LETTER
The recent remarks by the EPF that higher wages should be considered for workers in Malaysia is a step in the right direction.
The EPF also warned that raising the payments to EPF is not the best way for the country to move forward; currently the contributions percentage is among the highest already in comparison to other countries.
Instead, there should be steps taken to ensure that workers in Malaysia continue to have wages raised in line with those aspirations of a developing nation towards developed nation status.
To raise the contributions of EPF is definitely the easiest way to ensure savings accumulations but will not contribute to the progress of the nation over time.
In fact, there is even the danger that investors will shy away for fear of an ever increasing EPF share by employers rendering the business environment unprofitable in long term.
Previously Malaysia wanted to keep wages low to attract investors but the nation has progressed beyond the low wage status already – today the country is a large exporter of oil, palm oil timber and other manufactured goods and can command relatively good prices due to the quality of these products.
As rightly pointed out by other NGOs like the MTUC (Malaysian Trades Union Congress), the usual excuse from employers to keep wages low is a gimmick to ensure higher profitability; majority of these big businesses employing large number of foreign workers enjoy huge profits but pay minimum wages.
There has to be reforms made to the existing way of doing business in Malaysia if we are not to be left behind by our emerging neighbors who are becoming competitive.
These reforms can only be constructively introduced through discussions between employers and unions in a win-win solution as demonstrated by the banks’ union as a good example.
For Malaysia to progress in the coming years, the government must take the following steps:
- Improve the local economy by lowering tolls and petrol prices,
- Do away with uncompetitive monopolies, and
- Encourage more downstream processing of our commodities.
All these are easily within the means of the government if it has the will and intention of the nation’s future in mind.
To compete directly with others in the IT field, Malaysia will ultimately fail as our present education system is not up to par with the others so we must excel in what we have currently and move on from there.
When our exporting economy picks up with added manufacturing, it will definitely result in higher wages and also greater automation which together will bring greater progress to our country in the future.
Malaysia certainly need to have a plan for the future or face a bleak winter when other nations ride the wave of success due to their better education system and policies favoring economic development in a competitive business environment.
PHILIP WONG,
Kuching
The views expressed are those of the author and do not necessarily reflect the official policy or position of the New Sarawak Tribune.
