Malaysia unaffected by Indonesia’s new labour law

Socio-Economic Research Centre (SERC) executive director Lee Heng Guie said Malaysia is much ahead of Indonesia in terms of ease of doing business, a key consideration for investors when making investment decisions.

PETALING JAYA: Indonesia’s drastic move to attract investments by amending 79 laws in a single stroke recently, which include abolishing sectoral minimum wage and easing labour regulations, has raised questions on whether it would render Malaysia less attractive in the eyes of foreign investors compared to its neighbour.

Malaysia is already facing stiff competition from low-wage labour countries in South-East Asia such as Vietnam, Myanmar and Cambodia. Hence, there are concerns that Indonesia’s controversial step to appeal to investors may further add to the competition.