It is ridiculous to talk of a minimum wage ie, one minimum wage for all occupations regardless of the qualification of the worker (academic and skilled). The figure RM900 has been bandied about as a fair minimum wage for Malaysian by no other than the MTUC.

Should a recent school-leaver with an SPM cert be given the same minimum wage as an STPM (Upper Sixth Former) holder? I am all for minimum wage, but it should not be one single minimum for all job applicants. The minimum wage should be decided by market forces.

By fixing one single minimum wage even for SPM-holders, we are forcing employers to overlook these school-leavers in favour of more experienced workers who have been in the job market for a few years. No employer will pay these school-leavers the minimum wage of RM900 (and another RM300 for Cola) plus EPF and Socso contributions when they can get more experienced staff to do the job for around RM750.

y fixing minimum wage (salary) at RM900 per month, many average performing students will also be encouraged to stop schooling earlier because they think they are entitled to this minimum wage.

They will eventually suffer because by not improving themselves academically while still young, they deprive themselves of the chance of moving into better paying jobs after they gain more years in employment. They are gambling on their future for short-term gain.

The salary (or wage) to be paid to salaried workers should be left to market forces because the market is the best yardstick for measuring the contribution of labour. If a worker feels that he or she is worth more in the market, then let him or her leave his or her current job for a better paying job elsewhere.

There should be free mobility of labour in the market place. Forcing employers to stick to an arbitrary minimum wage will make our country less competitive because regardless of productivity, we have to fork out RM900 for a worker.

Of course, degree holders should be paid much higher than RM900 if the demand for their skills justifies it. The minimum wage imposed for them is usually above the market rate - otherwise it would be ineffective. For example, it is ineffective to set a minimum wage of RM900 for a degree holder when the market pays them RM1,500 per month.

Minimum wage should also not be aimed solely at eradicating poverty. School-leavers join the workforce simply to be financially independent of their parents. The majority do not get married and start a family immediately after leaving school and as such do not have to support a family right away.

They most often live with their parents for several more years after leaving school. By the same token, they help increase their existing household income to above the poverty level, even if they are not paid the minimum wage as required by MTUC.

Take the case of those working at fast food restaurants. By requiring them to be paid RM900 (+ RM300), the price of fast food will have to be increased substantially, in turn reducing profits which in turn may require manpower downsizing. This will reduce the chances of these school- leavers being employed there.

It is easy to talk of minimum wage without a thorough analysis of the consequences on the workers themselves. Isn't it better for more youths to be employed than to have a minimum wage but with reduced employment opportunities?

Those countries that have adopted the minimum wage laws use hourly wage rates as a basis for minimum wage - not salaries, which are paid on monthly basis to business executives. Thus the MTUC should be talking about minimum hourly wage and not monthly salaries applicable to executives.

What is their hourly figure then? Minimum wage in Malaysia will spell a gloomy future for small and medium-sized enterprises, especially those in labour-intensive sectors (services) because more than 50 percent of their costs are for their payrolls.