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MIRI – The Sarawak Housing and Real Estate Developers Association (Sheda) is warning about the potential rise in prices for essential items following Human Resources Minister Datuk Seri M. Saravanan’s proposal to increase the minimum wage from RM1,200 to RM1,500 per month.
Sheda president Augustine Wong said the increase in wages and salaries may see more negative consequences than positive ones, such as the soaring prices of goods.
“This is based on our past experience where salary increases would see prices of food and essential items increase. The ministry said the plan to increase minimum pay is to increase the spending power of the people to boost the economy.
“But the reality is that the increase may have the opposite impact.
“Aside from a hike in prices, there could also be a reduction in jobs if employers have to pay their workers more,” he said in a statement.
Wong said instead of increasing wages and salaries, the government should increase productivity to boost the economy.
“The government can increase productivity by cutting down operation costs of business.
“Reducing red tape will also help improve efficiency of businesses and industries.”
Wong also urged the government to not go ahead with their minimum salary adjustments.
Saravanan had said the ministry hoped to see approval from the cabinet for a minimum salary hike from RM1,200 per month to RM1,500 by the end of the year. – The Vibes, February 7, 2022