Minimum wage hike 'may boost economy'TAIPEI, Taiwan -- The government's recent minimum wage hike may put pressure on businesses' operating margins, but giving workers more disposable income may boost the economy, the Taiwan Institute of Economic Research (TIER, 台經院) said Monday. Although the minimum wage hike will primarily benefit foreign laborers, it may lift the national average salary level, Lin said. Lin said the wage hike could create a "snowball effect" in the economy, in which workers' increased disposable incomes spur greater consumption. TIER Chairman Chiang Pin-kung (江丙坤) cautioned that higher wages may reduce Taiwan's ability to attract foreign investment. "The best scenario, in my opinion, is investment growth followed by business growth and then salary increases," Chiang said.

Source: The China Post September 12, 2016 18:00 UTC