25% hike in minimum wages will derail our businesses, say manufacturers
20 Mar 2022 06:00pm
Federation of Malaysian Manufacturers (FMM) wants Putrajaya to reconsider the minimum wages from RM1,200 to RM1,500 in May.
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KUALA LUMPUR - The Federation of Malaysian Manufacturers (FMM) has appealed to the government to reconsider the decision to immediately increase minimum wages to RM1,500 in May 2022 and instead take on progressive increment approach as it had suggested.
"We strongly feel that a more gradual increase would still be able to address the increase in the cost of living which is a result of the pandemic and the supply disruptions that have ensued.
"In addition, employers continue to plan for salary increments in 2022 and this would further address the cost of living pressures,” president Tan Sri Soh Thian Lai said in a statement today.
He said the federation strongly believed that with the necessary controls on cost increases by the government, employers could continue to maintain employment and wage adjustments.
Soh said the increase from the current minimum wages of RM1,200 to RM1,500 represented an immediate 25 percent hike on basic salary which would have a knock-on effect on the overall payroll cost and spiralling impact on business cost which could potentially derail business and economic recovery.
Based on the findings of the recent FMM-Malaysian Institute of Economic Research Business Conditions Survey for the second half of 2021 which was conducted from Jan 5 to Feb 10, 2022, a majority of the respondents were of the opinion that an RM100 increase in the minimum wages is an acceptable rate in this current review given the current economic conditions.
"In this regard, FMM had proposed to the government for the adjustment of the minimum wage to be implemented gradually with an RM100 increase in the third quarter of 2022 and a subsequent adjustment in 2023/2024 to reach RM1,500,” he added. - Bernama
