Populist Policies That Are Killing Off Business

Malaysian workers are becoming poorer, especially the Malays, because of the gomen's supposedly populist policies which achieve nothing other than increase the cost of doing business and eventually burden the consumers and deprive the workers of better opportunities. 

Let me explain.

In order to win votes, the gomen has made laws and regulations which on the surface appear to benefit the workers. But all this is done at the expense of the employers aka the Malaysian economy.

The gomen itself has nothing to lose.  In other words the gomen is "giving away" other peoples' money.

For example they suggested that the paid maternity leave for women should be 90 days. I dont know if this "90 day maternity" has been implemented (there was some resistance) but the idea certainly imposes a much higher financial burden on the employers.  The employers must suffer higher costs. The employers must pay extra money. The gomen does not have to pay anything at all. 

The gomen appears more popular.  But what really happens is that for certain the employers will be less keen to employ married women. More women will become unemployable.

Then the gomen imposed the minimum wages policy. Minimum wage is now RM1,000. But the gomen does not check all the SMEs for compliance because for sure all the kicap factories and keropok lekor factories cannot afford to pay minimum wages of RM1000.  So the gomen closes one eye.

For certain the minimum wages has increased the unemployment of youths. Economically speaking few or no school leavers (SPM cangkul, gred tiga SPM etc) can generate economic returns in excess of RM1000 say in Mambang Di Awan in Perak.  

Can an older person who is a  rubber small holder with say FOUR acres employ anyone for RM1000  a month to tap rubber in his small holding? Not possible. 

Two things will happen. First the rubber will not be tapped.  The old timer is too old to tap rubber.

Secondly one less young rubber tapper will become unemployed. Because the small holders in his area cannot afford to pay the minimum wages of RM1000 anymore. 

These are the populist policies that the gomen thinks up to gain popularity among the voters.

But for every such populist policy there is a higher cost burden in the economy. 

Someone else has to bear the higher cost burden. 

That someone is the Malaysian employers and the businesses. 

Also known as the Malaysian economy.

When the cost of doing business goes up, eventually the workers will suffer because unemployment will increase.

If businesses close down the workers will lose their jobs.

The gomen even declared unscheduled public holidays.

One time they changed a gazetted public holiday.

Again these are just stupid and unthinking populist measures to win popularity and win votes.

But all these populist policies have an economic cost.

Factories would have postponed deliveries because of the gazetted public holiday. Then the gomen changed the date of the public holiday.

Factories would have scheduled production, deliveries, hospitals made appointments with patients for surgeries, businessmen would have made bookings for hotels and ticket reservations - all these had to be cancelled and / or rescheduled.

When the gomen declared an unexpected public holiday all if not most hospital attendants, nurses, technicians etc at gomen hospitals also went on holiday.  Doctors had to reschedule surgeries or conduct urgent surgeries with minimum number of surgical assistants.   

As I said, when the gomen does stupid things just to be popular there is a higher cost burden somewhere that has to be paid. The Malaysian economy suffers the higher cost. The Malaysian economy means the people suffer this higher cost.

Wa akhirul kalam : I dont think the dunggus will understand any of this.