Not everyone is totally happy about the soon-to-be-implemented RM1,500 minimum wage. You guess it right. Those that aren’t too happy about it are the employers. According to the Malaysian Employers Federation (MEF), raising the minimum wage to RM1,500 per month before the end of the year will destroy businesses that are still reeling from the economic blow caused by the Covid-19 outbreak and the disastrous impact of the recent big floods.
Though many employees beg to differ, the Malaysian Employers Federation suggests that the government put more effort into the private sector’s recovery and the controlling of rising product and service costs. Added MEF, most businesses in Malaysia are considered micro, small, and medium businesses and their survival and sustainability should be taken seriously.
The fact remains that many employers are still facing serious hurdles to stay afloat. The bleak economic outlook leaves no room for an increase in existing minimum pay. Because businesses would be unable to fulfil their loans, the shift would result in more unemployment and commercial indebtedness. These are the MEF’s concerns as the RM1,500 minimum wage is rumoured to be implemented by the end of 2022. The concern is of course backed by valid reasons.
However, Malaysian employees have gone through a major economic downfall since the pandemic. Many have lost their jobs and have no valid income at all to support their families. The ones that still with jobs, most of them had their salaries cut down because the employers are trying to save the business.
Most employees have no choice but to agree to the terms as it is better to have less salary than no salary at all. The rates of Malaysian borrowing money from loan sharks have spiked up in these two years. The employee’s survival deserves to be taken seriously too. It is time that Malaysia increases the basic salary to match their standard as a successful country.
Asyiqin Razak is a content writer under Headliner by Newswav, a programme where content creators get to tell their unique stories through articles and at the same time monetize their content within the Newswav app.
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