More Pay For Less Work May See Malaysia Facing Financial Trouble - Mahathir

KUALA LUMPUR, March 2 (Bernama) -- Former prime minister Tun Dr Mahathir Mohamad fears Malaysia may face great financial trouble or bankruptcy like the West, if the government pays more for less work.
He said this was what happened when wages and compensations for work were not accompanied by increases in productivity.
"We all would like to see Malaysia become a high-income country. However, we must also be concerned about our competitiveness.
"Increasing incomes must raise the cost of production unless there is a corresponding increase in productivity," he said in his latest entry titled "Minimum Pay" in his blog, www.chedet.cc.
He said the West today was in great financial trouble with at least one country going bankrupt after overpaying its people.

tunku : what Tun Mahathir said is right. the examples are in front of us. you can see it clearly how america, europe's economy in trouble right now. it is all because of less productivity but with higher pay.we can give higher pay but it must be at par with the productivity. we should not follow the western blindly.still not too late for us to change things.