Many employers not happy with higher minimum wage
SIBU: Many employers are unhappy with the proposed implementation of the standardised minimum monthly wage of RM1,050 in the country from Jan 1 next year.
Businessman Dr William Ting Wei Ung, said its implementation is untimely as the nation is experiencing a sluggish economy.
He said many employers are already finding it hard to cope with rising cost of doing business, and the minimum wage when implemented might force them to retrench their employees.
He said those in the small-andmedium industry, for instance, would find it difficult to absorb the increase in overhead costs.
Ting suggested that the government consider the social and economic disparities between Peninsula and East Malaysia.
“There just can’t be a standardised rate throughout the nation,” he said.
He also mentioned the many differences between the Peninsula and East Malaysia in terms of the cost of living.
“Even at the current RM920 monthly wage in Sarawak and Sabah, many businesses in these two places are already finding it a burden,” Ting noted.
A transport company owner, who only gave his surname Ling, said efforts to help the nation to recover from the present sluggish economy would be hampered by the standardised minimum wage. He said the implementation of the RM1,050 minimum wage would cause a sharp drop in employment. Ling said he had been contemplating retrenchment since the proposal surfaced.
“I will take up some of the odd jobs myself in order to save costs,” he said, adding his company has 20 employees.