposed floor wage policy of RM1100 would not cause a RM7.2 billion annual capital ouflow, it would only reduce reliance on foreign workers, said DAP National Publicity secretary Tony Pua.

Pua was responding to MCA Young Professionals bureau chief Chua Tee Yong’s statement yesterday that some 3 million foreign workers in Malaysia would benefit should Pakatan review minimum wage from the current RM900 to RM1100.

The extra RM200 pay rise would cost the market RM600 million a month and RM7.2 billion a year in capital outflow, Chua had said.

But Pua when contacted by FMT yesterday said “there won’t be RM7.2 billion because there will be less foreign workers.”

He explained that by providing equal minimum wage to local workers and foreign workers, employers would end up hiring more locals as there is no extra cost incurred.

“Foreign workers will no longer be cheap because they need accommodation, documents and licensing costs. Chua has got his economy wrong!” he said.

Meanwhile, DAP parliamentarian for Bukit Bendera Liew Chin Tong said the Pakatan’s minimum wage proposal include a wide-ranging reforms to assist businesses in technology and skill upgrading, reduce the number of foreign labour and abolish monopolies.

“(The RM200 paid rise) shouldn’t be taken out of context,” he told FMT in a text message yesterday.