PETALING JAYA: The government should help industries up their game with new technology and increase production before pushing to implement the RM1,500 minimum wage, says economist Prof Dr Barjoyai Bardai.
He said the approach taken by the government was shortsighted and did not really benefit the people and country.
“Most of the micro, small and medium enterprises (MSMEs), are paying RM1,200 and they have said before that their profit margin cannot cover the new wage because their productivity is low.
“What will happen then is that they will transfer the additional cost to the users by increasing the price of goods, in worst situation the employers might have to take cost-cutting measures, they might terminate their employees or hire fewer workers.
“So as a whole there is no benefit for us to do this, we are disrupting the market because we are not ready yet,” he said.
He said the government should provide infrastructure to help businesses improve their productivity which in return would boost their profits.
Barjoyai added the reason why the 3D jobs (dirty, dangerous and demeaning) still exists was because employers didn’t invest in technology.
Citing the construction field as an example, he said the use of 3D printers could cut cost and time.
Meanwhile, economist Datuk Jalilah Baba is more positive about the implementation, stating that it will help people cope with the rising cost of living.
“Companies which can afford to pay more should pay more but never pay less.
“The wage is to ensure Malaysians have a secure life.
“Perhaps after a certain period, the government can carry out studies on the effect of this on the rising cost of living to see whether it shoots up or not.
“The minimum wage serves as a guide for businesses but at the same time, it doesn’t mean people should be splurging their money. What is done is for the benefit of the people and their livelihood,” he said.
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