Saturday, March 03, 2012

Dr M Twisted Logic on Minimum Wage




Now we know why Malaysia is still caught in the middle income trap. Dr Mahathir said Malaysia may become bankrupt as is happening now in the West if the federal government caves in to public pressure and sets a minimum wage policy.


Earlier, the ex-premier had defended the NEP by claiming that the policy had helped  to create quite a number of billionaires and millionaires. It is quite evident Mahathir's 22-year rule and his continuous interference with government affairs is bias towards the elites, rich and powerful.

It does not matter to Mahathir if more than 70% of local salary men are earning below RM3,000 a month. It does not matter if they find their consumer power being grossly eroded by rampant inflation. No wonder, more Malaysians are not able to afford to buy a home. Mahathir said it's okay as long as rich Malaysians and foreigners are able to absorb the sales. Those who cannot afford should change their lifestyle and consumption patterns. Yeah, they should start living up the trees and in the jungle.

It is a shame for him to say that the implementation of minimum wage may bankrupt Malaysia. We say that the RM100 billion wasted during his tenure for bailing out failed projects, cronies and through corruption is highly likely to bankrupt Malaysia.

His stupid project such as the crooked bridge at the Johor causeway, Proton, MAS, Perwaja, Bakun, dodgy defense procurement, Cyberjaya, Putrajaya, F1 race and others had wasted billions of federal coffers. He had preferred to waste financial resources on wasteful and mediocre projects and allowed people of resource rich states such as Trengganu, Sabah and Sarawak to remain poor and destitute.

It is hypocritical for Dr Mahathir to even suggest that minimum wage may bankrupt Malaysia. At 86-year old, Mahathir should follow Najib's foot step to ask for forgiveness over his follies, poor decisions, bad governance and leadership of this country.

I hope Barisan realize that the less they listen to Mahathir, the better this country would become.

Mahathir should donate his wealth and live the life of those earning below RM1,000 a month to understand their hardship.

With better income, the money will help to boost the local economy. Economic multiplier will act to double or triple the income stream across all sectors.

What's wrong with minimum wage if there is nothing wrong with the NEP, corruption and wastage of public funds?




5 comments:

Chong Kok Wai said...

Increasing wages will have to be compensated with higher productivity. If wages increase and productivity remains low, the foreign investors will be moving out to other countries. We can all increase the wages of cleaners and tea ladies to 10k a month. Companies will then flock to neighbouring countries which offer lower cost neighbour countries. Inflation will also increase. Wages can be increased if we have quality workforce which we dont.

najib manaukau said...

You are talking about a man who said that NEP has helped to create billionaires. He is just confirming that he has indeed hijacked NEP to steal for himself, his family, his proxies and his cronies in the name of the Malays just because his grand father and father married Malays.
To begin with his grand father was a pariah from Kerala who came to work as a security guard in the Kedah Palace. Because of the prejudice prevailing then, the shenanigan;'s grand father could not find an Indian lady to marry to and to satisfy his lust he married a Malay. So did was his father and as a consequent of these unions the shenanigan always maintains he is a Malay.
What about the Malay loyal family members and the many rich Malays over the years married Europeans and non Malays as their wives? Why then are all the children from all these mixed marriages are known as Malays and not Europeans and non Malays ? If someone cares to look into the matter he or she will surely find that some of these descendants to day are rulers and sultans in Malaysia.
That perhaps is the reason why these so call Malays are so much fairer than what a Malay should look like. A good example would be the shenanigan who has all the features of a Pakistani or that of an Indian. In other words not only that the shenanigan hasn't got the look of a Malay because the truth is he is a 'Chap Chong' and not a Malay. And using the same logic his grand children and great grand children to day should be Chinese because of the parents marriages to Chinese.
No matter what the excuses are the descendants will always be 'Chap Chong' like the shenanigan and will never be Malays or Chinese !

Anonymous said...

Mandated minimum wages is nothing wrong, except in the mind of a cunning doctor. If the ordinary working class Malaysian can be assured of at least earning minimum level of liveable wages in relative to the present high inflation rate living condition, it doesn't sit well with this billionaire former offical personal financial interests, that is why he steadfastly objected to such proposal with illogical economic reasons. The hardship face by low and middle income Malaysians can not be easily understood by a billionaire per se, it is just the way it work around the globe.

Anonymous said...

Mandated minimum wages is nothing wrong, except in the mind of a cunning doctor. If the ordinary working class Malaysian can be assured of at least earning minimum level of liveable wages in relative to the present high inflation rate living condition, it doesn't sit well with this billionaire former offical personal financial interests, that is why he steadfastly objected to such proposal with illogical economic reasons. The hardship face by low and middle income Malaysians can not be easily understood by a billionaire per se, it is just the way it work around the globe.

Anonymous said...

@Chong Kok Wai,

Chong, I agree that should be a balance i.e. wage increase must be compensated with higher productivity. The problem is how to achieve this? The productivity of most established companies have already more or less stabilized. An employee can only produce that much. Unless you take away their lunch hour and make them work on Sundays and public holidays on a normal working day remuneration. This, of course, cannot work. They will strike. So, companies have to absorb the extra expense of minimum wages. There is no way out for them. For years, they have made their profits and enjoyed it. Now it is time to pay back the workers. It is too bad. If the companies cannot manage, then close down. To hell with the emplyees, right? You people only think of huge profits and never the people's welfare. Minimum wage will be a great help to those of the lower income group.