State-based minimum wage will leave some with weaker growth, says economist

Free Malaysia Today

Sunway University’s Yeah Kim Leng says paying less could stunt development due to weaker economy, slower industrialisation, lower purchasing power, and a fall in living standards.   Read More:  https://www.freemalaysiatoday.com/category/nation/2025/02/12/state-based-minimum-wage-will-leave-some-with-weaker-growth-says-economist/   Laporan Lanjut:  https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/02/12/gaji-minimum-ikut-negeri-boleh-bantut-pertumbuhan-ekonomi-kata-pakar/   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------  Check us out at https://www.freemalaysiatoday.com  Follow FMT on Facebook: https://bit.ly/49JJoo5  Follow FMT on Dailymotion: https://bit.ly/2WGITHM  Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h  Follow FMT on TikTok : https://bit.ly/3uKuQFp  Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX  Follow FMT LinkedIn - https://bit.ly/42YytEb  Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj  Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------  Download FMT News App:  Google Play – http://bit.ly/2YSuV46  App Store – https://apple.co/2HNH7gZ  Huawei AppGallery - https://bit.ly/2D2OpNP   #FMTNews #FMM #MinimumWage #EconomicDisparities

Transcript

00:00An economist has dismissed a proposal for the government to introduce state or regional models

00:06to determine future minimum wage adjustments.

00:09Ya Kim Ling of Sunway University warned that a varied minimum wage

00:13could potentially widen economic disparities among states.

00:17He said states paying a lower minimum wage may attract industries that seek to pay low wages,

00:23leading to a higher concentration of low-value industries.

00:27Ya said this would lead to development in the state being stunted

00:31due to weak economic growth and low purchasing power.

00:35Last week, the Federation of Malaysian Manufacturers suggested

00:38that the government develop state or regional-based models for future wage adjustments.

00:44However, Barjoyar Bardai of Malaysia University of Science and Technology said

00:49a standardized national minimum wage was ideal for Malaysia.

00:53He said FMM's proposal would not necessarily solve the problem

00:57as there will always be employers who are capable of paying higher salaries

01:01but choose not to do so due to the minimum wage policy.

01:05Pan Yujo, FMT News.

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Transcript

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