KUALA LUMPUR – The narrative that employers are driven to bankruptcy by minimum wage increments is completely untrue, said DAP vice-chairman M. Kulasegaran (Ipoh Barat-PH).
He said this while debating the royal address and advocated increasing the minimum wage, including for those working in micro-businesses, from RM1,200 to RM1,500.
The former human resources minister opined that, in actuality, increasing the minimum wage will not lead employers to bankruptcy, and urged the government not to solely be influenced by employers’ points of view.
“Multiple employers bemoaned that when we increase the minimum wage, it will lead to bankruptcy for multiple employers. Is this true?” he questioned.
“We see 10 years ago when the Minimum Wages Order 2020 was (amended), the Malaysian Employers Federation claimed that 600,000 employers will be driven to bankruptcy. But this is not true at all.
“That is an opinion raised by the employers. We (the government) mustn’t be tied to what they want, but we must analyse (the matter) holistically,” he added.
It was announced in December that the minimum wage of RM1,500 will only be implemented for companies with fewer than five employees this July, to help the companies adjust their cash flow and improve their financial standing.
However, Kulasegaran remarked that the implementation is baseless, and should not have been done by the new unity government.
“I state this because what is the rationale if we give salaries of RM1,200 to the minimum wage (workers), but foreign people who work in this country receive RM1,500? It does not make sense,” he said.
Based on a principle by the International Labour Organisation, Kulasegaran added that wage differences within the same careers must not be practised, while reiterating the importance of raising the minimum wage.
As most individuals under the minimum-wage gap fall under the hardcore-poor category, he claimed the wage raise will be of aid to them.
Citing the Buku Harapan, a manifesto made by Pakatan Harapan, Kulasegaran said one of the government’s promises was to increase salaries by RM100 annually for those on minimum wage.
He added that according to Bank Negara, the living wage for a working individual is RM2,700, while couples and families of two children require RM4,500 and RM6,500, respectively.
“See the working people who need help, it seems that we have abandoned them,” he said.
“But, I believe the matter can be overcome in a short period of time, I trust that the new government is capable of solving this issue,” he added.
Kulasegaran further commented that the salary increments will boost interest in work and those working in Singapore will be encouraged to return to Malaysia, on top of boosting the nation’s social economy.
Nonetheless, he added that simply raising wages is insufficient, and suggests the government provide industrial training to employees as well. – The Vibes, February 20, 2023
