Minimum Wage In Malaysia

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Introduction From the article that I have found, it is talking about the impact of minimum wage in Malaysia. This article suit the factor of shifting in demand and supply. Shifting of the supply and demand curve is the relationship between the hourly wage rate in RM and quantity of unskilled labor hour in market. During January 2013, Prime Minister Datuk Seri Najib Tun Razak has announced that the government will implement minimum wage on private sector, which was also mentioned in budget. Despite of opposition supporting RM 1100 or employees’ demand for RM 1200-RM 1500, the settled amount of minimum wage is RM 900 per month or RM 4.33 per hour for employees in the peninsula while RM 800 per month or RM 3.85 per hour is for workers in Sarawak,…show more content…
Since the new policy of minimum wage had been set up by the Prime Minister Datuk Seri Najib Tun Razak, there are a lot of impact occurs. This is due to the fact that Malaysia’s Prime Minister, Datuk Seri Najib Tun Razak wants to drive our country towards a high-income nation. In my opinion, this action taken by the government will cause a roller coaster effect to the workers in Malaysia where some people will be shocked whereas the rest of the people will be not happy with this. Although most workers in Malaysia are pleased with the idea of having a higher standard of living, but there are some pros and cons that these workers might have to deal with because of the enforcement of the minimum wage. Below is a supply demand curve between the hourly wage rate in RM and quantity of unskilled labor hour in market before minimum…show more content…
This move cause the employer have greater purchasing power, they can have better quality of life and this indirectly decreased the rate of crime happen. Less poverty in our country. Economy moves to higher-income. The policy is consistent with the government's objective of transforming Malaysia into a high-income and high-productivity economy. The minimum wage policy provides incentives to both firms and workers to undertake productivity-enhancing measures. In my opinion, the benefit includes higher contributions to the Employees Provident Fund (EPF) as the leftovers will go some way to shore up the retirement savings of many Malaysians. Therefore, companies will see an increase in their payments to the EPF. The issue of the over-presence of foreign unskilled workers by attracting more Malaysians to enter the labor market can also be addressed by introducing a minimum wage policy. This is determinants in some sectors such as plantation, agriculture, construction and services. As Malaysia determined to become a high-income nation, it is very important for wages to be increased. Furthermore, I believe that the minimum wage increase will benefit firms and employers in terms of reducing the turnover rate of workers and

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