There are still many companies and employers do not agree to raise the minimum salary to RM1,500, government is actively discussing with the relevant units, with an eye on raising the minimum salary to RM1,500 by the end of this year.
Prime Minister revealed that some companies cannot afford the minimum salary of RM1,500 and government is worried that employers will eventually choose to lay off their staff if they cannot afford the salary, which will lead to an increase in the number of unemployed.
He pointed out that government’s intention is to help employees, but the minimum wage may lead to employees losing their jobs, which would be putting the cart before the horse.
Currently, the Ministry of Human Resources has submitted a proposal to the cabinet to raise the minimum wage to RM1,500, and the cabinet asked to submit a more detailed discussion before deciding whether to raise the wage.
In response, some people said that raising the minimum wage will only increase inflation in the country as employers will raise the price of goods to pay their employees. Some also argued that raising the minimum wage would cause more people to lose their jobs because employers could not afford to overpay, or at least choose to lay off employees.
Some also say that raising the minimum wage would only benefit foreign workers and disadvantage domestics.
