{
  "id": 4742723,
  "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",
  "topic": "world",
  "section": "World",
  "published": "2026-08-31T23:00:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/bahasa/pandangan/2026/09/01/gaji-lebih-tinggi-mesti-disertai-produktiviti-lebih-tinggi"
  },
  "original_language": "en",
  "account": "Presiden Malaysia, Jacob Lee, represents the view that Malaysia needs to view the issue of wages in the context of global competitiveness and increasingly competitive international trade. Having worked for a Panasonic plant in Malaysia for over a decade, I understand from an industry perspective why multinational corporations and factories always reassess manufacturing strategies, production costs, productivity, and their ability to produce competitive products for the global market. Panasonic has a well-known philosophy: \"Making People Before Making Products,\" or developing and nurturing people before creating products. Developing employees, skills, and capabilities are crucial to high-quality manufacturing. However, there is a significant issue Malaysia must face: the cost of hiring and developing labor continues to rise while we compete with countries having 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 seen solely as a wage issue. It is about the overall cost competitiveness of Malaysia. We must be careful that in solving one problem, we do not create another. For the manufacturing sector, two main components directly affect production costs: raw materials and labor costs. Raising the minimum wage not only impacts workers at the minimum wage level but also has a ripple effect throughout the organization, as companies may need to raise wages for supervisors, engineers, and skilled workers to maintain a reasonable wage gap. Ultimately, part of the additional cost must be borne by the company, shifted to higher product prices, or compensated through productivity increases. For 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 supply from other countries. This is where Malaysia needs to find a solution for short-term wage issues while focusing on long-term competitiveness. I fully support the aspiration for Malaysia's workers to receive better wages and enjoy a higher standard of living. However, higher wages must be supported by higher productivity, automation, digitalization, skill development, better supply chain management, and technology adoption. Otherwise, we risk unintended consequences: Malaysia may not attract high-value investments, become less attractive for labor-intensive manufacturing, and multinational manufacturers may speed up automation, relocate production, or seek cheaper labor sources. The recent decision by Panasonic to temporarily halt AVC production in Shah Alam, with some production moved to other facilities, including China, is a development that deserves serious attention from the Malaysian government. I am not saying the decision was solely due to labor costs or wage increases; it is a more nuanced conclusion. However, this development reminds us that multinational corporations always reassess their global manufacturing locations and structures based on competitiveness, productivity, technology, economies of scale, and operational costs. Therefore, the government must carefully consider the benefits and consequences before making any large-scale move. The goal should be to maintain wages at a low level artificially, but at the same time, we should not implement wage increases that are economically unsustainable for business. How can we make Malaysia's workers more productive and the manufacturing sector more competitive so that higher wages can be paid sustainably? Panasonic's experience provides a valuable lesson. In global manufacturing, companies are not solely competing on labor costs. They compete based on total costs, productivity, quality, technology, supply chain flexibility, economies of scale, and ease of bringing products to market. Malaysia needs to raise wages through higher productivity, not just minimum wage increases through regulations or legislation. If we can achieve this balance, better wages can become a result of a stronger Malaysian economy, not a factor that inadvertently weakens the manufacturing ecosystem and 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",
        "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."
}