Parti Sosialis Malaysia (PSM) today hit out at Penang Chief Minister Lim Guan Eng over his “hugely disappointing” proposal to delay the minimum wage policy for foreign workers.

PSM cental committee member Rani Rasiah said the move not only exploits foreign workers but will do more harm than good for the local workforce.

"Creating an income differential by denying migrant workers the minimum wage will not change this situation.

"In fact it will only encourage companies to employ foreign workers because it is cheaper.

"Lim’s (left) remarks are thus short-sighted and harmful for Malaysian youths and workers as well," she said in a press statement today.

Rani said the federal government is already "complicit" in the exploitation of both local and foreign workers and said Lim should not take a similar stance.

"Instead of addressing the demands of Malaysian workers for better wages and working conditions, the government has flooded the labour market with cheap migrant labour.

"This has severely curtailed the bargaining power of local labour, and created youth unemployment among unskilled, academically poor Malaysian youths, a situation that is a contributing factor to social problems," she said.

Lim had propose that employers of small and medium enterprises (SMEs) be given a five-year grace period before the implementation of the minimum wage policy as it will increase business cost and encourage an outflow of money form the country.

Lim had cited that businesses were complaining having to fork out even more for local workers as Malaysians are upset at having the same wage rate as foreigners.