KL ranks second in ASEAN labor costs<\/p>\n
KUALA LUMPUR (AFP): Malaysia, facing a shortage of workers,
\nhas the second-most expensive labor force after Singapore in the
\nAssociation of Southeast Asian Nations (ASEAN), a government
\nstudy showed yesterday.<\/p>\n
In terms of skilled labor, Malaysia was the third most
\nexpensive, after Thailand and Singapore, according to the
\nMinistry of International Trade and Industry (MITI) study.<\/p>\n
The findings were first revealed Wednesday by Minister of
\nInternational Trade and Industry Rafidah Aziz at the ongoing
\nannual MITI dialogue with the private sector.<\/p>\n
\"However, Malaysia came up tops as far as cost competitiveness
\nfor utilities like electricity and water, and second most cost
\ncompetitive for telephone facilities, after Singapore,\" Rafidah
\nsaid.<\/p>\n
The study was commissioned to identify and analyze the cost of
\ndoing business in Malaysia and to determine factors that
\ncontributed to rising costs.<\/p>\n
ASEAN groups Malaysia and Singapore with Brunei, Indonesia,
\nthe Philippines and Thailand.<\/p>\n
The study focused on five industry groups, chemicals and
\nchemical products, electrical and electronic components,
\nmachinery and transportation equipment, rubber-based products and
\ntextiles and apparel.<\/p>\n
Input materials and labor were among the major determinants of
\ncost competitiveness.<\/p>\n
\"While local manufacturers presently are able to contain
\nincreases of such costs and sustain their cost competitiveness,
\nthis is being eroded by competitiveness from neighboring
\ncountries that do not face such constraints,\" she said.<\/p>\n
Rafidah advised labor-intensive industries that had plans to
\nexpand to branch into countries like Indonesia, where labor was
\nabundant.<\/p>\n
Malaysia, she said, was now fine-tuning its recruitment of
\nforeign workers to ensure that they were brought in for selected
\nindustries.<\/p>\n
Prime Minister Mahathir Mohamad said on Monday that Malaysia
\nwas trying to reduce its reliance on its estimated one million
\nforeign workers.<\/p>\n
Foreign labor was placing an increasing strain on Malaysia's
\nsocial infrastructure, particularly housing, medical and
\neducation facilities, Mahathir said.<\/p>",
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"sponsor": "Okusi Associates",
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