Communication Skills (Minimum Wages in Malaysia)

INTRODUCTION:
a) ESSAY TOPIC: Why Malaysia lives on low base wages. What are the factors that
influence the development of the economy and the solutions to be provided?

b) SPECIFIC PURPOSE: To inform the public on why Malaysia lives on low base wages. What
are the factors that influence the development of the economy and the solutions to be
provided?

c) HOOK: Did most of you understand that petrol prices only RM 7.76 per gallon? That’s up
to 2.250 litres. Well, gas costs aren't the sole expenses that have incessantly augmented
over the years. To, be honest there are thousands of people who are poorly paid due to
our country' low minimum wage, and the way are they alleged to meet their daily
needs?

d) THESIS STATEMENT: The, minimum wages in Malaysia had cause a major impact from
the aspect of political, social, and economic activities in today society.

BODY:

PARAGRAPH 1:
a) POINT: To increase in minimum wage minimize income inequalities, low-income should
be abolished as unemployment rate grows, it is unconstitutional and really affect the
productivity and skills of the employees.

b) EXPLAINATION: In, detail low-income effects on unemployment, poverty and quality of

life. However, the government fail to targeted on the wage distribution effects from the
view of labor staff and their employers. The impact of the event is on Malaysians in
particular. The market had really faced several challenges in more and more
complicated jobs among them wages are less than productivity. Once workers standards
of living are as low as they're in developing countries, the results of a salary increase
should be mirrored in some improvement in health, potency and economic
performance. With bigger commitment, attending and time keeping can probably
improve, and wage earners may be ready to figure harder. As an education is pertinent
in upgrade the staff skill, insurance additionally equally crucial to boost the amount of
productivity.

Department Statistic of
Malaysia: Salaries Wages
Report Malaysia 2018

c) Evidence: For example, in

November 2019, the Department of
Statistics of Malaysia (DOSM)
released the Malaysia Salary and
Salary Survey Report 2018, which
found Malaysia's current wage
productivity levels unaligned. The
median(midpoint) salary of
employees is RM2,308, with a
mean(average) of RM 3,087. In,
2019, the government decided to
protect the welfare of M40 and B40
worker. Well, Syed Saddiq had
stated that " more than 900,000
Malaysians have lost their jobs and
1.2 million Malaysians are not
employed, where else graduates
(bachelor/master) work as blue-
collar workers. As a sports minister
under the he somehow managed to
exert the minimum wage to
RM1,200 from RM900. Therefore, to
increase the chances of getting
better paying jobs, the ministry
encourages skills upgrading. There
are programs sponsored by the
government, companies and even
examples of self-improvement
 programs, such as MyDigitalWorkforce Work in Tech (MYWiT), Microsoft's Global Skills
Initiative that can help employees gain value.

d) LINK: The information disclosed that upskilling needed are for productive employees
with better responsibilities and risks taking. In, addition importantly, more productivity
has higher wages and living standards for workers. From the employees' purpose of
view, skills should be updated, above all through certification. Employees must be
versatile to change them to earn higher income, ought to invest more advanced
technologies so operations will be more efficient.

PARAGRAPH 2:
a) POINT: The low-income of individuals affects their purchasing power and quality of life
which makes them unsustainable in the long-term period of time.

b) EXPLAINATION: To describe, it clearly Malaysia is facing ongoing progress consumer cost

within the economy, the value of products and services are simply keeps increasing
however not their supply therefore lowering the individual’s purchasing ability. The
wages rate in Malaysia barely will increase at 1% per annum but the costs of goods and
services are unsteady actively nearly monthly and not decreasing ever. People are
forced to live the pressure of a very high habit of living on low wages. There’s a lot of
volatile prices of commodities, akin to food and energy, are the more tormented by
seasonal factors or temporary provide
conditions.

c) Evidence: The source that may be

accustomed l monthly monetary
would like is that the 2019
Belanjawanku Employees Insurance
Fund (EPF) Expense Guide, that details
the calculable minimum monthly
expenses in Klang Valley. Within the
EPF Budget Guide, it's estimated that
one person transport in Klang Valley
 spends a minimum of RM 1,870 per month, a single automotive owner RM 2,490 per
month, a family unit while RM 4,420 per month and a married couple with single child
RM5,730 per month. Keeping with the Malaysian Department of Statistics (DOSM)
report, the typical and median monthly wages and salaries of employees multiplied by
6.6% and 7.0% severally in annum. Professor of Economics, Melati Nungsari, stated
welfare policies that embody fuel and affordable childcare, tax breaks for medical
expenses, and incentives for workers and employers to rent young graduates might
probably create a decent distinction in lives.

d) LINK: By analysing the and average wages of Malaysians, we will be able to have a
clearer picture of country’s poverty, we will be better equipped to satisfy the monetary
desires of the poor. Vary the system where companies should trust equity rather than
debt to obtain financial resources and others should live within their means to reduce
their loans and debts. This methodology can overcome long-term purchasing price and
individuals get to relieve stress from high cost of living.

PARAGRAPH 3:
a) POINT: Furthermore, impact of on business and enterprise that leads workers in
Malaysia receive low minimum. Weak economic monetary result, provide chain
disruptions knocks the result of troubled sectors on employment rate.

b) EXPLAINATION: As, corporations and firms faced overall increase within the value of
doing business of higher wage prices and competition for manpower from the larger
corporations. The rise in pay might be slaked once it's in the midst of higher labour
productivity, multi-tasking and multi skilling additionally as higher stability in the
workforce as it takes more time to make transformation. To support existing business at
this very critical juncture. For top priority should be to provide more funding for
business that were forced to shut down so that business able to create employment for
all those who lost their jobs during the lockdowns. Any severity and steep increase in
wage costs would adversely have an effect on the overall prices and aggressiveness of
the businesses. So, instead of increasing minimum wages, from enterprise is that efforts
should be put in place to urgently control the rising cost of products and services.
 c) EVIDENCE: In 2019 the government
proclaimed further aid programs of RM
10 billion geared toward serving to
small and medium-sized enterprises
(SMEs) that are full of the Movement
management Order (MCO) and
therefore the Covid19 pandemic.
Grants extended to SMEs with staff
earning RM 4000 and less. Firms
receiving this profit can need to retain
their workers for 6 months throughout
the 3-month amount during which they
receive the benefit. RM 600 per
employee for companies with over two
hundred employees RM 800 per
employee for companies with 76 to 200
employees RM 1,200 per worker for
firms with up to 75 employees.
Removal of rates for the micro-credit
program of Bank Simpanan Nasional
(BSN). The theme has also been
extended to TEKUN Nasional with a
most limit of RM 10,000 for every
company at associate degree interest
rate of 0% and RM200 million are
allotted for this purpose. Lowering of
foreign worker levy by 25% for SMEs
with employee permits expiring between April 1 and Dec 31, 2020. Exemption from fees
or discounts for SMEs operational in premises closely-held by government-related
companies MARA, Petronas, PNB, and and UDA.

d) LINK: Since, small businesses associate with micro-operations plays a significant role in
nation’s economy the presence ought to be recognized by policy makers. From,
entrepreneurial perspective government takes crucial role as an enabler to support
small business survival and property with facilitating small business to agitate
businesses.
PARAGRAPH 4:
a) POINT: Inflation is deliberately losing its currency value. The, increase in price level of
goods and service from baskets can serve in economy over time, where quantitative
estimates of purchasing power declines.

b) EVIDENCE: Inflation had a worldwide impact throughout Covid19 from February 2020 to
May 2020. Meanwhile, in Malaysia, inflation turned positive in February 2021 when a

negative year. it'll increase by 2% in 2021. The Covid-19 has affected the country in
several ways, resembling health and therefore the economy. Malaysian Ringgit had
suffered a significant depreciation as result to the ASEAN financial crisis had struck the
region in July 1997.

c) Explanation: The expected results of this study show that additionally to domestic
variables such as personal consumption, public expenditure, interest rates and cash
supply, foreign factors have a considerable impact on Malaysian inflation. This will be
examined using direct effort from the charge per unit remainder of association inflation
to Malaysian. These findings are perceivable provided that Malaysia' economy has
continuously been outward looking, with active foreign trade, technology transfers and
foreign direct investments. As a result, price instability in other ASEAN countries was a
 lot of simply communicated to Malaysia. The dominant impacts of foreign elements, on
the opposite hand, ought to be viewed with caution.

d)LINK: Malaysia had implemented movement control order, moreover, it affects the supply
chain of goods. When aggregate demand is rational, but firms are unable to provide adequate
goods and services, inflation ends. Businesses are unable to provide enough goods and services
due to lack of labour and rising costs of production. To generate profit, the business increases
the price of goods in the market. This situation hardly affects the country because its supply is
sufficient to meet the population's demand.

CONCLUSION: In general, the government is expected to increase wages according to the

current economic situation in the country. Any major pay rise would produce another downside
for the company that could even be detrimental to the country. So, Government should
consider additional fiscal incentives Malaysia should enforce the minimum wage in a way that
is not due to the benefits it offers various reimbursements to local and foreign workers it is
because a reasonable and equitable distribution of income must be practiced.

Suggestion: To deal the with low-income Malaysian government should, enhance social
protection to achieve labour market by expand the coverage of employment injury insurance
for the self-employed to more sectors. Expand the coverage of unemployment benefits to
dependent self-employed workers, in particular platform workers. Young people have been
hard hit by the labour market contraction should expand the active labour market policy
measures for the youth in order to prevent long term employability also take measure of flation
by price control by setting the minimum and maximum price for important items.