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Malaysia: Minimum wage increase could affect SMEs: Azmin
KUALA LUMPUR: A higher minimum wage could hurt small and medium enterprises (SMEs) as they are still struggling from the Covid-19 aftermath.
Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said the government need to consider the SMEs and informal sector before making any decisions to increase the country’s minimum wage.
“Every two years, the government needs to review the minimum wage.
“But, we also have to take into consideration of the current situation, where many of the SMEs and informal sectors are just about to recover from the pandemic,” he told reporters after announcing Malaysia’s Investment Performance in the manufacturing, services and primary sectors in 2021 at the Malaysian Investment Development Authority (MIDA) office on Tuesday.
Malaysia’s minimum wage currently stood at RM1,200 per month.
Human Resources Minister Datuk Seri M. Saravanan had previously said that a minimum wage of around RM1,500 was expected to be implemented before the year-end.
Meanwhile, Prime Minister Datuk Seri Ismail Sabri Yaakob said the government is holding engagement sessions with employers on the RM1,500 minimum wage to enable it to be implemented holistically.
He said for this purpose, the Human Resources Ministry is holding discussions with unions.
Azmin pointed out that the decision of the minimum wage will be decided by the cabinet next week.
“So whether it is the right time for us to impose this wage subsidy on the smaller companies including the SMEs.
“This matter was discussed again in 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 impact on the SMEs and also informal sectors,” he said.
Source: https://www.thestar.com.my/business/business-news/2022/03/08/minimum-wage-increase-could-affect-smes-azmin