Still discussing minimum wage for micro-entrepreneurs - Noh Omar

 

The implementation of the RM1,500 minimum wage rule for micro-entrepreneurs is still under discussion, said Minister of Entrepreneur Development and Cooperatives Noh Omar.

He said this was following an appeal by the entrepreneurs for its implementation to be reviewed.

"We will discuss the matter and we know that many sectors that went bankrupt during the pandemic were from the micro-entrepreneur group who conduct their businesses from stalls and so on.

"If the implementation of the minimum wage is made a rule, they are worried that if they cannot afford to pay the amount, then workers can report to the Labour Department,” he said.

He was speaking to reporters after the launch of a Special Edition Gold Series to commemorate 100 years of the cooperative movement in Kuala Lumpur today.

Noh (above) said, however, micro-entrepreneurs who could afford to pay the minimum salary of RM1,500 were encouraged to do so.

On March 19, Prime Minister Ismail Sabri Yaakob announced the minimum wage rate of RM1,500 per month would be implemented nationwide from May 1.

In another development, Noh said to strengthen the cooperative movement, Universiti Keusahawanan dan Koperasi will be established in Cyberjaya.

“Besides that, we are also making efforts to separate Bank Rakyat's affairs from its other activities such as tourism, real estate, development and so on, as Bank Negara Malaysia no longer allows Bank Rakyat to be involved in activities other than banking.

"In this matter, we will create BR 2 .. however, further details related to BR 2 and the establishment of this university will be announced by the prime minister in conjunction with the launch of the 100 Years of the Cooperative Movement celebration in July," he said.

RM41.5b turnover for cooperative sector

Earlier, Noh in his speech said based on the 2020 Economic Report for the Cooperative Sector published by the Malaysian Cooperative Commission, as of Dec 31, 2020, the turnover for the sector was RM41.5 billion.

He said the financial services sector was the largest contributor to the overall revenue of the cooperative movement at 83.2 percent, followed by the property development sector and the construction industry (10.8 percent), and the wholesale and retail sector (4 percent).

"Bank Rakyat and Co-opbank Pertama are the largest contributors to the financial services sector at 70.7 percent, followed by credit financing activities (15.8 percent), and Ar-Rahnu (13 percent)," he said.

On the Special Edition Gold Series in conjunction with the 100th anniversary of the cooperative movement issued by RMS Gold, a subsidiary of Bank Rakyat, he said it was a sign of support to cooperatives and their customers who have supported the sector.

There are 2,000 units of gold wafers weighing one and five grams available at RM340 for the one-gram version and RM1,600 for the five-gram wafer, while it is RM1,300 for a 4.25-gram gold dinar.

- Bernama