KOTA KINABALU: Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) president Datuk Michael Lui yesterday appealed to the government to consider making the new minimum wage, which will come into effect on July 1 this year, as a guideline for employers, instead of enforcing the new wage payout.
Lui said many traditional businesses and small operators would face closure when the new minimum wages took effect.
“Some employers may cut costs by letting go unskilled, junior or senior workers, which will increase the unemployment rate.”
As the president of KKCCCI, Lui said the chamber considered not just the interests of employers, but also that of employees.
“We understand that a monthly stipend of RM800 will be insufficient for employees with the inflated prices of goods.”
Hence, Lui suggested the Federal and State Governments could consider giving a guideline on salary and do away with the enforcement.
For instance, he said the government could encourage businesses to follow a pay scale with a minimum wage of RM920 or higher, rather than forcing employers to do so.
He said this when asked to comment on the new minimum wages and Democratic Action Party (DAP) secretary general Lim Guan Eng’s statement that the rising cost of living and the inflated prices of goods post-GST requires that minimum wages for all states in the country be fixed at RM1,200.
Come July 1, the minimum wage will be increased from RM900 to RM1,000 in the peninsular and from RM800 to RM920 in Sabah and Sarawak.
Employers found guilty of violating the minimum wage policy can be fined RM20,000 or face five years in prison and fined RM1,000 a day if they continue to commit the offence.
“Businessmen are also smart. If an employee is performing well, employers will be willing to pay more than RM1,000.
“Employers want to keep skilled and loyal workers.
“However, it is not worth it to pay a lazy worker RM1,000.”
Lui reiterated that unskilled workers would be the first to be let go when the new minimum wages were implemented, and unskilled and inexperienced workers would find it hard to find a job.
“I foresee a lot of jobless people (if the new minimum wages are implemented).”
On Lim’s opinion to raise the minimum wage to RM1,200 nationwide, Lui said that was impossible as it would cause negative repercussions.