Need to Restructure Malaysian Economy for Better Paying Jobs

KUALA LUMPUR, Sept 18 (Bernama) -- There is a need to restructure the economy to create better-paying jobs and subsequently reduce Malaysia's reliance on cheap unskilled foreign labour, says Deputy Defence Minister Liew Chin Tong. Also, he said the economy is currently a “triangle”, where the bottom (or lower income segment) is huge, while the ideal structure is a “diamond” where the middle is thick and big, reflecting a wider middle income segment. “The concern should not be on the exact minimum wage figure. Instead, it should be about how we use the levers of power and tools of government to create better-paying jobs,” he told reporters here Tuesday. He was a panel speaker at the ‘Ekonomi Rakyat Series #2: Turmoil in Global Finance: is Malaysia Vulnerable?’, organised by the Dewan Perniagaan Melayu Malaysia (DPMM or Malay Chamber of Commerce). In giving an example, Liew said a job that was well-suited for military veterans was as armed guards, but it currently only pays about US$362 (RM1,500) and thus becomes the domain of unskilled foreign labour or even illegal foreign workers. “Military veterans will not be interested in RM1,500 because their pension is more than that. If the job pays US$724 (RM3,000), of course, they will take it. “We need to restructure this by dealing with the licence holders. It will not be easy and there are toes that will be stepped on,” he added. Meanwhile, another panel speaker, Employees Provident Fund, Economics and Capital Markets Department Head, Nurhisham Hussein said the recent US$12 (RM50) increase to the minimum wage would have no impact towards the economy and the people. He said EPF data showed the economy would be able to handle a 10-15 per cent increase in wage for now, but, the RM1,500 minimum wage promised by the Pakatan Harapan (Alliance of Hope) government would likely be achieved gradually in four years. -- BERNAMA