Something gotta give
The pay hike in the public sector will push the private sector to follow suit. The only limiting factor will be the bottom line. In the private sector, pay hike can only be sustainable when the organisation is making money and not because someone else is paying more. Then we have the rise in rental in commercial and residential properties. And we have our famous GST increase plus all the increases. Suddenly no one is asking whether we can be competitive when everything is going up. Can we compete with China and India with our rising cost? Or we have a magic formula that says cost is no longer an issue and we can continue to raise our operating cost and remain competitive? I can only see foreign workers and FTs playing a greater role in our economy and at the expense of our citizens. Something gotta give. The investors have voted with their feet in the past. And they will do so again. And if Malaysia plays its cards right with the IDR, more companies will relocate. The slack may be taken up to some extent by the IRs. Would we face the same predicaments when job losses were the order of the day? Or would the pay hike brings about more talented solutions to our past problems when the world economy swings the wrong way?