{
  "id": 4739474,
  "title": "Gaji lebih tinggi mesti disertai produktiviti lebih tinggi",
  "url": "https://urgent.news/2026/08/31/gaji-lebih-tinggi-mesti-disertai-produktiviti-lebih-tinggi",
  "topic": "world",
  "section": "World",
  "published": "2026-08-31T23:00:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today-freemalays",
    "url": "https://www.freemalaysiatoday.com/category/bahasa/pandangan/2026/09/01/gaji-lebih-tinggi-mesti-disertai-produktiviti-lebih-tinggi"
  },
  "original_language": "en",
  "account": "Presiden Persekutuan Malaysia, Jacob Lee, has expressed his agreement with the necessity of considering the issue of wages in the context of global competitiveness and increasingly competitive international trade. After working for a Panasonic manufacturing plant in Malaysia for over a decade, the author has gained insight into the industry perspective on why multinational companies and factories constantly reassess manufacturing strategies, production costs, productivity, and the ability to produce competitive products for the global market.\n\nPanasonic's philosophy is well-known: \"Making People Before Making Products,\" which emphasizes the importance of developing employees, skills, and capabilities as the foundation of successful manufacturing. However, Malaysia faces a significant challenge: the cost of hiring and developing workforce continues to rise, while our country competes with nations that have vastly different cost structures. The proposal to increase the minimum wage from RM1,700 to RM3,100, an increase of 82 percent, should not be viewed solely as an issue of wages. It is an issue of overall Malaysia's cost competitiveness.\n\nIn the manufacturing sector, two main components directly influence production costs: raw materials and labor costs. Raising the minimum wage not only impacts minimum-wage workers but also has a ripple effect throughout the organization. Companies may need to raise wages for supervisors, engineers, and skilled workers to maintain a fair wage gap. Ultimately, some of the additional costs must be borne by the companies, shifted to higher product prices, or compensated through increased productivity.\n\nFor export-oriented manufacturers, there is a limit to how much additional cost can be passed on to international customers. Global buyers always have the option to source their supplies from other countries. This is where Malaysia must look for short-term solutions to the wage issue while focusing on the country's long-term competitiveness. The author fully supports the aspiration for Malaysian workers to receive better wages and enjoy a higher standard of living. However, higher wages must be supported by higher productivity, automation, digitization, skill development, better use of technology, and improved supply chain efficiency. Otherwise, we risk creating unintended consequences: Malaysia may not attract high-value investment, become less attractive for labor-intensive manufacturing, and multinational manufacturers may accelerate automation, relocate production, or seek cheaper sources abroad. Panasonic's recent decision to permanently halt AVC production in Shah Alam, with some output shifted to other facilities, including China, is a development that should be given serious attention by the Malaysian government. The author does not claim that the decision was solely due to labor costs or wage increases; it is a more nuanced conclusion. However, this development reminds us that multinational companies always reassess their global manufacturing locations and structures based on competitiveness, productivity, technology, economies of scale, and operating costs.\n\nThe recent decision by Panasonic to permanently halt AVC production in Shah Alam, with some production shifted to other facilities, including China, is a development that should be given serious attention by the Malaysian government. The author does not claim that the decision was solely due to labor costs or wage increases; it is a more nuanced conclusion. Nevertheless, this development reminds us that multinational companies always reassess their global manufacturing locations and structures based on competitiveness, productivity, technology, economies of scale, and operating costs.\n\nThe author's aim is not to maintain low wages artificially, but at the same time, we should not implement wage increases that are economically unsustainable for the industry. How can we make Malaysian workers more productive and make the manufacturing sector in Malaysia more competitive so that higher wages can be paid sustainably? Panasonic's experience provides an important lesson. In global manufacturing, companies do not compete solely on labor costs. They compete based on total costs, productivity, quality, technology, supply chain efficiency, economies of scale, and ease of bringing products to market. Malaysia needs to raise wages through higher productivity, not just a higher minimum wage through regulation or legislation. If we can strike this balance, higher wages can become a result of a stronger Malaysian economy, rather than inadvertently weakening the manufacturing ecosystem and the investment that actually creates jobs.",
  "summary": "Malaysia perlu menyasarkan 'gaji lebih tinggi melalui produktiviti lebih tinggi' bukan sekadar 'gaji minimum lebih tinggi melalui peraturan atau undang-undang'.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Free Malaysia Today",
        "title": "Gaji lebih tinggi mesti disertai produktiviti lebih tinggi",
        "url": "https://urgent.news/2026/08/31/gaji-lebih-tinggi-mesti-disertai-produktiviti-lebih-tinggi-4742723",
        "published": "2026-08-31T23:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}