Malaysian industry groups call for rethink of minimum wage hike
Industries in Malaysia are calling on the government to rethink the country’s minimum wage hike, which they believe would lead to companies losing their competitive edge and suffer higher costs, dampening business recovery.
The Malaysian Semiconductor Industry Association (MSIA) has highlighted that it was concerned with the raising of the monthly minimum wage from RM1,200 (US$262) to RM1,500 (US$357).
The increase is “too much too soon”, and companies will have insufficient time to adjust wage structures and make productivity improvements to stay competitive, said MSIA President Wong Siew Hai.
The industry associations also urged the government to consider a gradual wage increase over three years instead.
The Federation of Malaysian Manufacturers (FMM), which represents over 11,300 companies, also highlighted that the wage hike would affect manufacturers’ payroll cost, business costs and potentially derail business and economic recovery.
“Such a steep increase would have an undesirable impact on their business recovery,” said FMM President Soh Thian Lai.