MASEU: STATUTORY ON MINIMUM WAGE MUST BE INTRODUCED

KUALA LUMPUR, Feb 22 (Bernama) -- The Malaysian economy's practice of
letting open market forces decide on wages in this country is no longer
practical, the Malaysian Airlines System Employees' Union (Maseu) said Monday.

Hence, Malaysia should have a statutory on minimum wage to safeguard workers
in the country, said Maseu executive secretary Mustafar Maarof.

He said, almost 100 per cent of private sectors in the country practised the
European and Western model of business.

"Most business consultants for companies in Malaysia are from these
countries
which have a minimum wage, for instance, United Kingom, United States,
Australia, Switzerland, South Korea and Japan," he said in a statement here
Monday.

He said, most business models in Malaysia were linked to these countries but
the difference is that most of these countries had their own minimum wage and
safety net for their workers, as compared to Malaysia.

"In these countries, at any time, new models of business are intorduced as
key driver, with the intent of developing the economy aggressively, but at the
same time, ensuring the welfare of their workers," he said.

"In the absence of statutory minimum wage in Malaysia, employers often
insist that wages must be left to be determined by market forces, which in
several cases, fall below the poverty line of income," he said.

Mustafar said, among the Asean countries, Thailand, Laos, Myanmar and
Vietnam had a statutory on minimum wage, while Singapore and Brunei paid much
higher for the lower income group due to their economic status and cost of
living.
On Feb 21, Human Resources Minister Dr S. Subramaniam said the
government had rejected a demand from Indonesia that its maids be paid a minimum
monthly salary of RM800 (US$235).

"We will allow the market to decide on the salary. If we allow one country
to set terms, we will also have to entertain the others," he added.

-- BERNAMA