KOTA KINABALU: An increase in the nation’s minimum wage brings the good as well as the bad for both employees and employers in Sabah.
Gain Forlife Academy Sdn Bhd founder and managing director Nelson Mosinoh said the move would help workers to cope with the rising cost of living but would prove challenging to employers as they struggle with the increase in operational costs.
“Is there anything we can do to reduce all this related costs? I believe we can if we have the political will to do it. Just look back at the national Auditor General’s Report about the irresponsible spending made by our government agencies,” said the concerned Mosinoh when contacted by the Borneo Post.
“If we don’t take the bull by its horns, no amount of money can be enough for the government to spend and in the end the rakyat will have to bear all the increasing costs (increase in electricity and water tariff, introduction and further increase possibility of GST (Goods and Services Tax) and etcetera.
“Then in years to come the same old reason will be used to justify the need to increase minimum wages due to the increase in the cost of living,” he added.
Mosinoh also overruled the need to standardize the minimum wage between government and private sector.
“Before any policy is made, the government has to consider both the stakeholders. Standardization of minimum wage in the government and private sector is not necessary simply because one of many reasons,” said the managing director.
“In the private sector, one’s salary whether high or low depends on merits (performance, work attitude, skills and etcetera), whereas in the public sector (some only not all) one’s salary depends not so much on merit but on who you know, your political background and how good you are in sweet talking your superior.
“On another note, with the challenging business environment that the private sector is facing now, standardizing the salary will not be favouring the private sector. Thousands of small business operators had closed shop when the GST was implemented. If the private sector were to be pushed further again by standardizing wages, then in the end the rakyat will be affected with unemployment,” he said.
Meanwhile, architect Datuk Ar Jia Lit said standardization of the minimum wage between the government and the private sector was no simple matter.
“I think it is difficult to simply just standardize the minimum wage across the board without breaking it down to clearer categories of types of jobs and such,” said the architect.
“To me, in the private sector, the minimum wage is applicable for permanent jobs. However, if the jobs are on a temporary or casual basis, then we need to be careful when talking about minimum wages,” he added.
However, Jia Lit urged for the government to be more transparent and fair to employers before implementing the minimum wage.
“Most small casual business employers are barely surviving their day to day earnings. Those small corner hawker food stalls in coffee shops, a constant turnover can be so obviously observed and many have told me they couldn’t survive and need to move on and such,” he said.
In addition, Jia Lit reckoned that tax benefits should be granted to employers who provided more temporary or permanent jobs to the community.
“That way, employers will then feel more willing to pay minimum wages, say paying less taxes for providing more jobs depending on the type of business they are in,” he said.
Meanwhile, Orange Convenient Store Sdn Bhd chief operating officer Joseph Koh said the implementation of the minimum wage could be done in a timelier fashion.
“Personally, I don’t think now is the best time to implement such changes. Firstly, due to the low tide of the economy and secondly, due to the liquidity of cash flow in the market,” said Koh.
“Such implementation will not guarantee a push in productivity, and since cash flow is low, it will not help to improve the current economy,” he concluded. –