1. We all would like to see Malaysia become a high-income country. However we must also be concerned about our competitiveness. Increasing incomes must raise the cost of production unless there is a corresponding increase in productivity.
2. But already we are having far too many holidays. To the 52 Sundays, have been added, 52 Saturdays. We now have holidays for the holy days of all religions, however small the followers. We now automatically replace any holiday which falls on Sunday or Saturday with another day of holiday. When we work a lesser number of days our productivity must decrease. So it will not be easy to increase productivity with the increase in minimum wages which will trigger pay increases throughout, so as to maintain the parity between the different grades of the employees. Working during holidays will also cost more. So will contribution to EPF and rates of pensions.
3. Between higher pay and shorter working hours, plus all the other costs, the cost of production of goods and services must increase considerably.
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