KUCHING: The Sarawak Chamber of Commerce and Industry (SCCI) concurs with the Sarawak government that a thorough study is essential before adjusting the minimum wage in the country.
The SCCI fully supports Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg’s response to the United Nations Children’s Fund (UNICEF) recommendation to set the minimum wage rate at RM2,102 per month.
“The Chamber agrees with the Premier that the federal government should conduct a proper study on the affordability and threat of inflation before considering Unicef’s recommendation,” the SCCI told New Sarawak Tribune.
SCCI’s comments followed UNICEF’s recent proposal to the government to increase the minimum wage rate in Malaysia to RM2,102 from the current RM1,500, taking into account factors such as the cost of living, poverty line income and productivity.
Last Sunday (May 19), Abang Johari said that the federal government, especially Bank Negara Malaysia (BNM) and the Ministry of Finance, must assess the implications of the percentage increase on the market’s money flow.
“If wages increase, local consumption will increase, which will further stimulate the economy. However, the only threat is inflation.
“So, we need to control wage increases with inflation; we also want to avoid sudden increases in prices. If our inflation rises, then there is no benefit to raising salaries, so our economic policy must be balanced,” he added.
Abang Johari, who is also the Minister of Finance and New Economy, stressed the need for a mechanism to control inflation.
“When we raise wages, we don’t want to raise wages without increasing purchasing power. There is no benefit in that,” he said.
