PETALING JAYA: The Malaysian Employers Federation (MEF) has urged businesses not to pass increased costs to consumers following the hike of the minimum wage to RM1,700.
Its president Datuk Dr Syed Hussain Syed Husman said price increases in products and services will lead to higher inflation and reduce competitiveness.
He said employers may explore several strategies to avoid passing the increased costs to consumers.
This is by putting in place improvements in operational efficiencies, investing in employee upskilling and reskilling to improve productivity, as well as embrace new technologies to improve processes.
He also urged government agencies having contracts with private sector service providers, GLCs, GLICs and larger corporations, both local and foreign, to immediately review the existing contracts from Feb 1.
“This is to enable the service providers to meet their obligations to comply with the new minimum wage of RM1,700,” he said in a statement.
“The often used excuse that a signed contract or running contract cannot be reviewed is no longer acceptable.
“All Malaysians must come together to make this new minimum wage a success.”
Syed Hussain said MEF fully supports the new minimum wage as a commitment to fair wages that will lead to better skills and productive workforce.
Under the Human Resources Ministry’s Minimum Wage Order 2024, which took effect yesterday, companies with five or more workers must pay a minimum monthly wage of RM1,700.
This is expected to benefit 4.37 million workers in Malaysia.
For employers with fewer than five workers, the new minimum wage will take effect from Aug 1.
