SMEs interviewed say no to new minimum wage

Mohd Ariffin Abdullah

KUCHING (Feb 9): Most small and medium enterprise (SME) businesses in the city are not prepared for the implementation of a new minimum wage of RM1,500 which is planned before the end of this year.

This is according to those interviewed who were mostly of the opinion that it is not the right time to implement it as they are still in the process of reviving their businesses affected by the Covid-19 pandemic.

Sarawak Traders and Hawkers Association (PPPS) president Mohd Ariffin Abdullah said traders needed some time to stabilize their business before they can implement the proposal.

“Personally, I do not agree with the increase in the minimum wage to RM1,500 because we have to pay higher salary to employees, when there is not much profit to make.

“If it is implemented, for example, we will have to increase the price of items such as food sold to customers to cover the increase in employees’ salaries as well as operating costs and capital,” he explained.

He opined that the current minimum wage of RM1,200 was more than enough and requested that the proposal be postponed until the business and economic situation returns to normal.

Shajahan Sayed Ahma

India Street Pedestrian Mall deputy chairman Shajahan Sayed Ahmad believes that the increase in the minimum wage will have a particular effect om business operating costs.

The owner of a textile shop in India Street did not deny that the new wage adjustment would benefit workers but its impact will hit small traders like him.

“Furthermore, the business situation now is not as vibrant as before ,” he said, adding it would a burden  to pay his five employees with the new salary rate of around RM1,500.

As such, he opined it would be good if the government pay attention to measures to control the increase in the price of goods instead of raising the minimum wage for workers.

Meanwhile, a business proprietor Amir Hamzah Kassim, 53, said the new minimum wage rate of RM1,500 can only be applied to government agencies and not the private sector.

“Business operations of those in the private sector have not fully recovered and some of us are still struggling to do business.

“To pay the minimum wage of RM1,200 is also very difficult with the increase in the price of construction materials and so on. So now is not the right time to implement the new minimum wage,” said Amir, who runs a construction business.

As such, he hoped the government can provide some assistance if the proposal gets the go ahead so that business owners will not be burdened.

On Saturday, Human Resources Minister Datuk Seri M Saravanan reportedly said a minimum wage of about RM1,500 a month was expected to be implemented before the end of the year. However, he said the new rate had not been finalised as the ministry was still waiting for Cabinet approval.

from Borneo Post Online https://bit.ly/3HFLE1n
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