MEF changes mind about blanket minimum wage policy

PETALING JAYA: The Malaysian Employers Federation (MEF), which had initially opposed a blanket minimum wage policy, says it would accept the Government’s decision to go ahead with it.

MEF executive director Shamsuddin Bardan said parties involved in the tripartite discussions had reached a “common ground” based on consensus on minimum wage.

“It is up to the Government to pursue its implementation and fix the rate for wages,” he said yesterday.

However, he echoed concerns raised by former prime minister Tun Dr Mahathir Mohamad over the negative impact of minimum wage on Malaysia’s economy.

“We hope any rise in wages following implementation of the policy would not be too drastic but done in moderation.

“This is to avoid adverse effects on employers and the economy,” he added.

He welcomed the assurance by Human Resources Minister Datuk Seri Dr S. Subramaniam that the national minimum wage would cover all sectors of the economy except for “one or two very small ones” to ensure workers’ rights are safeguarded.

Shamsuddin expressed concern that workers could lose their additional incentives and allowances once the minimum wage policy is implemented.

MEF vice-president Michael Chiam said employers may choose to remove these benefits once the policy comes into effect.

He said that although many sectors had low basic wages, they had additional benefits such as transport, meal and overtime payments.

“The plantation sector workers are given free housing and do not have to pay utility bills,” he said, adding that increased wages may cause employers to cut back on such benefits.

He also said the take-home salary of workers in some sectors was above RM1,000 after including other allowances although their basic salary may only be between RM500 and RM600.