[Malaysia] Call to review minimum wage implementation and effect on struggling SMEs

Malaysia's international trade and industry minister has said that any move to increase Malaysia’s minimum wage must be reviewed because the majority of SMEs are continuing to recover from the impact of the pandemic, Malay Mail reports.

Speaking on March 8, Datuk Seri Mohamed Azmin Ali said today said the Cabinet will meet again next week to finalise the decision, claiming more time is needed to study the impact of such a mandate on SMEs that produce lower revenue.

“Apparently every two years, the ministry needs to review the wage for the workers but we also take into consideration the current situation where most of the SMEs and informal sectors are just about to recover from the pandemic.

“So [it is the matter of] whether it is the right time for us to impose this wage subsidy on the smaller companies including the SMEs,” he said during a press conference at the Malaysian Investment Development Authority (Mida) here.

“So this matter was discussed again in the Cabinet meeting last week, and the Cabinet has directed the ministry to review back the policy before we officially announce the implementation of this and to see what are the impacts on the SMEs and also informal sectors,” the minister said.

In February, the Malaysian government had reportedly urged more employers to offer salaries exceeding the existing minimum wage following a positive move by Aeon Co (M) Bhd and Westports Holdings.

Prior to that, Prime Minister Datuk Seri Ismail Sabri Yaakob had announced that the government was holding engagement sessions with employers on the RM1,500 minimum wage to enable it to be implemented holistically.

In response to Ismail’s announcement, the Malaysian Employers Federation said that now is not the right time to increase the cost of doing business and the proposed RM1,500 new minimum wage implementation would derail the economic recovery.

Opposition Leader Datuk Seri Anwar Ibrahim said the government should continue with the implementation of their minimum wage policy without yielding to the conglomerates’ objections against the proposed increase.

The Port Dickson MP said some giant corporations in Malaysia have recorded strong profits as a result of higher productivity but nonetheless oppose the minimum wage policy implementation.

Source: Malay Mail

(Quotes via original reporting)

Malaysia's international trade and industry minister has said that any move to increase Malaysia’s minimum wage must be reviewed because the majority of SMEs are continuing to recover from the impact of the pandemic, Malay Mail reports.

Speaking on March 8, Datuk Seri Mohamed Azmin Ali said today said the Cabinet will meet again next week to finalise the decision, claiming more time is needed to study the impact of such a mandate on SMEs that produce lower revenue.

“Apparently every two years, the ministry needs to review the wage for the workers but we also take into consideration the current situation where most of the SMEs and informal sectors are just about to recover from the pandemic.

“So [it is the matter of] whether it is the right time for us to impose this wage subsidy on the smaller companies including the SMEs,” he said during a press conference at the Malaysian Investment Development Authority (Mida) here.

“So this matter was discussed again in the Cabinet meeting last week, and the Cabinet has directed the ministry to review back the policy before we officially announce the implementation of this and to see what are the impacts on the SMEs and also informal sectors,” the minister said.

In February, the Malaysian government had reportedly urged more employers to offer salaries exceeding the existing minimum wage following a positive move by Aeon Co (M) Bhd and Westports Holdings.

Prior to that, Prime Minister Datuk Seri Ismail Sabri Yaakob had announced that the government was holding engagement sessions with employers on the RM1,500 minimum wage to enable it to be implemented holistically.

In response to Ismail’s announcement, the Malaysian Employers Federation said that now is not the right time to increase the cost of doing business and the proposed RM1,500 new minimum wage implementation would derail the economic recovery.

Opposition Leader Datuk Seri Anwar Ibrahim said the government should continue with the implementation of their minimum wage policy without yielding to the conglomerates’ objections against the proposed increase.

The Port Dickson MP said some giant corporations in Malaysia have recorded strong profits as a result of higher productivity but nonetheless oppose the minimum wage policy implementation.

Source: Malay Mail

(Quotes via original reporting)