In the last couple of weeks, we have seen several groups clamour for minimum wage. At a time when the global economy is going into a depression, this demand must appear to be totally out of place. So, it seems that there is never a correct time to consider minimum wage.

We all know that Malaysia is a middle-income economy. We have moved up the lower bracket of developing countries but have yet to join the ranks of developed nations. It would appear that the ambition of our political leaders is to propel the country forward into "developed" nation status.

Now that the architect of that vision no longer thinks we can achieve "developed" nation status in the next 12 years, it seems that we are all needing to put on our thinking caps once again.

The old formula was based on consistent economic growth, a pliant workforce and a large middle-class. The world economy going bust on such a monumental scale was not part of the equation. Neither was the middle-class swing to the opposition on March 8. Now, it seems we have political instability to add to our woes.

So, where are we today? A nation divided right down the middle politically, a country unable to accept a single educational system and a people divided into different classes. Wealth disparity is so bad that Malaysians are actively embracing socialism, at least semi-consciously.

At least, few believe in the old idea that "wealth trickles down". Yes, we created a few billionaires and we enhanced business. The two created employment, so much so that we imported over a million low-skilled foreign workers to cope with it. But somewhere along the lines, a lot of wealth did not trickle down.

If anyone cared to read Charles Dickens' novel ‘Hard Times’, they would have come across Mr Thomas Gradgrind, who believed wholeheartedly that we must trust in facts. The market, it seems, will regulate our desires systematically and create a utopia. The wealthy would set aside some of their wealth to help their poor brethren. We know what sort of a world Victorian England was all about.

What Mr Dickens has taught us is that greed is part and parcel of human nature. That is why we need to legislate and regulate the market. Workers are often unable to get an equitable share of the profits that their labour has produced. Hence, to make sure that they have enough to survive and improve themselves, we need to introduce minimum wage.

There is great under-employment amongst Malaysians. How come we need so much foreign labour? Why can't we get locals to take up these jobs? It is because we are addicted to cheap foreign labour. This has distorted our economy, creating a lot of wealth at the top 1% and reducing 40% of Malaysians under the poverty bracket (based on RM1,500 as the poverty line).

We also claim that without a maid in the house, the entire household would collapse. But look at developed nations. People just cannot afford a maid and their households have not collapsed. With minimum wage, we can create good quality day-care centres for children of working parents. Malaysians will become more humble without "authority" to "iron" human beings.

With minimum wage, we will encourage the managing class to be more nimble. There is a lot of deadwood in many companies but they will be removed once companies have to allocate more resources to pay minimum wages. Executives will have to constantly better themselves and in the process propel companies into the real knowledge economy.

Foreign investors would also be keen to invest in a country that is moving forward by treating its workers fairly. They know that the wage system is fixed at a particular minimum point and that they can demand for better quality work. Malaysians will have to work much smarter to meet new targets and this will help the entire economy forward.

As for political stability, the underlying reason why so many Malaysians voted opposition has less to do with ideology and more to do with where voters think we are headed. The days of being a low-cost producer are over. We now need to move forward and upwards. A country

divided by a huge income disparity cannot possibly be stable. The middle class are the first to realise this and they will vote in a new government come 2013 if nothing positive is achieved.

Minimum wage is not the solution to all our problems but it is certainly one way we can move forward carrying as many Malaysians with us as possible. It has its detractors and they will say we will lose our competitive edge, creating unemployment. But the real issue here is social justice and we need to put on new thinking caps, one that is less "Gradgrindian".

For even the "heartless" Mr Gradgrind can have a change of mind, figuring out that facts cannot deliver all. So, in the beginning we will see some decline but in the long run, we will see a country that is leaner and more resilient.