Due to that he asked workers to be rational about it.
The ministry had said that some five million workers in the country would benefit from a minimum wage law which will be discussed by the Cabinet this Friday.
“We are looking at all aspects of this matter and I have stressed that this is not an emotional and political matter. Whatever decision made is for the long term national interest.
“We want to set a suitable wage for the workers but we do not want it to affect the country’s ability in attracting foreign investors,” he told reporters during a press conference after attending a forum on minimum wage organised by Barsian Nasional Youth and Malaysian Trades Union Congress (MTUC).
He added that the government must consider every aspect of the policy which could benefit some five million workers.
“We do not want those will less skills to have a difficulty in finding jobs because of minimum wage. These are the issues that must be considered before making a decision.
“Therefore I ask all parties to not be emotional but rational in this issue. We want to make a decision for the long term national interest and not a short term political gain,” he said.
Subramaniam explained that the government has slow in implementing minimum wage because it feared that the policy will affect the country’s economic competitiveness.
“I think the fear has been whether we will lose our competitiveness.
At a stage of economic development, we cannot deny that labour intensive industries have contributed to our growth at one stage of our economy that gave employment to a lot of people and brought unemployment to very low rate and allowed many people in the family to get income and overall actually increased the standard living of the country.
“But of course, every country goes through phases of economic development, we have passed through one phase and we are going to another phase,” he said.
However Subramanian did admit that the minimum wage will lead to an increase in unemployment and a decrease in foreign direct investment.
“We have to address that fear and whatever decision which we make will be able to reduce such eventualities to a minimum. We may not be totally able to avoid it but we want to reduce it to a minimum level so it does not affect the country’s economy. It is not point of having a high salary with a high unemployment rate.
“Also high salary when nobody wants to come and invest in our country. So it is a balancing act and is actually walking on a very sharp knife. So we have to do a balancing act which takes in consideration of everything,” he said.
Prime Minister Datuk Seri Najib Razak had said that a sectoral minimum wage “probably offers the best way to build a skilled and competitive workforce capable of harnessing the potential of all Malaysians” at the Chinese Economic Congress on Aug 14.
Subramaniam also confirmed that the minimum wage act will be tabled in parliament in March.
“We are going to discuss regarding the basic principles of minimum wage in cabinet this Friday and we are going to put up the bill in the March seating of parliament so that is our time frame,” he said.
