Workers could flock elsewhere if M’sia not firm on minimum wage: Kula

KUALA LUMPUR – Former human resources minister M. Kulasegaran has urged the government to monitor and take stern action against employers who refuse to comply with the newly implemented minimum wage. 

He said that the lack of firmness in compliance will lead to workers shouldering heavier burdens, especially with the possible return of the goods and services tax (GST).

In a statement yesterday evening, Kula alleged that contract workers in government buildings are still being paid RM1,200 instead of the increased rate of RM1,500. 

“The people are already suffering from food price inflation and an overall increase in the cost of living,” he said.

The government must step in if employers blame contractual obligations as a reason to not increase salaries.”

He said that while providing subsidies to low-income earners is currently necessary, a long-term plan is also needed to empower the workforce, leading to productivity gains that would minimise the impact of inflation and improve the overall well-being of labourers.

“It is high time that the government deliberate more progressive ideas like that of Singapore’s progressive wage model, where a drive to increase worker’s wages through upgrading skills and improving productivity is cultivated,” he said. 

He also questioned provisions under the present minimum wage policy, warning that if authorities continue their lackadaisical attitude, then precious manpower might be lost to other nations. 

“Are all employers compelled to pay the minimum wage of RM1,500 or are there some exceptions? If exceptions are given, what criteria are used and how many are exempted? Will a name list be provided to make public which employers are exempted? 

If we do not do something, we can soon see our workers employed in countries like Vietnam and Indonesia, where wages have drastically improved over the years,” he said. 

During the Umno general assembly in March, Prime Minister Datuk Seri Ismail Sabri Yaakob announced the implementation of the revised minimum wage starting May 1.

However, Ismail Sabri said the new rules can only be enforced upon companies with five employees or more. 

Previously, the Malaysian Employers Federation called on the government to scrap proposed increases to the country’s minimum wage, saying such a move “will kill businesses,” since many employers are still reeling from losses brought about by the Covid-19 pandemic and the floods earlier this year. – The Vibes, June 6, 2022