Fair wages make underutilization of skills less disastrous
The article argues that fair wages can help reduce the persistent problem of skill underutilization in Malaysia’s labor market. It notes that despite similar underutilization rates in developed countries, fair compensation and strong vocational systems contribute to better alignment of skills with jobs. Increasing wages, especially for low-income workers, is proposed as an initial step to ease cost-of-living pressures and improve productivity. The piece also calls for strengthening training systems, social safety nets, and collective bargaining to address medium- and long-term labor market challenges.
11 May 2023 I The Edge Malaysia
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