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Economy

Asian manufacturing expands in April but wage pressures grow

Job cuts followed pay rise in South Korea, PMI survey shows

Higher minimum wages approved by Vietnam's government in 2017 will likely affect labor-intensive industries such as garment manufacturing.   © Reuters

KUALA LUMPUR -- Already under pressure from rising materials costs such as crude oil, manufacturers in Asia are now facing another cost-related worry -- rising minimum wages, which weigh on employers and have led to some job cuts, according to the latest monthly Nikkei Purchasing Managers' Index survey.

Overall manufacturing activity expanded in eight of 11 major economies surveyed, underpinned by steady domestic demand, the April PMI showed. 

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