KUCHING, March 23 — The Sarawak Manufacturers’ Association has proposed that the new minimum wage set for implementation on May 1 this year be a ‘guideline’ instead of a law to enable employers to raise their workers’ salary when they are able to do so.
“We propose that it is set as a guideline for the companies to follow. Those who can follow, they follow, while those who can’t; they can do it another time. It will be more friendly, especially during this time. “Like what our Premier had said, manufacturing is going to be one of the key roles in making Sarawak a developed region, so we have to make sure the manufacturers are surviving until the pandemic is over and productivity resumes to normal.
The minimum wage was first enforced in 2013 under Minimum Wages Order 2012, which was set at RM900 then. The last revision was in 2020, when it was hiked to RM1,200 in 56 cities and towns, but remained at RM1,100 in other areas. “As the minimum wage increases, it is not only an increase for the low-income workers but also the company’s human resources. Yet the productivity remains the same. This means the overall cost is going to go up, which will result in the end-product being more expensive,” he said.