The Malaysian Employer’s Federation (MEF) wants the government to postpone the upcoming implementation of the Minimum Wage Order 2016 (MWO) over concerns that at least 30,000 may lose their jobs.
The impact would be especially tough on employees at lower levels, MEF executive director Datuk Shamsuddin Bardan said.
At the Budget 2016 tabling in October last year, Prime Minister Datuk Seri Najib Razak announced that minimum wage for employees in Peninsular Malaysia will be raised by RM100 to RM1,000 per month starting from July 1. For those in Sabah, Sarawak and Labuan, the minimum wage has been set at RM920.
Najib had said last year that the new minimum wage rate would be applicable to all sectors, except domestic service or house maids.
The MEF chief told Bernama: “Employers have to bear high cost if MWO 2016 is enforced and will retrench workers before July to reduce operating cost and retrenchment benefits.”
A depressing scenario, particularly for those in sectors such as oil and gas, banking and finance, insurance and retail, Shamsuddic said.
“Hypermarkets have seen a big drop in turnover and some of them may have retrenched their workers via voluntary retrenchment. This situation is worrying and the government should help local companies to survive during difficult times and to retain employees,” he was quoted as saying.
