Hoteliers ask for wage subsidies to avoid lay-offs

 

Malaysia’s hoteliers’ association says 6% of hotel workers have been retrenched since last year. (Bernama pic)

PETALING JAYA: The country’s main hotel association has urged the federal government to subsidise the wages of their workers because of the effects of a ban on domestic travel from Wednesday.

Malaysian Association of Hotels chief executive Yap Lip Seng said hoteliers understood that the government needs to restrict the movement of people as part of measures to control Covid-19 infections.

However, the industry would suffer. “The government must support the industry and its people; with little or no revenue, businesses will not be able to retain their people, and will not be able to pay salaries.”

He said the association has proposed that the government provide a wage subsidy of 50% for employees earning less than RM4,000 and 30% for those earning up to RM8,000.

He said wage subsidies were needed to keep businesses going “or else we will be forced to retrench employees with immediate effect”.

Yap said at least 6% of hotel workers have been retrenched since last year, while the rest have had their pay cut or go on unpaid leave.

“Compared with March 2020 we are in a worse situation now and we are expecting a bigger impact.”

Prime Minister Muhyiddin Yassin has announced restrictions on travel and social activities in Selangor, Penang, Melaka, Johor, and Sabah and the federal territories of Kuala Lumpur, Labuan, and Putrajaya. - FMT