This is because employers need not pay levies and agency fees.
While agency fees can cost more than RM5,000 per worker, the levy varies
according to sector.
The annual levy for workers in the agricultural sector is RM410, while
the amount for those working in restaurants is RM1,850.
"Why not pay a local more than RM1,000 instead of hiring a
foreigner, who comes with added cost?
"So, yes, the minimum wage will reduce the dependency on foreign
workers in the long term," said Dr Subramaniam.
He also said the offer of better incentives would encourage employees to
perform and increase productivity.
He hoped a minimum wage would change the perception of some Malaysians
towards certain jobs such as in the construction sector.
In an immediate response, Malaysian Employers Federation executive
director Shamsuddin Bardan said paying minimum wage to get employers to hire
locals could work in theory.
However, he added, employment of foreign workers in country was not a
matter of choice.
"There are certain sectors in the economy where no matter how much
we pay, the locals are not keen," he said, adding that plantation and
construction could be lucrative sectors, depending on one's productivity.
He suggested that the government look into re-branding jobs if they
wanted to reduce dependency on foreign workers.
Prime Minister Datuk Seri Najib Razak may announce a national minimum
wage, which is likely to be between RM800 and RM1,000, on Workers Day.
Read more: 'More benefits in minimum wage' - General - New Straits Times
KD: Let's we think again about the wage..
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