3. So the increase in minimum wage would result in increases in the wages of all categories of workers and employees. Costs of everything must certainly go up.
6. If investments do not come in, the number of new jobs created would be diminished. This might increase unemployment.
7. Unless Government revenue increase substantially the increased salary bill would have to be met by reducing development budget. This will have other unwelcome side effects.
8. I am sure the Government financial experts have already taken into consideration all these things when they advised the Cabinet. It is just that I worry. Some rating agencies have been talking about down-grading this country. I hope they are not serious. Malaysia has always managed its finances well. I am sure that productivity would increase to compensate for the higher wages and overall costs.
(The views expressed here are those of the author/contributor and do not necessarily represent the views of TTKM. This article was first published in Tun’s blog http://chedet.cc/?p=749 in 2012. Read what he said yesterday : https://ttkm.com.my/2018/08/11/tiada-kenaikan-gaji-penjawat-awam-buat-masa-ini/)