Increasing minimum wage will hurt plantation industry, says FGV chairman

File picture shows a worker collecting palm oil fruit inside a palm oil factory in Sepang November 13, 2017. — Reuters pic
File picture shows a worker collecting palm oil fruit inside a palm oil factory in Sepang November 13, 2017. — Reuters pic

KUALA LUMPUR, June 28 — The move to increase the minimum wage to RM1,500 from the current RM1,000 will impact the plantation industry, says Felda Global Ventures Holdings Bhd (FGV) chairman Datuk Wira Azhar Abdul Hamid.

“For every RM100 rise in every minimum wage, it would burgeon FGV annual production cost by RM33 million and this will impact on our profits,” he said at a press conference after FGV shareholders’ meetings today.

Previously, Pakatan Harapan has pledged to increase minimum wage to RM1,500 in its 14th General Election manifesto.

After the change in the government, the Human Resources Minister, M. Kulasegaran announced the new minimum wage would be finalised by August this year.

He also said the National Wages Consultative Technical Committee (JTPGN) has completed its review of the minimum wage as specified under the National Wages Consultative Council Act 2011 (Act 732).

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