M`SIAN GOVT LOOKING AT BEST FORMULA FOR MINIMUM WAGE

KUALA LUMPUR, Aug 14 (Bernama) -- The government is looking at the best
formula to address the issue of minimum wage, Prime Minister Najib Razak said
Saturday.

"While we would like producers and companies to move up the value chain, the
government also understands that leaps like that don't happen overnight,
especially for companies in labour-intensive industries.

"This is why the Human Resource Ministry will be submitting their case to
the Cabinet soon. Towards this end, I urge all employers to seriously consider
minimum wage as a business strategy and an opportunity to revitalise their
business."

The prime minister said this when opening the Chinese Economic Congress with
the theme, "The Role of the Chinese Community in Achieving the New Economic
Model (NEM) and 10th Malaysia Plan (10MP) Targets", here.

He said the government had taken note of the Malaysian Chinese Association's
(MCA) desire for a comprehensive minimum wage policy as a measure to build human
capital to the levels necessary in a high-income economy, and which was also
necessary to reduce the nation's dependence on foreign labour, especially in the
construction and services
sectors.

"A sectoral minimum wage probably offers the best way to build a skilled and
competitive workforce capable of harnessing the potential of all Malaysians," he
said.

Earlier, MCA presidentDr Chua Soi Lek in his speech said that a study by the
Human Resource Ministry showed that 34 per cent of 1.3 million workers earned
less than RM700 (US$221) per month, which was below the poverty line of
RM720(US$225) per month.

MCA is one of the three major component parties of the ruling Barisan
Nastional (National Front) government.

"What is worrying is that a World Bank study on wage trends in Malaysia
recorded only an annual 2.6 per cent growth in the last 10 years. The influx of
foreign workers depresses the wage increase of local workers.

"To accelerate the process of reducing reliance on foreign labour, MCA
calls for the execution of a minimum wage policy on a sectoral and regional
basis. Over 90 per cent of the countries in the world already have legislations
in place on minimum wage but Malaysia is still lagging behind," he said.

Dr Chua said the setting up of a minimum wage system would be in line with
MCA's call for rationalisation of subsidies.

"The implementation of the subsidy reduction scheme cannot stand alone as it
needs to be complemented with a minimum wage system, to offset the negative
impact of the reduction of subsidies," he said.

The minimum wage policy is expected to be tabled to the Cabinet in October.
-- BERNAMA