GDP >>>

Either Malaysia stops the import of foreign workers or stuck in the middle-income trap forever

Fong was a Human Resources Minister, what he did in the past? He allowed local companies to import unlimited foreign workers, and now he only realized that his own mistake, but it’s too late.

Malaysia has lost 20 golden year to break away from the middle-income trap.

The next immediate right thing to do is stop all manufacturing and services sectors from hiring foreign workers.

More procrastination, Malaysia competitiveness will move further down to drain.

‘Drastic’ action needed on wages, says Chan Onn

By Lee Wei Lian

Fong pointed to Singapore’s success in beating the middle-income trap. — File pic

PETALING JAYA, Sept 23 — Tan Sri Fong Chan Onn said today that “drastic” action was needed to free Malaysia from the middle-income trap in which it is now trapped.

The former human resource minister pointed to how Singapore was stuck in a similar quandary in the 1980s, but later managed to escape it by mandating wage increases.

“(Singapore’s then prime minister) Goh Chok Tong forced companies to increase salaries by 50 per cent and within two years Singapore transformed,” he said at the National Conference on Making High Income Nation a Reality.

“People were forced to upgrade. That’s why we’re pushing for minimum wage over the objections of the Malaysian Employer’s Federation.”

The chairman of MCA think-tank Insap also cited the example of a solar power manufacturing company that lured Malaysians back from Singapore by paying competitive wages of RM10,000 to engineers and RM3,000 to operators.

“It is a function of wages,” said Chan.

He added that companies should invest more into research and development, especially productivity research.

“If (palm oil companies) are earning billions, why can’t they invest money to research harvesting technology and worker training?” he said.

Malaysia is currently suffering from low productivity and a brain drain driven partly by more competitive wages in destination countries.

The government is looking to introduce a national minimum wage by the end of the year.

The Malaysian Employers Federation has raised, however, concerns over the prospect of minimum wage by saying that salaries should be linked to productivity.

The comment board with Facebook account.
Ali Setan says:

The U.S. Department of State said that Malaysia’s “complex network of preferences” to promote the acquisition of economic assets by ethnic Malays and other indigenous groups is a “significant impediment” to economic growth.

“It clearly slows things as many competent people leave Malaysia because of it,” said Jim Rogers, the chairman of Rogers Holdings who moved to neighboring Singapore from New York in 2007. Malaysia should “abolish the policy and open the economy and society to all” to boost its competitiveness among international investors, he said.

Ray says:

Jalan Petaling is now operated by Bangla.

Very soon your town too.

nkkhoo says:

The invasion is not just in my town, Banglas also fill up the jobs in the estates used to be monopolized by Indians.

A number of Indians from Gutherie estate moved to my new village after losing their jobs to foreign workers.

This is how UMNO pushes some poor Indian youths to crime.

Yinson says:

The Immigration Department and NRD show a shocking bias in giving easy citizenship to unskilled labourers from Indonesia, southern Philippines and Bangladesh but real Malaysian citizens who have some irregularities in their documentation are denied citizenship no matter how many decades they have waited.

Sandra says:

MIC has failed to address the issue of Indians turning to gangsterism in the cities/towns after being driven out of estates jobs by the Banglas & Indons.

Sadly most of the successful local Indian tycoons and entrpreneurs chose not to assist their own commnunity as the concept of caste is deeply ingrained in their dna.

Awan says:

No serious effort by BN to curb PATI!!!