Wage Overheads in Emerging Asia

Determined by the legal minimum amount stipulated in 15 different countries and added together with the mandatory welfare payments, China's workers are now amongst some of the best paid in Asia. China now is the third highest labor costs country in emerging Asia after Malaysia and Thailand.

 

However, it is expected that China's next five year plan will see mechanisms put in place to double the country's minimum wage by 2015. That will raise the Chinese figure to $3,000 plus welfare of 50 percent, assuming the latter payments remain the same. This provides a total minimum salary overhead of $4,500. In reality, most salaries will be far higher, and significantly more expensive than any other Asian country.

China - India and Development of Global Economy

In the past, we can say India is not much different with Indonesia today. But now India is catch up, as India's government prepares to submit its aproach paper for its 12th five-year plan (a plan which covers years 2012 to 2017), the Planning Commission's focus on instilling “inclusive growth” is making headway. The plan is expected to be one that encourages the development of India's agriculture, education, health and social welfare through government spending. The Prime Minister of India also expected to create employment through developing India's manufactoring sector.

And India will soon have a system in place that will simplify the process of approval for business projects, according to a government official, and it will not only encourage investors to invest in India but also young entrepreneurs to start up their own businesses. But political corruption is stubborn, while both China and India are drawing global investors' attention with their impressive economic performance, prevalent bureaucratic and political corruption has stood out as a negative factor that unfairly affects foreign enterprises and will potentially stifle economic development in the long term.