Malaysian employers group appeals to delay minimum wage review

The Malaysian Employers Federation (MEF) has appealed to the government to delay the review of minimum wages, due in February next year.

“We appeal to the government not to add to the burden of employers at this juncture with the pandemic still flaring, and give the employers some breathing space to stabilise the business and create employment,” said MEF president Datuk Dr Syed Hussain Syed Husman in a statement. 

“MEF is of the position that the status quo should remain for the next two years at least, in view of the pandemic,” he said. 

He added that it is not the right time to review the minimum wage as this will add to costs of doing business, amid an environment where firms are forced to resort to retrenchment and downsizing exercises, or impose pay cuts between 30% and 50% to stay afloat. 

On May 1, Prime Minister Tan Sri Muhyiddin Yassin said in a televised address that the government is reviewing the minimum wage rate to ensure that the salary of workers remains relevant.

READ: Malaysian unions urge for better employee welfare amid pandemic

On the topic of minimum wage and workers’ rights, he said: “I hope all parties would get involved and urge those wishing to voice their views and suggestions on this issue to participate through the platform that is provided.”