QUOTE(feynman @ Feb 20 2012, 11:30 PM)
It's not a question of starters or seasoned professionals. The point here is same work then logically same level of compensation or at least same localised domestic purchasing power within perhaps a band of variance. RM3k gross will give you the same domestic purchasing power as US$5k domestic purchasing power?
For professionals who sell their brain juices, that should be the case. The only companies who seem to adhere to this principle are multi-national partnership firms.
While macroeconomics tells us that supply and demand of labour determines the wage level equilibrium brought up earlier, that doesn't seem to be necessarily true. For a shortage of labour would mean an increase in wage levels. However, I don't think many here would dispute the fact that Singapore probably has a more skilled workforce and is in no shortage of supply since the immigration is quite flexible when it comes to skilled labour. That said, their wage levels, after appropriate adjustments should be lower than Malaysia.
Conversely, we in Malaysia should see an increase in wage levels since we do not have an abundance of supply of skilled labour. How do we reconcile this?
The problem I believe is structural and because of that companies in Malaysia take advantage of that. We kena screwed at the end.
You're obviously still fresh off the boat and you have to realise that what you read in the textbooks is obviously different to reality.
You are right that Malaysia has a structural problem and this is primarily because of the fact that we continue to suppress the real price of goods and services through subsidies and dependence on foreign labour.
The reason why MNC firms pay what they do in Malaysia is because it is reflective of the margins they can earn. Even though they are termed 'multinationals', most local offices have their own org structures, KPIs and financial metrics to achieve. You'd rarely see the Singapore office of a company subsidising that of another country. MNC partnerships can afford to do this, but how many are there left in the world.
In terms of supply of skilled labour, I'd actually say that Malaysia has sufficient supply, but too few jobs. Count how many Malaysian professionals are working in Singapore, London and HK. Bear in mind that when working overseas, there are glass barriers if you're Malaysian which is why many eventually return. At that point, everyone is forced to take a paycut. Good luck getting a job outside of Malaysia, but don't think the generations before you haven't already thought of your simple logic. The only ones who have it easy are the select few who transfer from top ibanks or MBBs. Based on what I've read I don't think you're ready for any.
Back to the thread, if you join ACN as a mgmt consultant, try get on the international assignments cos that is where the allowances (ie. $$) come into play.