PETALING JAYA: The review of the RM1,700 minimum wage must balance rising living costs with businesses’ ability to absorb higher labour costs, employers say.
Malaysian Employers Federa-tion (MEF) president Datuk Dr Syed Hussain Syed Husman described the review as reasonable, provided it was evidence- based and involved discussions with stakeholders.
“A review should not automatically mean that the minimum wage must be increased, as the existing rate should first be assessed against current economic conditions,” he said.
He added that the review should take into account the challenges faced by employers, particularly micro, small and medium enterprises (MSMEs) and labour-intensive businesses, which are grappling with high operating and regulatory costs amid an uncertain global economy.
“Malaysia should avoid making wage decisions based solely on cost-of-living pressures without considering the ability of businesses to absorb higher labour costs,” he cautioned.
He warned that a significant increase in the minimum wage could lead to higher prices, reduced hiring, automation, job restructuring or fewer working hours.
Syed Hussain said productivity, employment, business capacity, sectoral differences and Malay-sia’s competitiveness against other Asean economies should also influence any new rate.
He called for a review mechanism based on objective indicators to give businesses greater certainty when planning wages, investments and manpower requirements.
Meanwhile, Malaysian National Association of Employment Agencies president Fiona Low said the review was consistent with the National Wages Consultative Council Act, which requires the minimum wage to be reviewed at least once every two years.
However, she cautioned against relying solely on mandatory blanket minimum wage increases, which could severely impact the economy.
“We should also focus on stabilising Malaysia’s economy without relying solely on mandatory blanket increases to the statutory minimum wage,” she said.
National Association of Human Resources Malaysia president Zarina Ismail said the review must be considered from multiple angles to ensure sustainability.
“The economy must move in tandem with wage increases.
“If not, there is a risk of businesses being unable to absorb higher costs or there may be layoffs as well,” she said.
She added that a wage increase would benefit those living in urban areas, where the cost of living is significantly higher than in rural areas.
Uni Malaysia Labour Centre president Datuk Mohamed Shafie BP Mammal said workers’ wages must reflect the current cost of living, particularly rising costs of food, housing, transport, education and other essential expenses.
“For workers, the issue of wages is not merely about a figure on a payslip, as the more important question is what can be purchased with that wage,” he said.
Mohamed Shafie said workers should have sufficient income not only for necessities, but also for savings, healthcare, their children’s education and unexpected expenses.
He called on the relevant stakeholders involved in the review to assess key indicators before determining a new minimum wage.
