New minimum wage ruling hard on Sarawak businesses — Chamber
KUCHING: TheAssociatedChinese Chambers of Commerce and Industry of Sarawak (ACCCIS) is of the view that the implementation of the new standardised minimum wage of RM1,100 would not augur well for businesses in Sarawak and Sabah.
In a press statement yesterday, ACCCIS said the move – to take effect on Jan 1 next year – said Sarawak-based companies will be particularly affected in view of the present sluggish economy.
“Although ACCCIS fully supports the Pakatan Harapan government’s effort to alleviate the standard of living as well as increase the spending power of the people, the implementation of new standardised minimum wage would be tough for the businesses in Sarawak as the cost of operation is comparatively higher compared to our counterparts in Peninsular Malaysia,” it said.
ACCCIS added that Sarawak still lags behind in terms of road and air connectivity as well as other supporting facilities which are instrumental for economic growth.
“It is crucial for the government to take all factors into consideration before standardising the minimum wage nationwide.
“The minimum wage should be regionalised and sectored, with regards to the different cost of living in urban areas and rural areas, and the different levels of expectations from employees in different sectors of employment.”