MEF, MTUC say state-based minimum wage proposal ‘problematic’

Free Malaysia Today

The two groups say such a policy would lead to various issues, including an uneven playing field.   Read More:   Laporan Lanjut:   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------  Check us out at https://www.freemalaysiatoday.com  Follow FMT on Facebook: https://bit.ly/49JJoo5  Follow FMT on Dailymotion: https://bit.ly/2WGITHM  Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h  Follow FMT on TikTok : https://bit.ly/3uKuQFp  Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX  Follow FMT LinkedIn - https://bit.ly/42YytEb  Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj  Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------  Download FMT News App:  Google Play – http://bit.ly/2YSuV46  App Store – https://apple.co/2HNH7gZ  Huawei AppGallery - https://bit.ly/2D2OpNP   #FMTNews #MinimumWage #StateBased

Transcript

00:00An employer's group and a trade union have dismissed calls for the implementation of

00:06a state-based minimum wage, saying the policy would create numerous issues.

00:12Malaysian Employers' Federation President Syed Hussein Syed Husman said, while the proposal

00:16by the Federation of Malaysian Manufacturers appeared theoretically sound, its execution

00:21would be problematic.

00:23Syed Hussein said, a state-based minimum wage would create an uneven playing field, giving

00:28businesses in lower-wage states an unfair advantage over those with a higher baseline.

00:33He added that a non-uniform wage system would lead to wage disparities, causing worker migration

00:38and labor shortages in states with lower minimum wages.

00:42On January 31, FMM proposed that future minimum wage adjustments consider state-based or regional

00:48models to better reflect local economic realities, as the current RM1,700 uniform rate could

00:54strain businesses in less-developed areas.

00:57FMD Abdul Ghani of the Malaysian Trades Union Congress said implementing a state-based minimum

01:02wage could lead to wage suppression, with employers in lower-wage states keeping salaries

01:07stagnant under the pretext of unaffordability.

01:10He also said there was the risk of companies relocating to lower-wage states to reduce

01:14labor costs, leading to job losses in higher-wage states.

01:18Danish Rajareza, FMT News.

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