Previously, UniKL Business School economist Associate Professor Dr Aimi Zulhazmi Abdul Rashid said the ideal and decent wage for a single person or a family with two children should be at least RM5,000, depending on whether they live in the city or rural areas.
He pointed out that based on 2023 data from the Department of Statistics Malaysia (DOSM), the average monthly minimum living cost for a household was RM4,729, according to Sinar Harian.
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Employers are still recovering from the Covid-19 impact
Following this, Malaysian Employers Federation (MEF) President Datuk Dr Syed Hussain Syed Husman shared his thoughts, saying the suggestion was unrealistic given the current economic climate.
Syed Hussain explained that most employers (especially those in the micro, small, and medium enterprise (MSME) sector) are still trying to recover from the financial impact of the Covid-19 pandemic.
Datuk Dr Syed Hussain Syed Husman
“It doesn’t reflect the challenges employers face”
Syed Hussain added that rising operating costs, global supply chain disruptions, and shifting consumer demand have made it tough for employers to raise salaries without risking business sustainability.
“In reality, setting a so-called ‘decent wage’ at RM5,000 or more doesn’t reflect the challenges employers are currently facing, especially given the global economic situation and the United States’ decision to impose reciprocal tariffs on exports, including those from Malaysia,” he said.
He also pointed out that the United States’ move to slap a 24% tariff on Malaysian products (even with a three-month delay) puts more pressure on export competitiveness and hits company revenues directly.
“If labour costs also spike, Malaysian exporters may lose out, and investors may look to countries with cheaper labour instead,” he added.
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