Emulate Singapore’s model to protect local workers, says Wee

Ayer Hitam MP Wee Ka Siong has called on the Malaysian government to adopt Singapore's wage and foreign worker quota models to protect local workers and drive sustainable income growth. Singapore uses a local qualifying salary (LQS) and dependency ratio ceiling (DRC) system to restrict foreign recruitment until companies meet local hiring benchmarks.

Wee emphasized that implementing such a framework in Malaysia could help differentiate wage standards and increase people's income. He stressed the importance of linking wage growth to productivity rather than relying solely on administrative enforcement. Wee cautioned against a potential two-tier labour market, warning that skilled workers might migrate to corporations offering higher compensation, leaving micro, small, and medium enterprises (MSMEs) with thin profit margins.

Data from the Small and Medium Enterprises Association of Malaysia (Samenta) indicates that seven out of ten SMEs currently have less than six months of cash reserves. Wee warned that rising labour costs, higher electricity tariffs, and overlapping taxes could lead to widespread business closures. He proposed publishing an impact study by the National Wages Consultative Council, setting an expiry date for the MSME exemption with at least 12 months' notice, and granting additional tax deductions to MSMEs investing in automation and training to raise worker salaries.