Workers here paid 4-7 times less than Singapore, Japan

MTUC Sarawak says wages in Malaysia has remained stagnant and below productivity levels.

KUCHING: Those who argue against any increase in the minimum wage on the grounds that employers are in non-compliance are in effect saying that “the sentence for rape should not be increased since there are too many rapists”.

That’s the analogy drawn by MTUC Sarawak Secretary Andrew Lo in commenting on the opposition expressed by the Malaysian Employers’ Federation (MEF) on any increase in the minimum wage.

He was also commenting on remarks attributed to several Ministers on the issue, among others. Minister in the Prime Minister’s Department Wahid Omar who called for wages to be “priced properly”. International Trade and Industry Minister Mustapa Mohamad and Pemandu CEO Idris Jala echoed his remarks.

“Wages in Malaysia have remained stagnant and below the productivity levels as confirmed by the World Bank,” said Lo. “There have been complaints that Singapore’s productivity is four times that in Malaysia, while Japan was seven times more.”

What has been left out, added Lo, was that wages in Malaysia are four to seven times lower than that in Singapore and Japan.

The real reason why productivity is lower in Malaysia compared with Japan, US, Singapore, South Korea and Taiwan, continued Lo, is that the government has allowed employers to suppress wages by stifling trade unions and bringing in foreign labour. “There’s no incentive for employers to invest in technology and productivity enhancement methods to increase production.”

“We are trapped in a low wage situation with six million foreign workers who equal the Malaysian labour force.”

Citing Sarawak as an example, he claimed that half a million workers were living below the poverty line which is still higher than the minimum wage of RM800 per month in Sabah, Sarawak and Labuan.