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Over-reliance on foreign workers reason for unequal pay structure, says minister

Johari claimed luxury hotels in Jakarta, Indonesia charged up to three times more than those in Kuala Lumpur, which meant Malaysian hotels could still raise their prices to accommodate salaries for locals. — Picture by K.E. OoiKUALA LUMPUR, July 18 — Malaysia’s heavy reliance on foreign workers is hampering the country’s salary structure, Second Finance Minister Datuk Johari Abdul Ghani said today.

He said that while reliance was understandable in the plantation and construction industries, there is a price gap in the services industry that can make way for better pay for locals.

“You look at our hotels, [it is] among the cheapest in this region. Why? Because they get cheap workers. So if they pay properly to the locals, RM2,000, RM1,800 or RM2,500, they can always raise up the hotel price,” he said in a radio interview with BFM on its The Breakfast Grille programme this morning.

He claimed luxury hotels in Jakarta, Indonesia charged up to three times more than those in Kuala Lumpur, which meant Malaysian hotels could still raise their prices to accommodate salaries for locals.

“I still think that [in] this system, we need to be very focused, to make sure that whichever industry that we want to employ foreign workers, it has to be [an] industry that really really locals can’t adopt,” he said.

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from Malay Mail Online | All http://ift.tt/29Nl5ql

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