Downside of hiking basic wage

AFTER the recent announcement on the impending hike of the minimum wage from RM900 to RM1,000, the arguments for and against it have reverberated strongly. Employers have complained that their costs are piling up with the GST, hike in levy for foreign workers and now the rise in minimum wage. And on top of these, the so-called employment or unemployment insurance is looming like an albatross above.

For SMEs in the prevailing environment of reduced demand in the retail sector, the economic prognosis has not been favourable. Many are cutting costs and juggling their cash flow just to stay afloat. Additional overheads in such trying times would not be sweet music to their ears.