12 Mar '12, 11pm

Malaysia set minimum wage

Malaysia has decided to set a minimum wage of M800 to M900 per month, depending on location http://www.todayonline.com/World/EDC120313-0000053/KL-sets-minimum-wage-between-RM800-RM900 Two weeks ago, there was a report in the newspaper that employees had complained that a minimum wage will cause 90% of the workers in small companies to lose their jobs, as the profit margin of these companies cannot sustain the minimum wage. The employers overlook an important fact. The minimum wage will apply to all businesses. Their competitors will also have to bear the higher cost. The higher cost has to be passed to consumers through higher prices. And the lower income earners can afford the higher prices, as they earn higher wages, due to the minimum wage. An important outcome is that the rental component that is embedded in the prices will become relatively smaller, compared to wages....

Full article: http://tankinlian.blogspot.com/2012/03/malaysia-set-minim...

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