The Malaysian Employers Federation (MEF) today reiterated its stance that now is not the right time to increase the cost of doing business in the country and stressed that the proposed RM1,500 new minimum wage implementation would derail our nation’s economic recovery.
As reported by national news agency Bernama, MEF president Datuk Dr Syed Hussain Syed Husman asserted that the majority of Malaysian businesses are not ready and not in an ideal position to implement the proposed increase in minimum wage as they are still recovering from the economic shock brought forth by the Covid-19 pandemic as well as the recent major floods. Syed Hussain stressed,
“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 (MSMEs), whereby 98.9 per cent are in this group.”
“So, when we talk about wages and cost, we must think of their survival and sustainability,”
The MEF president further said that even a small increase in business cost would aggravate the plight of businesses in Malaysia and might even force them to close. Hence, an increase of RM300 to RM400 per month on top of the existing national minimum wage requirements is too much for them to sustain.
Syed Hussain then elaborated that the proposed new RM1,500 minimum wage will push up the cost of goods and services and increase operation costs too. Therefore, it is not the time to implement any increase in minimum wage.
He also claimed that the increase of minimum wage would only benefit foreign labour in Malaysia as Malaysians are already paid higher wages than RM1,500 and hence, it would cause further money outflow out of the country. Furthermore, he also said that it would demotivate those with no salary adjustment as their current wages are well above the minimum wage.
The MEF president stressed,
“Any increase in minimum wage will benefit employees whose wages are lower than the new national minimum wage rate and the bulk of them will be the foreign workers,”
What do you guys think of MEF’s statement? Share your thoughts with us in the comments.
Also read: Singapore’s Waste Management Workers Will Be Able To Earn Up To RM10k per Month By 2028!
