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26 April 2012

Wages and Higher Income for Better Distribution of the Economic Pie


After I had posted an article on “Minimum Wages, Productivity and Inflation.” I came across an article in the Star newspaper, (Seah Chiang Nee, Insight Down South) on a somewhat similar issue.

Singapore’s former National Wage Council chairman, Professor Lim Chong Yah was reported calling for a national wage strategy to close the economic gap. “To narrow the economic gap between the rich and poor, Mr. Lim had suggested a shock wave therapy, to raise the monthly salaries of workers who earn S$1,500 (RM3,680 or less by 50% over three years.”

Professor Lim’s proposal on raising salaries of those earning S$1500 or less by 50% and a simultaneous freeze on those earning more than S$1500 a month over a 3 years time frame created some commotion.

Some Singaporeans were happy, others not so happy. Professor Lim said that Singapore’s lowest paid workers has been underpaid because of the influx of cheap foreign workers.

Doesn’t that ring similarly for us Malaysians too? We need to have a more equitable distribution of income to raise living standards for our poor and middle classes too.


For my earlier comments on minimum wages, kindly click on the link :

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