Wednesday, November 30, 2022

Malaysian bosses are the stingiest in SEA, most not willing to pay more to their employees

NewsMalaysian bosses are the stingiest in SEA, most not willing to pay...

When it comes to paying their employees, Malaysian bosses are considered to be the stingiest in Southeast Asia. Don’t be surprise as there’s a study conducted on this!

The Malaysia Trades Union Congress (MTUC) President, Datuk Abdul Halim Mansor shared such an insight with Utusan Malaysia, saying how Malaysian employers only spend 25% of their Gross Domestic Product (GDP) on wages.

When compared the other neighbouring countries such as Singapore that spends on average 40% of GDP on wages, Indonesia (84%) and the Philippines (76%), Malaysia is not spending enough on its employees.

Source: The Rakyat Post

Halim also said these numbers takes into account the population of the above mentioned countries, with Malaysia at 33 million, Indonesia at 273 million, the Philippines at 109 million and Singapore at 5.6 million.

Halim pointed out that the low percentage of wage payment does not make sense because the average employer can afford to pay more than the minimum wage of RM1,200.

He added that the government had provided various forms of assistance to employers to regain the lost income during the Covid-19 pandemic.

“They often say now is not the right time to raise the minimum wage to RM1,500 because of economic difficulties and Covid-19. This reason has become the standard, while the government has prioritised various types of assistance worth billions of Ringgit,”

“Employers should mold a society that has purchasing power, not give society the power of debt. When paying low wages, this opens up space of debt, employees are forced to waste time working overtime.”

“Imagine, Malaysian employers only spend 25% of their GDP to pay the salaries of their employees, Malaysia has become the most stingy country in Southeast Asia,” he said.

While Malaysian bosses are not willing to spend more on its employees, it seems that Malaysian workers are likely to look for better opportunity outside of the country.

What do you think about this? Share your thoughts!

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