KUALA LUMPUR, March 22 (Bernama) -- The minimum wage policy will have a relatively marginal effect on the economy in the long term, says Bank Negara Malaysia (BNM) assistant governor Dr Sukhdave Singh.
Source from (Bernama): http://www.bernama.com/bernama/v6/newsbusiness.php?id=654272
Published: March 23, 2012
Sukhdave said it would not only be good for the economy and ensure Malaysia achieve its high-income nation goal but would also increase labour productivity.
"If your competitiveness is based on providing wages that are very low thenthat’s the wrong economic structure.
"If our agenda is determined by the low value-added industries paying low wages, we will not achieve the objective of high-income nation goal," he said at the question-and-answer session at the Seminar on BNM Governor''s Address on The Malaysian Economy & Panel Discussion here today.
He said workers who get paid more would be able to enjoy a higher standard of living and thus would be more prouctive.
"Some people said it (minimum wage) might create unemployment but I believe the other side of picture. If you have the minimum wage, it may create more employment opportunities," he said.
Sukhdave said industries that essentially relied on cheap labour now had to move up to higher value chain and would create jobs which contribute directly to higher value-added economic activities. -- BERNAMA
No comments:
Post a Comment