‘Minimum wage increase likely to affect SMEs’

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KUALA LUMPUR: The next minimal wage might harm the small and medium-sized enterprises (SMEs) as they’re nonetheless struggling from the consequences of the Covid-19 pandemic.

According to Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali, the federal government wants to contemplate the SMEs and casual sector earlier than making a choice to increase the nation’s minimal wage.

“Every two years, the government needs to review the minimum wage but we also have to take into consideration the current situation whereby many of the SMEs and informal sectors are just about to recover from the pandemic,” he informed reporters after asserting Malaysia’s funding efficiency within the manufacturing, companies and first sectors in 2021 yesterday.

The nation’s minimal wage is at present at RM1,200 monthly.

Human Resources Minister Datuk Seri M. Saravanan had beforehand stated {that a} minimal wage of round RM1,500 was anticipated to be applied earlier than the tip of the 12 months.

Meanwhile, Prime Minister Datuk Seri Ismail Sabri Yaakob stated the federal government is holding engagement periods with employers on the RM1,500 minimal wage to allow it to be applied holistically.

He stated for this function, the Human Resources Ministry is holding discussions with unions.

Azmin stated a choice on the minimal wage can be made by the Cabinet subsequent week.



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