Minimum Wages

 

The Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) expresses its grave concern over the statement made by the Minister of Human Resource, M Saravanan in respect of the proposed revision of the minimum wage to RM1,500 a month.

ACCCIS opines that the proposal of increasing the minimum wage to RM1,500 a month is too hasty and lacks of in-depth consideration. After all, COVID-19 pandemic is still not over yet and it is not the right time to increase the minimum wage now. By doing so, it will exacerbate the devastating impacts of pandemic on the SMEs. As most are aware, maintaining a good cash flow and reducing the operation cost are the two prerequisites to keep most of the businesses afloat.

In order to cope with various uncertainties especially arisen from the COVID-19 outbreak, businesses need to have a strong cash flow to cushion and overcome the impacts of COVID-19. It should be the priority of the government to work closely with the business community and other stakeholders to fight COVID-19 and strengthen our economy as of now so that businesses could stay afloat and workers could keep their jobs. Otherwise, the hasty implementation of such revised minimum wage will kill off the surviving chance of many struggling businesses and will inevitably lead to massive layoffs, a significant reduction in employment opportunities, many families will lose their livelihoods resulting in many unwanted social problems, domestic demand will also decline due to the inflationary pressures on the prices of goods and services and ultimately economic recovery will be derailed.

ACCCIS appeals to the government to postpone the adjustment of the minimum wage system for at least two years to allow domestic businesses to have sufficient time to recover from the COVID-19 pandemic.

(The Borneo Post 08.02.2022)

(New Sarawak Tribune 08.02.2022)