Businesses set to pass on wage hike burden to buyers
Published on: Wednesday, May 04, 2016
Kuala Lumpur: Consumers will bear the brunt of cost increases when the minimum wage is raised in July, a business group has warned.SME Association of Malaysia ex-president Teh Kee Sin was reported as saying that small and medium-sized firms will likely shift the increased operational cost directly to buyers."Consumers would definitely have to pay more. In the end, it will also be hard for those earning the RM1,000 minimum wage," he was quoted as saying.
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Teh reportedly said that the minimum salary should not be seen as a temporary step to help boost the country into a high-income nation status in four years' time.He said skills training and development were necessary for the country to make significant and lasting climbs up the value chain."If you develop their skills, they will have better opportunities to earn better salaries," he was quoted as saying.Teh also claimed several SME employers have put the salary increment for their workers on hold in anticipation of the move by the government.
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"Usually, the increments come in earlier in the year but it has been put on hold. They will treat it like any other salary increment come July," he was quoted as saying.Stay up-to-date by following Daily Express’s Telegram channel.
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Putrajaya confirmed this week that the increase will take effect in July.
