KUALA LUMPUR, April 14 — Two chambers of commerce have expressed their disappointment with the federal government’s decision to implement a new minimum wage of up to RM1,500 per month beginning on May 1.
Datuk Low Kian Chuan, president of the both National Chamber of Commerce and Industry of Malaysia (NCCIM) and the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) claimed that the decision would lead to inflation.
“We get bits and pieces of news about the new minimum wage in media,” Low said in a statement.
“Prime Minister [Datuk Seri Ismail Sabri Yaakob] and Human Resources Minister [Datuk Seri M Saravanan] have repeatedly promised to have an engagement session with the business associations but to our disappointment this announcement was made without any prior engagement and consultation with us.
“In the past practices, there was sufficient engagement and timeline for the implementation of minimum wage,” he added.
The government had been teasing a higher minimum wage since March this year but announcements regarding the matter were piecemeal, until Saravanan’s announcement last night that the new minimum wage is set to start next month.
The matter was first mentioned by Ismail Sabri during his winding-up speech at his party Umno’s General Assembly last month.
Saravanan added that some sectors will be given leeway in the minimum wage increase, with companies employing less than five workers currently exempt for now, alongside those experiencing huge losses such as farmers, hospitality and tourism industries.
However, Low stressed that judging from the announcement, most small medium enterprises (SMEs) would still be affected by the hike.
According to Saravanan, the implementation of the minimum wage rate is in line with the National Wage Consultative Council Act 2011, which needs to be reviewed once every two years.
The announcement has been celebrated by the public, seeing it as a policy that has been a long time coming.
However, opposition and pressure have come from employers and capitalists who have consistently attempted to delay the implementation citing rising costs and additional burden to them.
