KUALA LUMPUR (Thomson Financial) - Human Resources Minister Fong Chan Onn said foreign workers will flock to the country and rob locals of jobs if the government sets a minimum wage for private sector employees, a report said Tuesday.

Fong said the 900 ringgit monthly minimum wage demanded by Malaysian unions is higher than the average wage in neighbouring countries.

He said it is a mistake to believe that a minimum wage rule will mean more jobs for Malaysians as it will also apply to the 1.5 million foreign workers who are in the country legally.

'It's only a myth as foreigners will be flooding our land for jobs with many (locals), especially in rural areas, being deprived of jobs,' Fong was quoted saying by local daily newspaper New Straits Times.
 
Thousands of workers, led by the country's largest union group, Malaysian Trades Union Congress (MTUC) staged a nation-wide protest last week to demand the government fix a 900 ringgit monthly minimum wage.

According to the MTUC, wages of plantation, textile and garment and hotel workers in Malaysia remain below 400 ringgit a month.

About 7 million workers will benefit from a minimum wage rule, union officials said.

Malaysia is one of Asia's largest importers of labour, with foreign workers both legal and illegal making up about 2.6 million of the country's 10.5 million workforce.

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