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Foreign workers keeping inflation rate down

Expelling foreign workers, like what the government is planning to do, is not going to help the economy of Malaysia. In fact, it will drive the inflation rate (the real rate – not government figures) up significantly. The reason for this is because many menial jobs like restaurant waiters and construction workers will not be filled by locals who request a much higher pay for the same jobs.

So with foreign workers gone, employers will have to turn to the locals to fill up the positions. The wages for locals are between 30% to 40% higher than what the foreigners earn. So where would the extra money to meet this increased cost come from? Consumers and end-users will ultimately have to bear this added cost once again further driving up the inflation rate.

Instead of driving foreign workers away, Malaysia should seriously look into developing its skilled labour by providing more technical and skilled training. This can be achieved by setting up technical schools for the various professions like IT, engineering, agriculture and business.

These schools should be concentrated outside of the cities where our young dropouts or those who complete their Form 5 or Form 6 can enroll in. These polytechnic schools should be both affordable and of a high standard.

We should leave menial labor to the foreign workers as they help build infrastructure and the economy. We should concentrate on raising our level of knowledge and further educating our young Malaysians so that they can contribute to the wealth of the nation and are marketable both in Malaysia and abroad.

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