Wage politics across South-east Asia will diverge
Friday, April 8, 2016
Subject
Wage politics in South-east Asia.
Significance
In July, Malaysia will raise the mimimum wage by 11-15%. The country is one of five in South-east Asia, along with Indonesia, Thailand, Cambodia and Myanmar, increasing minimum wages in 2016.
Impacts
- Labour costs in Vietnam are rising faster than in Indonesia, its primary competitor in the region.
- Non-compliance will limit the impact of recent increases on domestic consumption.
- A sizeable part of the ASEAN workforce is informally employed and is, therefore, unaffected by wage increases.
Related articles
