Tuesday, May 1, 2012

Minimum Wage announcement: Disparity that doesn't make sense

The minimum wage of RM900.00 per month as per the announcement by Najib, as expected received kudos from the backbenchers (or is it the back-benders?), and at the same time receiving lukewarm responses from the man in the street. I am not going to discuss about the need or the benefits of the minimum wage at this point of time (I have blogged about it previously and will try to rationalize it in coming blogs), but one thing that left me astounded is the disparity in the minimum wage between Peninsular Malaysia, and East Malaysia (Sabah, Sarawak and Labuan).

While it is a common knowledge that, generally, the price of goods and services in East Malaysia is comparatively higher by about 10% to 15% (for those of you who are not aware of this, I will give you a simple example, just take a look at the price of newspapers or magazines, there would always be two prices, one for West Malaysia and one for East Malaysia which would be comparatively higher), in the minimum wage thas was anounced, they get a comparatively lower minimum wage, albeit by RM100.00. Just do the Maths, it doesn;t tally up, it doesn't make any sense. but then again, what do you expect from a government that is BaNcrupt of ideas, innovative and creative ideas that is.

It is believed that the lower minimum wage that was announced for our fellow citizens in the East Malaysia,is in order to protect the producers/firms/cronies, just ask KJ.s parrot, Rahman Dahlan @ Kota Belud, the man who is full of flimsy justification on any matters or issues, but the again how are you going to do justice for the consumers/households? They ( the people in East Malaysia) has a higher general price, which translates to lower purchasing power, or in other words lower real wage or wealth effect, yet they end up getting a comparatively lower minimum wage. Don't you think they are shortchanged?

God, have mercy and help us (including our brothers and sisters across the South China sea)

Adios for now.........A.H.Baharom

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