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Higher wages not necessarily the reason for higher home prices

COMMENT Assuming that 200 construction workers are employed to build a condominium block worth RM400,000 for each unit. There are eighty units in the 20-block building and within two years, the job has to be completed.

Assuming that we are currently paying RM1,000 for each foreign worker, but if we decided to employ local workers, we need to add another RM1,000 on average.

Instead of RM60,000 cost of wages per condominium, the cost is now an additional RM60,000. Although this is based on a layman’s cost estimates, it clearly shows that an additional RM1,000 on average to attract a local employee would not make a huge impact on the price of the condominium.


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