RM3,100 GLC wage no basis for national minimum, say employers
Malaysian employer groups are pushing back against a proposed minimum wage hike to RM3,100, arguing that small businesses cannot match the pay scales of government-linked companies. They contend that using large corporations as a benchmark for national policy ignores the economic realities faced by SMEs.
Why it matters
This debate highlights the tension between living wage advocacy and the economic sustainability of small businesses in developing economies.
Employers fear that raising the minimum wage to RM3,100 per month could put some small companies out of business. (Bernama pic)
PETALING JAYA: Big corporations such as government-linked companies (GLCs) should not be used as the yardstick for determining minimum wage levels, according to employer and business groups.
The Malaysian Employers Federation (MEF) and Federation of Malaysian Manufacturers (FMM) pointed out that small businesses were in a different league from large firms, making it difficult for them to pay higher wages.
MEF senior advisor Syed Hussain Syed Husman said GLCs and government-linked investment companies (GLICs) were in a very different position in terms of profitability, productivity and their capacity to absorb higher wage costs.
“The operating environment and business models of SMEs differ substantially from those of GLCs and GLICs,” Syed Hussain told FMT.
Syed Hussain Syed Husman.
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