Home Web Specials Guan Eng’s call for wage discrimination must be condemned!

Guan Eng’s call for wage discrimination must be condemned!

‘Lucky he is not our finance minister’ - PSM condemns Lim’s proposal to exempt employers from minimum wage and EPF contributions for migrant workers

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Lim Guan Eng’s argument in Parliament yesterday [saying there is no need to mandate the RM1,700 minimum wage for migrant workers] is not just discrimination but a blatant endorsement of modern-day exploitation.

His proposal to underpay migrant workers for the three-D jobs – dirty, dangerous, difficult – that Malaysians shun reveals his true agenda.

Lim appears interested only in scoring points among his towkay (business associate) friends. He fails to realise that lower wages for foreigners will encourage employers to employ more migrant workers than locals since it will be less costly.

If Lim genuinely wants to help Malaysian workers, he should just ask employers to pay local workers a higher salary without touching on the minimum wage. Why try to push wages lower rather than increase them?

Now Lim is calling on Malaysia to dump International Labour Organization (ILO) standards. Let me remind him of the following:

  • ILO Convention No 100 (1951) mandates “equal pay for work of equal value” – regardless of nationality.
  • ILO Convention No 111 (1958) prohibits discrimination based on “national extraction” (explicitly covering foreign workers).
  • ILO Convention No. 143 (1975) requires equal treatment for migrants in wages and working conditions.

Yet, Lim casually dismisses these standards, arguing “we are not bound by UN and ILO conventions”.

This hypocrisy is staggering, especially after years of government efforts to align with ILO standards. It appears the DAP looks up to everything that the People’s Action Party’s Singapore does, including lower human rights and workers’ rights standards.

The socialist party PSM has long condemned the 2% Employees Provident Fund contribution for foreign workers (compared with 11–13% for locals). Now, Guan Eng wants to eliminate even this paltry 2%, further entrenching inequality.

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Lim has been consistent with his discriminatory policies. As Penang chief minister in 2013, he called for delayed minimum wage implementation for migrants – proving his consistent disregard for labour rights.

Former Bank Negara governor Muhammad Ibrahim recently highlighted that real wages have fallen threefold over 40 years. Lim’s proposal would actually suppress wages further by creating a legislative loophole for cheaper migrant labour. It would encourage employers to hire foreigners over locals, worsening local unemployment. It would also undermine decades of labour rights progress, reducing Malaysia to a low-wage economy.

In summary, Lim Guan Eng’s stance amounts to let’s get more foreign workers into the country, make it easier, but make sure we pay them low wages so that employers will be happy. His suggestions call for lowering our labour standards and practising discriminatory policies.

The attempt to create rivalry among local and foreign workers will only end up with all workers losing their rights.

PSM reiterates our call for equal minimum wage for all workers, equal EPF contributions for migrants and strict enforcement of ILO conventions. – PSM

S Arutchelvan is the deputy chairperson of Parti Sosialis Malaysia.

The views expressed in Aliran's media statements and the NGO statements we have endorsed reflect Aliran's official stand. Views and opinions expressed in other pieces published here do not necessarily reflect Aliran's official position.

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