PETALING JAYA: Imposing a higher minimum wage is long overdue as it has been stagnant for too long. However, businesses must be allowed to recover from the pandemic first, otherwise it would be a greater burden on them, said Permatang Pauh MP Nurul Izzah Anwar.
She said there has to be a comprehensive plan with complementary schemes such as tax breaks or subsidies to help businesses before the minimum wage requirement is implemented.
“For example, the announcement to defer the new minimum wage requirement for some small and medium enterprises (SME) and micro businesses will only be made on May 1. This is unreasonable, considering many segments have been left in the dark.
“Communications must be the pillar for any policy. For instance, former Human Resources minister M. Kulasegaran used to meet the Malaysian Employers Federation and Malaysia Trade Union Congress consistently to understand their issues.”
Nurul said issues such as red tape, delay in licensing and other issues that are a bane for businesses have to be dealt with, including the escalating cost of raw materials.
She said a 2019 research by the Competition Commission found distortion in prices, such as the pre-pandemic price of ikan kembong, that increased six times, from the fisherman to the consumer.
“Tackling the root causes of the problem rather than looking at the minimum wage would be helpful. Serious policy announcements should not be politicised. Instead, these should be made in Parliament and be comprehensive after consultations are held with all stakeholders.
“The government should know which are the vulnerable sectors. Policy announcements should not be made blindly as this is not a cowboy nation,” she added.
Nurul said businesses are in dire need of support because of the devasting impact caused by the pandemic. Hence, there is a need to look at other costs of doing business, including the ecosystem, agencies and middlemen involved.
Also, during the pandemic, the wage subsidy provided by the Finance Ministry was found to be insufficient.
“Look at the plight of workers, they must be paid accordingly, and businesses need to be given full support. Cronyism and corruption inhibit business growth.”
Nurul said there is a need to return to the issue of wage subsidies during the pandemic and how much was disbursed.
“No one can touch a moment in time without understanding what happened, as people used up their savings and even withdrew from the Employees Provident Fund.
“Suddenly, the people are being given an ill-conceived plan of a RM1,500 minimum wage. Our laws dealing with workers are archaic and not flexible enough. There are even complaints of violations.”
Nurul said major corporations have been making headlines about working conditions, and not SME. Hence, they are the ones that should be paying the RM1,500 minimum wage.
Source: https://www.thesundaily.my/local/delay-imposing-minimum-wage-nurul-CD9072370