PETALING JAYA: The implementation of the new minimum wage of RM1,700 will require employers and employees to focus on efficiency, productivity and output amid higher employment costs, says the Associated Chinese Chambers of Commerce and Industry Malaysia (ACCIM).
In a statement Saturday (Feb 1), ACCIM also hoped businesses would be able to partially absorb any increases in costs due to the rise in minimum wages.
"We hope that businesses would be able to partially absorb increases in cost to ensure no significant increases in the prices of goods and services as an increase in minimum wage must be matched with a corresponding rise in productivity growth.
"Given the increasing business costs, ACCIM would like the government to best manage the proposed implementation of a multi-tiered levy, especially for SMEs and also reconsider the mandatory contribution to Employee's Provident Fund (EPF) by non-citizens," ACCIM said.
The association also called on the government to consider formulating a minimum wage rate based on regional and local conditions, rather than a single national minimum wage policy, says.
ACCIM said regional minimum wages can be a better option than a single wage policy because it can account for regional differences in cost of living, economic development and labour market conditions.
"Some businesses have raised concerns that a single national minimum wage may not be appropriate and is not a 'one size fits all' solution given the economic disparity between the less developed and more developed states," the association said in a statement Saturday (Feb 1).
"Micro, small and medium enterprises (MSMEs) in less developed states cannot afford to cope with higher minimum wages given relative weak demand conditions," it added.
However ACCIM said the implementation of the new minimum wage of RM1,700 will necessitate employers and employees to focus on efficiency productivity and output amid higher employment cost for the business sector.
"We hope that businesses would be able to partially absorb increases in cost to ensure no significant increases in the prices of goods and services as an increase in minimum wage must be matched with a corresponding rise in productivity growth.
"Given the increasing business costs, ACCIM would like the government to best manage the proposed implementation of a multi-tiered levy, especially for SMEs and also reconsider a mandatory contribution to the EPF by non-citizens," added the association.
