MIRI – Sarawak Oil Palm Plantation Owners Association has rejected the proposal by the Human Resources Ministry to increase minimum wage to RM1,500.
In a statement today, its president Felix Mo said that the association’s members lack the financial resources to implement a salary hike, stemming from the economic downturn as a result of the Covid-19 health crisis.
“Due to the past two years of difficulties suffered by the palm oil business during the Covid-19 crisis, many plantations are still in the process of recovering from their losses. They are not able to spend more.
“Furthermore, the cost of operating in this industry has shot up, especially with the increase in costs of raw materials. The prices of fertilisers and pesticides had gone up by big margins already.
“Our members have to spend so much extra for these operational necessities every month. Any increase in minimum wages for workers now will require our members to spend even more of their revenues,” said Mo.
He added that Putrajaya should take all these factors into consideration before planning any wage hikes.
The businessman pointed out that the current situation is not conducive to raising minimum wages to RM1,500 a month.
Yesterday, the Sarawak Timber Association also joined those in the business and industrial sectors opposing the ministry’s plan to increase minimum pay to RM1,500 per month.
The association said its members will be badly affected if they have to dish out more every month to pay their workers.
“Small and medium scale entrepreneurs will be worst affected. There will be a domino effect where these operators will have much more financial burdens to deal with.
“Most are still trying to recover from the impact of the pandemic during the past two years,” the association said in a press statement.
On February 7, The Sarawak Housing and Real Estate Developers’ Association (Sheda) warned about the potential rise in prices for essential items following Human Resources Minister Datuk Seri M. Saravanan’s proposal to increase the minimum wage from RM1,200 to RM1,500 per month.
Sheda president Augustine Wong said in a statement that the increase in wages and salaries may see more negative consequences than positive ones, such as the soaring prices of goods.
“This is based on our past experience where salary increases would see prices of food and essential items increase. The ministry said the plan to increase minimum pay is to increase the spending power of the people to boost the economy.
“But the reality is that the increase may have the opposite impact.
“Aside from a hike in prices, there could also be a reduction in jobs if employers have to pay their workers more,” he noted, adding that instead of raising wages and salaries, the government should focus on productivity to boost the economy. – The Vibes, February 11, 2022
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