Higher minimum wages and the lure of foreign money

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Thousands of young Malaysians work in Singapore

SHAH ALAM: Low minimum wages in the country has driven some Malaysians to look for greener pastures in foreign countries where the salaries are way higher.

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According to a study carried out by a local private university, large number of school leavers work in neighbouring countries where the education system is almost similar and with English widely accepted, a lot of our graduates are offered jobs.

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They work in skilled information technology sectors, boosting the country's performance in the sector.

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Firms employing them have managed to retain staff due to higher wages and the move has benefitted bosses as they remain competitive in the long run.

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Due to that, a higher minimum wage grade may benefit Malaysia and the community at large to boost productivity with proper trainings and quality control. This will indirectly benefit the company as their profits surge.

A proper welfare system will create loyalty for the company and motivate staff to perform better. Motivated staff will help increase the company's productivity.

This is backed by analysts who say a reasonable minimum wage will reduce poverty, create a balanced society as workers live in a comfortable environment with a proper nutritional diet for the family.

Meor Shahrom is Sinar Harian Head of Business Desk.