Increased minimum wage will burden employers — KKCCCI
KOTA KINABALU: The increment of RM130 for minimum wage from RM920 to RM1,050 per month beginning January 1 next year will inevitably add to the financial burden and costs for employers in Sabah.
Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) president Datuk Michael Lui said the government’s announcement to implement a standardized new minimum wage of RM1,050 a month nationwide starting next year was as expected.
He pointed out that the new minimum wage represented an increase of RM50 (five percent) from the current rate of RM1,000 in Peninsular Malaysia, and a raise of RM130 (14 percent) in East Malaysia.
“The increment will inevitably add to the cost for employers,” he said.
Lui said employers and businesses must be wellprepared for the rise in minimum wage as the RM130 increment would not only affect newly-hired employees.
“The salaries of existing employees will have to be adjusted as well in accordance with the new minimum wage. This will increase the operating costs of companies and subsequently affect the economy,” he said.
He added that some employers might be forced to lay off some employees in order to cut costs for survival. Nonetheless, Lui hoped that his members and businesses would remain optimistic and back the government in tackling the economic issues faced by the nation.
“I hope that businesses will take the appropriate measures in response to the new minimum wage and avoid laying off workers or shutting down their businesses,” he remarked.
He added that KKCCCI would continue to support the government’s efforts to spur the economic growth of Sabah, including policies to create a conducive business environment, reduce costs of doing business, attract foreign investors and increase productivity and competitiveness.