If the people in charge of national security and economic planning were to trouble themselves to think harder and clearer on the ecosystem of Malaysia based on putting Malaysia's national interest first and foremost they ought to come to a realisation that they have much to expiate.
First, on what basis was the decision made to open the spigots to allow cheap foreign labour to enter Malaysia?
If it was due to intense lobbying by the property development and plantation sectors, then, the basis may be wrong if the decision makers failed to take into account the socio-economic impact of the usage of cheap foreign labour.
Did anyone bother to prepare econometric models to consider the displacement effect that cheap foreign labour will have on Malaysia's own indigent labour class? Where would this class of Malaysians go when they are displaced by cheap foreign labour? Where will they get their income? With low skills, poor education it is not a stretch to forecast that these Malaysians will be pushed to the fringes of society.
And, "fringes of society" clearly means crime, lawlessness and unsavoury activities.
Second, what is so wrong about raising the income levels for the labouring class?
Yes, the cost of everything will rise commensurately. What is the big deal with that if it lifts up the entire substratum of Malaysian society?
Plantation sector
In the case of the plantation sector, no access to cheap foreign labour would have resulted in higher wages for Malaysian labour AND it would have forced 2 things to happen-
- Increase the incentive and urgency to innovate the plantation sector. This may manifest itself in the form of more intense downstream activities and discovery of new applications for rubber and palm oil products.
- Increase the incentive and urgency for Malaysian companies to search for cheaper and lower cost countries to establish plantation activities.
Instead, due to molly-coddling by the Malaysian government, the silly and myopic arguments used by Malaysian plantation owners resulted in an inefficient plantation sector that is now at risk of losing Malaysia's edge to countries like Indonesia and those in the African and South American continents.
The sad reality is that Malaysia was bound to lose its dominance in the plantation sector anyway. But Malaysian companies should still be the dominant players in the rubber and palm oil sectors IF they now work at double-speed to conquer the emerging upstream plantation jurisdictions.
Don't just be the kings of our own backyard! That should be the message that the Malaysian policy makers should be exhorting the plantation sector to do.
Property development sector
As for the property developers the self-same critique also holds true.
No access to cheap foreign labour would have resulted in higher wages for Malaysian labour AND it would have forced 2 things to happen-
- Cost of construction would have gone up. Prices of properties would have gone up. The property market would have been cooler and less speculative. Property developers would have faced profit margin compression but, still be profitable.
- Increase the incentive and urgency to innovate the property and construction sector by using different construction materials and using better equipment.
Better paid Malaysian workers
Better paid Malaysian labour with a commensurate higher cost of living has the salutary effect of improving the quality of life in Malaysia.
Malaysian labourers will have a chance to get their children a better education. This type of mindfulness, about the need to have a better education, usually comes with having better income.
With less cheap foreign labour and a Malaysian labour class that has better wages we will experience a higher cost of living. This higher cost will be tempered by higher income all around for Malaysians. The resulting effect is less crime.
Another resulting effect is that Malaysia and its citizens will have to greater incentive to move up the value chain of skills.
My visceral and indelible impression of reasonably high wage income in the labour class was a mature age classmate in Melbourne Australia in the 1980s. Robert D. was already in his late 30s when he enrolled in Law School. He chose to be a bricklayer for some years. It was a decent enough job, income-wise. Constructions sites in Australia have always been safe and clean environments, unlike the cesspools and dengue-breeding places we have here.
My other impression is that of a Greek Australian family who still manifested a strong Greek-accented Ozzified English when spoken in a reasonable posh suburb in Melbourne. The guy owned just one heavy duty lorry which he drove himself. His neighbours were bank managers and white-collar management level. Is that cool, or, what?
I'm not saying that we have to be at that kind of stratospheric level. I'm just saying that for the benefit of all Malaysians, super-rich, rich, well-off, breakeven and poor, our economic system must put Malaysians first.
Not just the rich. Not just the owners of plantation and property development sectors.
Just let the common wealth of our country percolate down more than it does now.
This can be done, in direct fashion, via enlightened economic and labour management policies.
My visceral and indelible impression of reasonably high wage income in the labour class was a mature age classmate in Melbourne Australia in the 1980s. Robert D. was already in his late 30s when he enrolled in Law School. He chose to be a bricklayer for some years. It was a decent enough job, income-wise. Constructions sites in Australia have always been safe and clean environments, unlike the cesspools and dengue-breeding places we have here.
My other impression is that of a Greek Australian family who still manifested a strong Greek-accented Ozzified English when spoken in a reasonable posh suburb in Melbourne. The guy owned just one heavy duty lorry which he drove himself. His neighbours were bank managers and white-collar management level. Is that cool, or, what?
I'm not saying that we have to be at that kind of stratospheric level. I'm just saying that for the benefit of all Malaysians, super-rich, rich, well-off, breakeven and poor, our economic system must put Malaysians first.
Not just the rich. Not just the owners of plantation and property development sectors.
Just let the common wealth of our country percolate down more than it does now.
This can be done, in direct fashion, via enlightened economic and labour management policies.
There are a trillion reasons as to why the scenario that I have sketched will be argued to be impractical, idealistic and, even Utopian.
But, as with all right-thinking Malaysians, I wish for a better society and a better country for my family, my friends and my colleagues.
Is this challenge too much to ask or, to expect?