A NEW minimum wage structure must be implemented with gradual adjustments to minimise impacts on businesses, particularly small and medium enterprises.
“Budget 2025 is expected to announce a new minimum wage, currently RM 1,500 per month.
“We suggest a tiered approach, starting with an increase of RM 100 to RM 150, followed by further adjustments based on economic conditions,” said MCA Economic and SME Affairs Committee chairman, Datuk Ir Lawrence Low.
He said different minimum wage standards could be implemented based on state or company size to balance business sustainability and employee welfare.
“Additionally, we propose lowering corporate taxes to help businesses alleviate cost pressures and remain competitive,” he said in a statement.
The MCA vice-president also said speculations are rife that the government may withdraw the comprehensive RON95 petrol subsidy in favour of targeted subsidies.
“The Prime Minister has indicated that the Goods and Services Tax (GST) will not be reinstated immediately. “The MCA suggests exploring reforms to the RON95 subsidy to ensure the sustainability of our national coffers,” he said.
He stressed that any changes must avoid placing an excessive burden on citizens, especially given current inflation and rising living costs.
“A phased approach to subsidy withdrawal is recommended to prevent sharp price hikes that could negatively impact livelihoods.
“A sudden removal of subsidies might lead to significant social issues,” he added. – October 15, 2024
