KUCHING: A Chinese community leader has expressed concern that the government’s plans to increase the minimum wage will take a toll on small and medium enterprises (SMEs) in rural areas.
Taking into account that the government had only recently raised the minimum wage to RM1,500 on July 1 last year, he feared another hike would make it difficult for many businesses.
Temenggong Kueh Aik Seng, the Chinese community leader of Sri Aman therefore called on the government to reconsider the proposed increase in the minimum wage from RM1,500 to RM1,700, which is set to take effect on Feb 1, 2025.
“Businesses in rural areas tend to have lower workloads and productivity compared to urban counterparts, so maintaining the current basic wage is sufficient,” he said in a statement on Monday.
“A nationwide uniform wage increase does not take into account local economic realities, and it could jeopardise the survival of SMEs, especially in rural and suburban regions.”
Kueh said wages should be determined based on the cost of living and working conditions in specific regions, rather than applying a one-size-fits-all solution across the country.
According to him, this would help ensure the survival and stable development of SMEs, which are a crucial pillar of the national economy.
“The survival and growth of SMEs, especially in rural areas, is essential for Malaysia’s overall economic progress,” Kueh added.
In this context he urged Members of Parliament (MPs) from rural constituencies, particularly those representing Sarawak, to voice the concerns of their constituents during the upcoming 2025 Budget debate.
