Order Description
A) Does minimum wage affects business?
The main problem that needs to be taken into account in setting the minimum wage is the predicament of unemployment. Some workers inevitably become unemployed following a minimum wage rise. If an employer were to keep all workers after a minimum wage hike, his total costs would rise and the cost of some workers would rise above their marginal revenue product. That is, the cost of workers paid higher than the minimum wage would be above the marginal contribution to sales revenue, so that hiring them would reduce profits, and firing them would increase profits. Moreover, a country which increases minimum wage become less attractive to foreign investors. Moreover, we should put effort to make further studies on which industries will get affected by the implementation of minimum wage, for example, based on my readings, the glove production is the industry that has bigger percentage of the standard wages under the minimum pay. The company hires 2,500-5,000 labours at nearly RM 700 per month whereas the minimum pay will start at RM 900 a month for labours on the Peninsular Malaysia, and RM 800 in the area of Sabah and Sarawak.....Click here to get more on this paper!!!
B) Who will benefit from the enforcement of minimum wage most: Local workers or foreign workers?
The percentage of foreign labours is twice from one-tenth to one-fifth of the entire employment in Malaysia and presently, the entire foreign labours in Malaysia have risen to more than 2 million labours. With the implementation of minimum wage, this could cause the illegal labours accesses to the country get worse. Once foreign labours get more income from Malaysia, our funds will tend to outflow from the country and will cause Malaysia to be deficit.
Base on Maybank IB Research, (2012), 33.8 percent of labours in the country were paid fewer than RM 700 per month.....Click here to get more on this paper!!!
(C) Does RM 100 wage differences between Peninsular Malaysia and Sabah, Sarawak equally fair?
The recent rates will have a higher effect in Sabah (the existing average rate of RM 577 vs. RM 800), followed by Sarawak (the existing average rate of RM 758 vs. RM 800). The researcher also would like to make further studies why there is a difference RM 100 wage between Peninsular Malaysia with Sabah, Sarawak and the impact of the big different in existing average wage with the minimum wage of RM 800 in Sabah to the businesses there.
(D) Does minimum wages increase the worker's productivity?
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