(Petaling Jaya, Tuesday): DAP urges all Malaysians to support the MTUC picket tomorrow seeking a minimum monthly wage of RM 900 and COLA of RM 300 to defend Malaysian workers’ standard of living from the influx of 5 million foreign workers by 2010. Malaysian Institute of Economic Research (MIER) executive director Prof Emeritus Datuk Dr Mohamed Ariff had expressed fears that the 5 million foreign workers will have a major impact on the employment situation in the country by 2010. At present there are about two million approved workers and 700,000 illegal workers. 

As such, there must be constructive policies to address the issue, adding that only certain sectors – like construction, plantations and domestic maid services – should be allowed to use foreign manpower. No doubt employers in the manufacturing sector preferred foreign workers to locals, as they could pay them lower wages. However this is unhealthy as it would only add on to social problems resulting from the large foreign worker population, direct competition for jobs between Malaysians and the foreigners and artificially depressing the level of wages. 

The time has come for the Malaysian government to attract investment which are value-added and high quality that are capital-intensive, knowledge-based and technologically-centered to reduce our chronic reliance on cheap foreign labour. Attracting such investments would not only increase the skills and training of our workers but also help to increase our level of wages. If the government continues to attract labour-intensive industries then, our wage levels will always be low and influenced by the wages paid to foreign workers. 

For this reason MIER’s concern over “jobless growth” where the economy grew at 5.9% in the last five to six years but 200,000 fewer jobs were created last year, is completely justified. What is the meaning of economic expansion to ordinary workers when there are fewer jobs available?  

As a result of lack of well-paying jobs Malaysian workers are reluctant to accept jobs with wages paid at the level of foreign workers. This has inevitably resulted in the deterioration of our standard of living due to rising costs and decline in the value of real wages after taking into account inflation. 

The Ninth Malaysian Plan(9MP) states that in 2004, the mean monthly household income was RM 3,249. The RM 1,200 minimum monthly wage and COLA is much lower than the RM 3,249 mean monthly household income. The Selangor household’s average monthly income is even higher at RM 5,175/-. When Selangor Menteri Besar Datuk Dr Mohd Khir Toyo unilaterally declared Selangor as a developed state on 27 August 2005, he proudly claimed that Selangor enjoy a per capita income of US$12,876 (RM48,928.80 a year for each person) or RM 4,000 a person a month. Why do workers in Selangor not be given a minimum sum of RM 1,200 a month when the average monthly sum that each person from Selangor should have if there is equitable distribution of wealth is RM 4,000/-?