Strengthening the productivity-wage link – If
workers can benefit from growth, this will increase
household consumption and drive domestic and
regional demand as well as spur inclusive and
sustained economic growth. This requires effective minimum wage institutions to help those at
the bottom of the wage distribution, along with
better mechanisms for collective bargaining –
which would also minimize industrial conflict.
Linking wage growth to productivity growth
would ensure that workers share in the fruits of
economic dynamism in ASEAN.