Beyond Minimum Wages, Productivity Is the Real Key

Whenever a country needs to introduce a minimum wage system or policy, it inevitably presents a significant test for its political leaders. Formulating and implementing such a policy requires great wisdom, as it involves a difficult and often painful process of decision-making. I can say with certainty that there is no such thing as a perfect policy.

First, we need to examine minimum wage policies from different perspectives and at different levels. These include the perspectives of employees, employers, the market, the nation’s foreign exchange reserves, national income and foreign investors, among others. Each perspective brings different opinions, particularly those of employers and employees. However, their interests do not necessarily have to be in conflict. They can also be aligned.

From an employee’s perspective, it is natural to want a higher income while putting in less effort. From an employer’s perspective, the ideal situation would be to hire highly efficient workers at lower wages. However, both ways of thinking are unhealthy and unfair.

In practical terms, employees’ wages should be determined by their productivity. For instance, if Employee A demonstrates high productivity, they should receive fair compensation that reflects their output. Take a carpenter as an example. If he can produce ten chairs in a day, he should be paid accordingly for the ten chairs he makes. However, if he can only produce three chairs in a day, he should accept wages that correspond to the output of those three chairs.

Companies that determine wages based on productivity are often highly competitive in the market. When a company generates higher profits and becomes more competitive, it will also contribute more income tax to the government. If its productivity and competitiveness reach international standards, it stands a better chance of securing overseas orders. Naturally, such a company may eventually gain international recognition. At the same time, it helps Malaysia earn more foreign exchange, making the country stronger. As the Malaysian Ringgit strengthens, the nation’s dignity and standing will also be enhanced.

As national income increases, the government will have greater financial capacity to assist less fortunate Malaysians. Within the United Nations, member states are sometimes pressured by one another to accept refugees and provide for them unconditionally. I believe this is unfair. In my view, the governments of the refugees’ countries of origin should take responsibility for their own people and ensure that they are properly resettled, rather than shifting that responsibility to other United Nations member states in the name of human rights while neglecting their own obligations. Every country’s tax revenue should be distributed fairly for the benefit of its own citizens.

Conversely, if the minimum wage threshold is set too high without a corresponding level of productivity, it could trigger a negative chain reaction, seriously affecting private companies, publicly listed companies, government departments and the national economy as a whole.

Today’s university textbooks often overlook the importance of productivity. Much of the knowledge taught in universities no longer aligns with modern business models and practices. As a result, many graduates face a harsh reality upon entering the job market. They struggle to adapt to society and find it difficult to survive independently in the workforce. This, in turn, weakens the nation’s competitiveness. Recently, we have seen news reports that the Malaysian government has called for Myanmar nationals and Rohingya refugees to return to their countries of origin because Malaysia cannot accommodate such a large number of refugees. I believe this is the right decision and one that demonstrates accountability to the Malaysian people.

Personal growth and strength, respect within the family, social stability and national strength all begin with an individual’s determination to become stronger and more self-reliant. The government’s role is to introduce appropriate policies. Even the right policies account for only 30% of success, while the remaining 70% depends on the spirit of self-improvement, self-reliance and self-discipline among the people. Self-improvement, together with greater personal productivity, forms the foundation of individual income. If Malaysians can embrace the values of self-improvement, self-reliance and self-discipline, I believe Malaysia will naturally progress towards becoming a developed nation.

Translated from original article source:

https://www.enanyang.my/news/うあうがいあいく/NYPLUS/いおいぎぎきか