MIRI – The Sarawak Timber Association has counted itself among members of the business and industrial sectors opposed to the proposed increase in the minimum wage to RM1,500 per month.
The association, which represents many timber-related entrepreneurs in this state, said its members will be badly affected if they have to dish out more money each month to pay their workers.
“Business operators will be badly affected by the extra amount of money needed to pay their workers’ salary if it is increased.
“Small and medium-scale entrepreneurs will be worst-affected.
“There will be a domino effect, giving operators more financial burdens to deal with.
“Most are still trying to recover from the impact of the pandemic in the past two years,” the association said in a press statement today.
On February 7, the Sarawak Housing and Real Estate Developers Association had also expressed that its members are not in favour of the increased minimum wage for its workers in the state.
The association’s response comes after Human Resources Minister M. Saravanan had proposed to increase the minimum monthly salary from RM1,200 to RM1,500 per month.
Association president Augustine Wong had said the increase in wages and salaries may have a more negative impact.
“The increase may cause the prices of goods to soar. This is based on our past experience where salary increases cause prices of food and essential items to increase.
“The ministry said the plan to increase the minimum pay is to increase the spending power of the people to boost the economy.
“However, the reality is that the increase may have the opposite impact.
“Aside from a hike in prices, jobs could be reduced if employers have to pay their workers more,” he had said in a statement.
Wong said instead of increasing wages and salaries, the government should increase productivity to boost the economy.
“The government can increase productivity by cutting down business operation costs.
“Reducing bureaucratic red tape will also help improve the efficiency of businesses and industries,” he said.
Saravanan had said the ministry hoped to get the cabinet’s approval for the proposed salary hike by the end of this year. – The Vibes, February 10, 2022
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