Local Worker vs Foreign Worker

A posting by a friend in a group read like this:

For that kind of job, get foreign worker agent to supply you foreign worker. Since your requirement is small,outsourcing is the best, no need to take obligation with immigration dept & other authorities. They will supply you under their payroll for some management fees (around RM200-300/month/ worker-complete with the worker accomodation & transport) besides the worker salary (maybe around RM700 - 8 hours/day job for 6 days/week).

Just make sure that the agent is reliable agent. I got a reliable contact here (so far) who did business in KL also. Mr Jeromy 012-7808777 - nephew to Daiman Group's boss. Mind you he drives Merc - just doing this business and enjoying good contact with that Kementerian Sumber Manusia for licence & approval!

This give me an impression that average wage for factory worker in Malaysia is RM1000 a month. How do I come up with this figure? If a foreign worker gets RM700 plus accomodation and transport valued at RM300 a month, which total RM1000 a month, how much would you pay a local worker?

Then comes the next question, what is the average wage of Malaysian workers? Sure there is a shortage of workers in agriculture, manufacturing, construction etc that forced us to recruit foreign workers.
Have we tried a simple solution before we start recruiting foreign workers that is, increase their wages?
Then try another solution, locate industries where labour force is abundant, land is cheap and cost of living is cheaper. That does not equate Klang Valley.