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15 Mar '12, 4am

Malaysia implements minimum wage.... #sgpolitics

In a move that is considered both bold and risky, Malaysia has decided to go ahead and implement minimum wage. I've explained in detail in earlier postings why it will be difficult for Singapore to implement minimum wages. For countries that have kept income inequality low and the cost of living relative to wages low, implementing minimum wage is a non-issue and will help people at the margin. However, in Singapore, 2 whole decades of neglect and bad policies by the PAP govt has resulted in a large income gap, dependence on cheap labor and a cost of living that is very high relative to wages of the lower income group. A meaningful minimum wage will affect business that have become dependent on cheap labor. The PAP govt decided to implement a soft option - workfare. Workfare is highly disadvantageous because it traps workers in menial low paying jobs and does not incentivis...

Full article: http://singaporemind.blogspot.com/2012/03/malaysia-implem...

Tweets

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