China labor salary hikes will not have long term affects on profits, says MSI chairman

Micro-Star International (MSI) chairman Joseph Hsu has indicated that the recent rise in monthly salaries in China will not affect the company's profit in the long term as all companies will eventually face pressure to raise wages and the increased costs for personnel will be reflected in end-product prices.

Hsu noted that MSI's salary level in China has always been above the standard and the company even increased its monthly salary by about 15-20% when the labor shortages first happened in the first quarter. Meanwhile, the company claimed it also provides better employee welfare than most other firms.

To handle the salary trend, MSI has already planned some measures that will suit local government policies, and has not yet experienced any employee protests, Hsu noted.

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