The Malaysian Employers Federation has called on the Government to reconsider the implementation of the RM1500 minimum wage, as the business environment is still not fully recovered, and now is not the time to increase the cost of doing business.
President Datuk Dr Syed Hussain Syed Husman said the majority of Malaysian businesses are not ready and not in a position to implement the proposed new minimum wage as they are still reeling from the economic shock brought about by COVID-19 and the devastating impact of the recent major floods.
He said more efforts should be directed towards business recovery in the private sector and controlling the rising cost of products and services. “We must remember that most Malaysian businesses are micro, small, and medium enterprises, whereby 98.9 percent are in this group. So, when we talk about wages and cost, we must think of their survival and sustainability,” he said in a statement today.
According to MEF, MSMEs are already suffering and even a small increase in business cost would aggravate their plight and they might close down.
In addition, the increase will only push the cost of goods as business owners will surely not be able to absorb the increase will pass down to the consumer. Another point the federation pointed out is that the RM1,500 minimum wage would mostly go to foreign labour as the locals are already paid higher wages which will result in the foreign outflow.