Minimum Wage: Moving Malaysia Backwards

FACULTY OF BUSINESS AND ACCOUNTANCY
University Malaya
CSGB6101 Human Capital Management
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In the late 2010, the issue of a minimum wage policy has been debated in Malaysia after nationwide picketing organized by the Malaysian Trade Union Congress (MTUC). Prime Minister Datuk Seri Najib asked businesses to embrace “fair and equitable” wage as part of strategy to make Malaysia a high income nation. In this study, it is debated on why a minimum wage policy should not be implemented, and implications of its enactment. | Minimum Wage: Moving Malaysia BackwardsGroup: Chua Siang Cher, Lance CGA090035Gan Chai Yee, Amelia CGA090033Chen Khong Ling CGA110039Abbas (Arad) Toushkan CGA100085 | Semester 1, 2011/12 | Lecturer: Assoc. Prof. Dr. Angeline Tay |

Purpose of this document: * This document provides an outline of the wage context in Malaysia, and opines a market forces policy.

Sections of the Document Page * Executive summary 3 * Introduction 4 * Overview of minimum wage of minimum wage in Malaysia 5 * Literature review
Definition and objectives of minimum wage 6
Empirical evidence on minimum wage 7 Weaknesses of minimum wage 8 * Discussion 13 * Conclusion 14 * References

Executive Summary

Recent headlines like Occupy Wall Street which protest against the 1% elite of the world monopolizing the world economy and setting the business rules has got the world’s attention on income inequality. The minimum wage policy is always keenly debated as a tool to address the income inequalities in the labor market between the low and high-income groups. The debate of minimum wage in Malaysia heated up recently, with both labor interest group and employer interest group lobbying the government on behalf of their own agenda.

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