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Subject
Wage politics in South-east Asia.
Significance
In July, Malaysia will raise the mimimum wage by 11-15%. The country is one of five in South-east Asia, along with Indonesia, Thailand, Cambodia and Myanmar, increasing minimum wages in 2016.
Impacts
Labour costs in Vietnam are rising faster than in Indonesia, its primary competitor in the region.
Non-compliance will limit the impact of recent increases on domestic consumption.
A sizeable part of the ASEAN workforce is informally employed and is, therefore, unaffected by wage increases.
Keywords:
South-east Asia,
AP,
ASEAN,
Cambodia,
Indonesia,
Malaysia,
Myanmar,
Thailand,
Vietnam,
economy,
industry,
politics,
finance,
government,
manufacturing
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2016
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