EXPERT WARN THAT ROLLING MALAYSIAN MINIMUM WAGE INCREASES WILL SEE ROBOTS REPLACE UNSKILLED WORKERS

MINIMUM wage increases undertaken every two years by the Malaysian government are doing more harm than good to the country’s low-skilled workers, an expert has warned. Dr Carmelo Ferlito, senior fellow at Malaysia’s Institute for Democracy and Economic Affairs (IDEAS) argued that a higher minimum wage could help create a “higher unemployment rate among the low-skilled workers due to automation.” After every such wage hike, it gets cost effective for businesses to automate the work done by low-skilled workers – effectively shutting them out of the job ...


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